PIA to Save Rs 8 Billion Annually as It Cuts Employee to Aircraft Ratio by 52%

[hydrabadi_arab]

Pakistan International Airlines (PIA) has significantly reduced its employee to aircraft ratio thanks to the ongoing structural and organizational reforms process.

Speaking in this regard, Chief Executive Officer (CEO) PIA, Air Marshal Arshad Malik, said that the national flag carrier has brought down its employee to aircraft ratio to 260 which stood at 550 in 2017. The move will enable PIA to save more than Rs. 8 billion on its annual wage bill.​

The employee to aircraft ratio of top airlines worldwide varies between 200 and 250. The addition of more aircraft in the fleet of PIA would bring down its employee to aircraft ratio to 220 this year.

Turkish Airlines has 329 aircraft in its fleet and 31,000 employees. Its aircraft-to-employee ratio is 94. Qatar Airways has 240 aircraft in its fleet and 32,000 employees making its aircraft-to-employee ratio 133. Etihad Airways has 102 aircraft in its fleet and 21,530 employees with an aircraft-to-employee ratio of 211. Emirates has an aircraft-to-employee ratio of 231 with 269 aircraft in its fleet and 62,000 employees.

No airline in the world with more than 14,500 employees with a deficit of Rs. 400 billion and liabilities of over Rs. 100 billion can become self-sustainable.

CEO PIA added that the national flag carrier had introduced a Voluntary Separation Scheme (VSS) worth Rs. 12.87 billion for its employees in September 2020 in a bid to cut down its expenses and bridge the annual deficit.

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Out of 14,500 employees of the PIA, around 2,000 have availed of the VSS. More than 800 employees were sacked on account of fake degrees while over 1,000 ghost employees were sent packing. Around 1,100 employees were fired for corruption.

PIA to Save Rs 8 Billion Annually as It Cuts Employee to Aircraft Ratio by 52%

Pakistan International Airlines (PIA) has significantly reduced its employee to aircraft ratio thanks to the ongoing structural and organizational reforms

propakistani.pk

 

[313ghazi]

Hopefully this will make them profitable. If PIA can be run as a profit making business I think we benefit from keeping it. Very few people fly directly to Pakistan.
Just did a Google and they made a profit of 2.5 billion pkr last year. This annual saving is 3x its profits.

 

[CrazyZ]

Sad legacy of the PPP's 1950s leftish British economic thought common among liberal Pakistani's. SOE's in Pakistan were created as jobs programs then passed off as industry. Only now is this being undone.

 

[313ghazi]

Also PIA owns this huge hotel in Manhattan. Surely it could be renovated into apartments and rented out?

That would provide a regular income. They could be sold in the future.

 

[CrazyZ]

Also PIA owns this huge hotel in Manhattan. Surely it could be renovated into apartments and rented out?

That would provide a regular income. They could be sold in the future.

Better to sell and buy real estate in red states or USA equities. Liberals in the USA are trying to stop land lords from making any profit off of real estate. PIA should shift its America operations to Florida (when approved)......like every one else in NY wants to. It would be cheaper as well.

 

[Pakistan Space Agency]

Why don't they just privatise the airline like other developed countries have it?

Why does every Government keep trying to bring this Frankenstein back to life?

 

[ziaulislam]

Hopefully this will make them profitable. If PIA can be run as a profit making business I think we benefit from keeping it. Very few people fly directly to Pakistan.
Just did a Google and they made a profit of 2.5 billion pkr last year. This annual saving is 3x its profits.

Then what PIA has been profitable numerous times in last 50 yrs

With don't they just privatise the airline like other developed countries have it?

Why does every Government keep trying to bring this Frankenstein back to life?

Because its still loosing money and has 400b liabilities
The news should be PIA had 8% ghost employees and 8% fake degree holders


I.e 20% or 1 in 5 were fake people

They probably were replaced by similar amount of fake members from current ruling party
Why would this occur again??

Because i dont see any 20yrs punishment for those fake degree holders

 

[Imran Khan]

Hopefully this will make them profitable. If PIA can be run as a profit making business I think we benefit from keeping it. Very few people fly directly to Pakistan.
Just did a Google and they made a profit of 2.5 billion pkr last year. This annual saving is 3x its profits.

PIA was not in loss only because of employees sir . main loss making issue is debt services of PIA .

With don't they just privatise the airline like other developed countries have it?

