Tata-owned airlines face chaos: After Vistara, what’s brewing turbulence at Air India Express? – Airlines/Aviation News

Air India Express, the low-cost carrier owned by Tata Group, has canceled over 70 flights on Wednesday (May 8). The cancellations are reportedly due to a protest by some cabin crew members against alleged mismanagement at the airline. Discontent among the cabin crew has been growing, especially since the beginning of the merger process with AIX Connect, formerly known as AirAsia India. Meanwhile, the civil aviation ministry has sought a report from Air India Express regarding the cancellation of flights due to a portion of cabin crew members calling in sick to protest against purported mismanagement at the airline.

It may be noted that as part of consolidating its airline business, Tata Group is merging Air India Express and AIX Connect, as well as Vistara with Air India. However, these mergers have been met with resistance from employees who allege mismanagement and inequality in the treatment of staff.

Senior Air India Express employees protest against ‘mismanagement’ 

A section of the Air India Express cabin crew, represented by the Air India Express Employees Union (AIXEU), has raised concerns about mismanagement and unequal treatment of staff. The union, claiming to represent around 300 cabin crew members, mostly seniors, alleges that mismanagement has affected the morale of the employees.

Meanwhile, passengers have also expressed frustration on social media over the sudden flight cancellations. Air India Express apologised and cited “operational reasons” for the cancellations in response to a passenger’s post about a cancelled flight.

Déjà vu for TATA management – Vistara, Air India Express navigate similar turbulence

The situation at Air India Express resembles the pilot woes faced by Vistara, another Tata Group-owned airline, earlier last month. Vistara experienced hundreds of flight cancellations and numerous delays for days last month as pilots went on mass sick leave. The root cause of these disruptions was an HR issue, specifically related to the new compensation structure for pilots. 

In response to the discontent among pilots, Vistara’s management issued an ultimatum, requiring pilots to accept the new pay structure or forgo the associated one-time payout and the opportunity to work with Air India post-merger. This ultimatum further aggravated the situation, leading to more pilots calling in sick.

The reason behind Air India Express employees’ protest is also similar to that of Vistara. A letter is doing rounds on social media, written to the chairman of Tata Group, N Chandrasekaran, in which Air India Express Employees Union (AIXEU) highlighted various grievances, including the removal of allowances such as HRA, resulting in significant salary cuts despite the airline’s consistent profitability. The letter also mentioned a lack of equality in the treatment of employees, with internal job postings being filled by external candidates, bypassing qualified internal candidates.

Airline consolidation great challenge for Tata 

These disruptions at Vistara highlight potential challenges for the Tata Group as it consolidates its airline business. Apart from merging Air India and Vistara, the conglomerate is also merging its low-cost carriers, Air India Express and AIX Connect. 

People integration, including bringing about pay parity and integrating employees from different organizational cultures, will be among the greatest challenges for the company. The 2007 merger of Air India and Indian Airlines serves as a cautionary tale, as the HR issues resulting from the merger took years to resolve and fueled lasting disaffection among employees.