Air India offers share benefit scheme to employees

Air India has initiated an Employees Share Benefit Scheme, under which permanent employees can purchase equity in the airline. This is not an employee stock option scheme (ESOP), Air India clarified.

All permanent employees of Air India and Air India Express appointed before January 27, 2022, the date of takeover by Tata Sons, will be eligible for the ESB scheme.

“In accordance with the share purchase agreement signed as part of the disinvestment process, Air India has initiated the Employee Share Benefit Scheme for eligible employees who were in service with the airline on the date of privatisation,” said a spokesperson from Air India.

Employees can purchase up to 3% equity or 979 million shares at `0.27 per share. News agency PTI said quoting a source that the price is at a discount compared to the book value of `0.87-0.9 per share at the time of the acquisition.