Why does every Government keep trying to bring this Frankenstein back to life?

we have mafia others dont have . best thing modi did was sale of air india . i wish we have such thing happen man .

 

[hydrabadi_arab]

PIA was not in loss only because of employees sir . main loss making issue is debt services of PIA .

we have mafia others dont have . best thing modi did was sale of air india . i wish we have such thing happen man .

Debt PIA toke to pay salaries while making federal govt bankrupt in process thanks to PPP. Even firing 2000 employees cost rs14 billion. Now imagine salaries+pension of all these useless leaches working in PIA. Even current ratio is way to high. Need to reduce it further down.

If Pakistan doesn't want to become next Lebanon then it needs to act now. From army to civilian govt elite, all are taking Pakistan towards brink of destruction.

 

[Imran Khan]

Debt PIA toke to pay salaries while making federal govt bankrupt in process thanks to PPP. Even firing 2000 employees cost rs14 billion. Now imagine salaries+pension of all these useless leaches working in PIA. Even current ratio is way to high. Need to reduce it further down.

If Pakistan doesn't want to become next Lebanon then it needs to act now. From army to civilian govt elite, all are taking Pakistan towards brink of destruction.

why should they act ? they have 3 nationalities they will go anywhere on bussiness jet . even their pets have two passports

 

[hydrabadi_arab]

why should they act ? they have 3 nationalities they will go anywhere on bussiness jet . even their pets have two passports

Good point, remind of general Niazi who surrendered in east Pakistan instead of fighting till death. Now these elites will run off with their children.

 

[S.Y.A]

Reduce the ratio to 100 employees per aircraft, start new routes, offer domestic flights at rates cheaper than private companies, then enjoy.

Good point, remind of general Niazi who surrendered in east Pakistan instead of fighting till death. Now these elites will run off with their children.

That was a morale issue, with the army being surrounded and cut off and outnumbered heavily. running away of our elites is pre-planned.

 

[Meliodas]

Pakistan International Airlines (PIA) has significantly reduced its employee to aircraft ratio thanks to the ongoing structural and organizational reforms process.

Speaking in this regard, Chief Executive Officer (CEO) PIA, Air Marshal Arshad Malik, said that the national flag carrier has brought down its employee to aircraft ratio to 260 which stood at 550 in 2017. The move will enable PIA to save more than Rs. 8 billion on its annual wage bill.​

The employee to aircraft ratio of top airlines worldwide varies between 200 and 250. The addition of more aircraft in the fleet of PIA would bring down its employee to aircraft ratio to 220 this year.

Turkish Airlines has 329 aircraft in its fleet and 31,000 employees. Its aircraft-to-employee ratio is 94. Qatar Airways has 240 aircraft in its fleet and 32,000 employees making its aircraft-to-employee ratio 133. Etihad Airways has 102 aircraft in its fleet and 21,530 employees with an aircraft-to-employee ratio of 211. Emirates has an aircraft-to-employee ratio of 231 with 269 aircraft in its fleet and 62,000 employees.

No airline in the world with more than 14,500 employees with a deficit of Rs. 400 billion and liabilities of over Rs. 100 billion can become self-sustainable.

CEO PIA added that the national flag carrier had introduced a Voluntary Separation Scheme (VSS) worth Rs. 12.87 billion for its employees in September 2020 in a bid to cut down its expenses and bridge the annual deficit.

Advertisement

Out of 14,500 employees of the PIA, around 2,000 have availed of the VSS. More than 800 employees were sacked on account of fake degrees while over 1,000 ghost employees were sent packing. Around 1,100 employees were fired for corruption.

PIA to Save Rs 8 Billion Annually as It Cuts Employee to Aircraft Ratio by 52%

Pakistan International Airlines (PIA) has significantly reduced its employee to aircraft ratio thanks to the ongoing structural and organizational reforms

propakistani.pk

Next should be to sterilize palpa, otherwise we will keep suffering

 

[jupiter2007]

Hopefully this will make them profitable. If PIA can be run as a profit making business I think we benefit from keeping it. Very few people fly directly to Pakistan.
Just did a Google and they made a profit of 2.5 billion pkr last year. This annual saving is 3x its profits.

As soon as it becomes profitable sell it to private party. We don’t want next government destroy it. Government’s job is to collect taxes from everyone, even from freelancers, and reduce it’s operational cost.

 

[Fioril]

Has PIA inducted any new aircrafts in past 2-3 years ?