Retired Air India staff entitled to health cover

In a huge relief for retired Air India employees, the government has finalised a solution to the key issue of providing medical insurance to all retired employees of Air India - one of their key concerns. "Retired employees will get CGHS facility for their OPD requirement and National Health Insurance Scheme for their hospitalisation requirements," said a top government official, who did not want to be identified.

The number of retired employees at Air India is at about 50,000, of these, about 30,000 have opted for the post-retirement medical scheme.

The official quoted above added that this is not a pre-condition for the transfer of the airline to its new owners - Tata Group - but was a big concern of retired employees.

The government has assured retired employees that their medical benefits will continue and also provided job protection to all existing employees for a period of 12 months from the transfer of the airline.

Air India has about 10,000 employees on its rolls as on date and about 5,000 of them will retire in the next five years.


The Tata Group won a bid (through a holding company Talace) to buy 100% stake in Air India along with AI Express and 50% stake in ground handling company AISATS and the government plans to transfer ownership to the Tata group before the end of this month.

While key approvals for the deal have come, the transfer cannot happen now owing to delays in finalisation of the company's balance sheet and some approvals from international regulators as Air India has international operations.

After the handover, the Tata Group is likely to operate three airlines - Air India, Air India Express and Vistara - after the government transfers the airline to the group and upon merger of AirAsia India and AI Express.

The group, for the time being, plans to continue with Vistara as a separate entity, as SIA is not on board for the AI deal. Vistara is a 51:49 joint venture between the Tata Group and SIA. SIA, however, had agreed to be part of the plan to acquire Air India but did not want to continue after Covid impacted their business and funds dried up.

As part of the revival plan, the Tata Group is also blueprinting a 100-day plan for Air India to improve the operational and service standards of the airline that includes its on-time performance, as well as issues related to passenger complaints and call centres.