Different retirement ages for pilots of Air India and those of Vistara could be a potential issue, with reports suggesting that a section of the flying officers are unhappy as the merger between both carriers gets underway this week.
Formerly owned by the government, Air India came under the Tata fold in 2022. The latest merger with Vistara, which is supposed to be concluded later this week, has also raised questions regarding the confusion about the retirement of pilots.
As of now, the retirement age for pilots and staff is 58 years at Air India and 60 years at Vistara. Current DGCA regulations allow pilots to fly up to the age of 65. Reports say that management has yet to provide a statement regarding the same to clear any brewing discord.
"While the management was prompt in bringing parity in terms of salary structure and other working conditions of the employees of the two airlines as part of the merger process, it is yet to address the issue of two different retirement age limits," an anonymous source told PTI.
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Will Singapore Airlines' investment help transform Air India?
Singapore Airlines recently announced that it would invest Rs 3,194.5 crore in the merged Air India entity.
This adds to the merger consideration of 49 per cent interest in Vistara and Rs 2,058.5 crore in cash from Singapore Airlines (SIA) in exchange for a 25.1 per cent stake in the merged carrier.
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"SIA's additional capital injection is expected to be Rs 3,194.5 crore (about SGD 498 million), based on Tata's funding to Air India to date. This will occur after the completion of the merger and within November 2024 through subscription to new Air India shares," read a statement by Singapore Airlines.
