Air India on Wednesday reduced eligibility age from 55 to 40 and announced cash incentive to encourage a significant section of its employees to voluntarily retire. 

The Tata Group took control of Air India on January 27 after successfully winning the bid for the airline on October 8 last year. 

Since April, the airline’s chairman, N Chandrasekaran, has rejigged the top management of the airline, bringing in senior- and middle-level executives who have worked in other companies of the Tata Group, such as Tata Steel and Vistara. 

In a communique sent to employees on Wednesday, the airline said that according to the existing regulations of Air India, permanent employees could avail themselves of voluntary retirement if they were of 55 years of age or more and they had worked in the carrier for 20 years. 

As an additional benefit, the carrier was reducing the age eligibility from 55 years to 40 years for cabin crew members, clerical and allied staff and unskilled employees, it noted. 

“An ex-gratia amount will also be provided to the aforementioned employees, who apply for voluntary retirement from June 1, 2022, to July 31, 2022, as a one-time benefit,” it said. 

Also, employees who apply for voluntary retirement between June 1 and June 30 would also receive an additional incentive over and above the ex-gratia amount, it added. 

“The acceptance of your application for the above benefits and the date of release shall be subject to management’s discretion,” it stated.