VRS could be way out for AI

Air India might consider Voluntary Retirement Scheme as an option to trim its overloaded workforce.

An official said the board of directors is expected to discuss the matter on Tuesday. The ailing airline has roughly 400 people per aircraft on its rolls while the industry norm is 100 per aircraft. The annual salary outgo for the airline is a whopping Rs3,600 crore.In 2007, Air India had unsuccessfully tried to implement voluntary retirement for its cabin crew. This time, employee unions are likely to oppose any such move.

A retired Air India employee said there was no need for voluntary retirement because service rules say unproductive employees should be relieved. “What is the need for VRS when there is already a Compulsory Retirement Scheme?” he asked. “In the erstwhile Indian Airlines, anyone over 55 was given an extension yearly.”

The official refused to divulge details of the scheme but said the central government would bear the costs because it would be part of the government’s equity support.