Pakistan International Airlines (PIA) has set a target of reducing the number of employees for its 29 aircraft by more than half to 7,500 to 8,000 and separating basic and non-basic functions under the voluntary separation scheme. ۔
According to the report of the newspaper, this was stated in the report submitted to the Supreme Court by the PIA administration.
According to the report, PIA currently has 14,500 employees for 29 aircraft, while Turkish Airlines has 31,000 employees for a fleet of 329 aircraft.
According to the report, overstaffing is a major concern for PIA management, with fewer employees engaging in activities that hinder other employees' productivity. Is.
The management claimed that many employees do very little or no work which also discourages the workers.
The report added that with this in mind, the right size of manpower is essential and with the approval of the federal government, the PIA administration on December 7 offered a one-time voluntary separation scheme to employees.
The Supreme Court was told that the PI management has planned to divide the employees into two categories of basic and non-basic business, as PIA is not performing well in basic business, non-basic business is also affected. ۔
So instead of running small and profitable units, they are incurring huge costs and losses which are becoming a bigger burden for the company.
The report also said that PIA had undertaken a wide range of non-core business functions including food services, technical ground services, maintenance of aircraft fleet through major engineering facility Precision Engineering Complex (PEC) and Maintenance and Speedex courier service included.
According to the report, the basic functions category includes marking, manpower, finance, flight services, procurement and after the reduction of 3,977 workers from the non-basic category, PIA will save Rs 61 billion a year. ۔
In addition, there are plans to transform engineering services into a separate business unit by entering into a joint venture with a large company, after which PIA will provide its services not only in Pakistan but also in regions like Africa and Asia where Demand for this specialty has grown significantly as a result of recent corporate scandals.
According to the management, due to various reasons, PIA does not have the capacity to perform food and beverage functions effectively.
The report added that these facilities and catering equipment are outdated, requiring significant financial investment.
Due to these problems, the quality of PIA's food production cannot be improved by more than one level as it requires improvement of basic competencies and radical change in nutritional functions.
Therefore, under the plan, PIA's food operations joint venture will be tendered in the second quarter of 2021, while the tender for equipment and infrastructure pricing is underway.
The report said that as the Precision Engineering Complex (PEC) was a strategic unit, there were very few services for the PIA, so the Prime Minister had already given an executive order to transfer the PEC to the Pakistan Air Force.
According to the management, the airline is also providing technical ground services on contract and several companies providing special services have emerged in the market.
The report also said that PIA's courier service SpeedX, whose infrastructure was spread over 74 national destinations and employed 320 people, was shut down in November 2020.
