There is no need for the reduction in workforce as the airline is understaffed by around 2000 employees. Given the situation, the management should fill up the vacancies if it actually implements the VRS, he said. The Indian Airlines is overstaffed at the top level with the airline having 33 directors spending around 5 lakh per month. No other airlines in the world has as many as 33 directors, said Soman.

Indian Airlines hasprepared a draft of VRS ahead of its proposed disinvestment plan. The VRS, which is to be submitted to the airlines' board shortly, aims at harnessing the manpower effectively. The VRS, if okayed by the board, is applicable to all the employees who have completed 10 years of service or above 40 years of age. However, pilots and engineers are excluded from the scheme, it is learnt. The proposal for the VRS comes close on the heels of the airline launching a product upgradation exercise to ensure maximum value for money for passengers which include a "walk in bonanza" scheme.

The scheme, conceived following the success of metro shuttle fights, will initially be operational from Mumbai-Calcutta, Calcutta-Chennai, Chennai-Bangalore and Delhi-Guwahati routes.

IA has also believed to have floated a global tender for four A-320 aircraft to be taken on lease. The airline expects the aircraft to be taken on dry lease (only aircraft minus the crew) for adding additional 1,000 seats in the winter schedule.