In a transformative policy update, Air India, a Tata Group-owned airline, has announced a significant increase in the retirement age for its workforce, effective immediately, sources revealed on August 8, 2025. Pilots will now retire at 65 years, up from the previous 58, while non-flying staff will see their retirement age rise from 58 to 60 years. The announcement was made by Air India’s CEO and Managing Director, Campbell Wilson, during a townhall meeting in New Delhi, signaling a strategic alignment with industry standards following the airline’s merger with Vistara in November 2024.

Air India, which employs approximately 24,000 personnel, including 3,600 pilots and 9,500 cabin crew members, aims to harmonize its superannuation policies with those of the erstwhile Vistara, a former joint venture between Tata Group and Singapore Airlines. The new retirement age for pilots aligns with the maximum limit of 65 years set by the Directorate General of Civil Aviation (DGCA) for commercial pilots. Previously, Air India had extended the tenure of many pilots to 65 on a case-by-case basis, a practice now standardized across the board. However, it remains unclear whether the retirement age for cabin crew, currently set at 58, will also be revised, as no official clarification has been provided.

The decision comes in the wake of significant challenges faced by Air India, including staff discontent and retention issues. During the integration process with Vistara, a section of Air India pilots expressed frustration over differing retirement age limits, as Vistara pilots were permitted to fly until 65. This disparity had sparked tensions, with some pilots and cabin crew members reportedly leaving the airline in recent months. Sources indicate that the policy change is partly aimed at addressing these concerns, retaining experienced personnel, and ensuring operational stability amid the airline’s ongoing transformation under Tata Group ownership.

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Air India’s workforce, one of the largest in the Indian aviation sector, has been navigating the complexities of the merger, which consolidated operations and aimed to enhance the airline’s global competitiveness. The retirement age hike is seen as a step toward standardizing employee policies and improving workforce morale. However, the lack of an official statement from Air India has left some questions unanswered, particularly regarding the cabin crew’s retirement age and the broader implications for staff benefits and career longevity.

Industry experts note that increasing the retirement age could help Air India address the global shortage of skilled aviation professionals, particularly pilots, while retaining institutional knowledge. The move also aligns with trends in the aviation sector, where airlines like IndiGo have similarly extended pilot retirement ages to 65, as permitted by DGCA regulations. As Air India continues its post-merger integration and fleet expansion, this policy shift is expected to play a critical role in stabilizing its workforce and supporting its ambitious growth plans.

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