Air India CEO Reveals What Has Changed In The Airline After Tata Group's Takeover

Its been more than two years since Air India made its Rs 18,000 crore comeback into the Tata group. Reflecting on what has changed for Air India after Tata group¡¯s takeover, the airline¡¯s CEO recently revealed on the journey as well as Air India¡¯s future plans.

Air India CEO Reveals Changes After Tata Group's Takeover

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After its acquisition by the Tata Group, Air India underwent a cultural shift brought about by the hiring of new staff and training, according to CEO and MD Campbell Wilson.

Following the acquisition of the airline, Air India has let go of some of its more senior staff and hired new ones. During its privatization, the average employee age dropped from 54 to 34 years old, according to Wilson, who made this statement on Wednesday at the Skift India Summit 2024, as per ET report.

"There had been no recruitment in non-flying staff for the last 15 years (before the acquisition in 2022). We have been able to recruit a whole bunch of people not only for necessity but also for their competency and bring down the average age of employees," he said.

Also Read: Tata Group's Air India & Vistara Set To Merge In 2025

Less Than 1% of Air India Staff Was Laid Off

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CEO Wilson's remarks coincide with Air India's 200+ employee layoffs as part of the airline's restructuring. Less than 1% of the company's workforce were laid off; they also did not take advantage of the airline's retraining opportunities or voluntary retirement plan. According to the statement, Air India complied with all legal requirements, including providing the sacked workers with fair compensation.

In January 2022, the government gave up control of Air India to the salt-to-steel conglomerate. During privatization, there was an agreement that required the new owners to keep all of the staff for a year.

How Air India Is Transition With Employees

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Air India CEO claimed that by investing in employees' skills, the company has also assisted in their transition. Air India has also executed two rounds of a voluntary retirement scheme, in which more than 2,500 employees had opted for the same.

"We have helped them with transition," because shifting to the private sector's way of working after working years under the government "can be traumatic some times", he said. "It has been smooth, consensual and culturally transformational."

Air India has hired 5,000 people over the last 18 months and also invested in modern technology which was absent before privatisation, the airline¡¯s CEO Wilson said.

"We have hired people who have the right skills and understand how to run a complex, multi-hub airline that wasn't really present in the old Air India," he said, adding that the airline is promoting a culture of incentive for doing well.

"There is no incentive in a non-private sector organisation; there were no job descriptions, there were no metrics of success. There were no rewards for doing well and no consequences for not doing well. So, you end up with an organization where there is a malaise," he said, adding that the new management is changing the culture so that it is a performance-oriented airline that takes things like punctuality and service seriously.

In an effort to create synergy, the Tata Group is restructuring its aviation division. In order to create a low-cost airline, this included the merger of Air Asia India and Air India Express. Vistara and Air India will combine to operate in the premium segment.