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Business & Finance

Restructuring Plan: PIA to shift departments from Karachi to Islamabad

  • At present, PIA has a fleet of 29 aircraft with 14,500 employees and the airline is bearing Rs 2.6 billion monthly human resource and Rs 24.8 billion annual expenses.
Published December 21, 2020

The Pakistan International Airlines (PIA) management has formulated a plan for the restructuring of the airline. Between January and June 2021, all the important departments of the national airline will be shifted from Karachi to Islamabad.

As per details, PIA has taken significant steps under the restructuring plan based on other issues including relocation of National Airline Head Office to Islamabad by 2021. According to the PIA plan, the annual expenditure of human resources will be controlled. The number will be reduced from 500 to 250.

At present, PIA has a fleet of 29 aircraft with 14,500 employees and the airline is bearing Rs 2.6 billion monthly human resource and Rs 24.8 billion annual expenses.

He further stated that 3500 employees would be offered volunteer retirement by December 2020 and based on performance, forced retirement scheme would be enforced with completion time period of January 2021. Meanwhile, the employees in all the departments would be reduced and free air tickets of employees would be decreased in order to bring the organization out of losses.

Non-core sectors will be segregated in March 2021. Voluntary retirement scheme will bring huge financial benefits to the employees. According to the plan, employees with forced retirement will not be able to avail the package of voluntary scheme. The package will be different.

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