Under the scheme, Air India employees will be offered a compensation equivalent to 35 days salary for each completed year of service and 25 days salary per year of service left.
“The board approved the VRS plan for employees involving an outlay of Rs. 800 crore on 3 July,” an executive said, requesting anonymity. “We have submitted the plan to the ministry of civil aviation and the ministry of finance.”
Air India has had rising debt costs for several years and is trying desperately to make a turnaround.
The airline currently employs about 28,000 people.