Pakistan International Airlines (PIA) has finalised a downsizing plan in the coming few years by stopping induction of new recruits, making 1,500 employees who are involved in disciplinary cases or fake degree issues redundant and formulating a voluntary separation scheme which is yet to be approved.
This was stated by GM Public Affairs and Brand, PIA, Abdullah Hafeez Khan, to Business Recorder. He further stated if non-core staff (engineering, catering and ground handling crew) is separated from core employees the ratio of workers against one aircraft declines to 135.
Khan maintained that employee per aircraft ratio is not technically an international yardstick as it depends on the airline adding that as far as PIA is concerned, it has its own handling, catering, support equipment and airport services and thus the employees are counted together.
He said PIA's draft business plan includes measures to turn the organization from a loss making entity into a profitable one through setting up strategic business units and making them independent.
When asked about PIA CEO Arshad Malik who has been restrained from doing work by the Supreme Court, he said Arshad Malik has appealed the decision in Supreme Court and hearing is fixed on January 21, 2020.
Total accumulated losses of PIA were estimated at around Rs 438 billion in December 2018 and it employs 12000 permanent employees and 3400 daily wagers which makes 400 employees per aircraft ratio.
The federal government had committed to International Monetary Fund (IMF) under the $6 billion Extended Fund Facility to complete an audit report of the financially troubled PIA by the end of December 2019-a target missed by the government.
Sources maintain that employee-related costs form the biggest share in PIA's expenses. Global website Airfleets Net reports only 32 active aircraft for PIA, translating into an employee to aircraft ratio of 481, which is almost three times higher than Air India (165) and almost four times more than Turkish Airlines (116).
Emirates, with a fleet of 270 aircraft, has employee-plane ratio of 119 to one. For Turkish Airlines, another important regional carrier with 304 planes, it is far lower - at 116 employees per plane.
PIAs average fleet age is 13 years old almost double that of Emirates, Qatar and Etihad airlines. With poor maintenance added to the mix the predicament of PIA's old worn-out aircraft is a source of concern.
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