PIA Restructuring Plan

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Abbas Ali
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PIA Restructuring Plan

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PIA Restructuring Plan

PIA Current Situation


Total Manpower Strength: 14,500
Total Aircraft: 29

Human Resources Cost:
PKR 2.06 billion per month
PKR 24.8 billion per year

Aircraft to Employee Ratio Comparison with international carriers

Airline Name: Qatar Airways
Number of Aircraft: 240
Number of Employees: 46,000
Aircraft to Employee Ratio: 191

Airline Name: Emirates
Number of Aircraft: 269
Number of Employees: 62,356
Aircraft to Employee Ratio: 231

Airline Name: Turkish Airlines
Number of Aircraft: 329
Number of Employees: 31,000
Aircraft to Employee Ratio: 94

Airline Name: Etihad Airways
Number of Aircraft: 102
Number of Employees: 21,530
Aircraft to Employee Ratio: 211

Airline Name: PIA
Number of Aircraft: 29
Number of Employees: 14,500
Aircraft to Employee Ratio: 500

PIA aims to achieve ratio of 1:250

Human Rationalization Plan

Step – 1
Offer Voluntary Separation Scheme(VSS) to 3500 Employees - Deadline – December, 2020

Step – 2 Mandatory Separation Scheme (MSS)based on performance / discipline - Deadline – January, 2021

Step – 3 Separation of Non Core Functions - Deadline – March, 2021

Step – 4 Fast Track across the board Accountability - Deadline – March, 2021

a. Initiation/completion of departmental investigations / Inquiries

b. Aggressive perusal of legal cases in courts

c. Speeding up investigations at NAB & FIA

Step – 1

Voluntary Separation Scheme (VSS) to 3500 Employees

Implementation Status

VSS has been launched on 07 December, 2020 with the final date of 22 December, 2020 to opt for the scheme.

Effort is being made to let the employees get separated in a dignified way with good financial package.

Mandatory Separation Scheme (MSS)

Implementation Status


* If the separation of required number of 3500 employees is not met through VSS, then MSS will be launched soon after VSS.

* All departments / categories of employees of PIACL will be rationalized to achieve the required number of 3500 employees.

* The excess employees will be mandatorily retired based on performance, discipline and value addition of the employees.

* The mandatorily retired employees will not be offered VSS financial package and medical / passage (air tickets) facilities will not be offered to them post retirement.

Step – 3

Separation of Non-core Functions

Implementation Status

Food Services - The tender process has started. Manpower will be mandatorily retired and transferred to the JV company (if agreed by JV company).

Technical Ground Services (TGS) - The tender process has started. Manpower will be mandatorily retired and transferred to the JV company (if agreed by JV company).

Engineering Base Maintenance - The tender process has started. Manpower will be mandatorily retired and transferred to the JV company (if agreed by JV company).

Precision Engineering Center (PEC) - The PEC’s shifting to PAF is under process. Employees will no more be PIA employees.

Speedex (Courier) - Speedex has been closed on 26 November, 2020 and employees have been laid off.

Step – 4

Fast Track across the board Accountability

Implementation Status

Initiation / completion of Departmental investigations /inquiries.

Central Disciplinary Units have been made at major stations to wind up the disciplinary processes at a faster pace and punish the culprits as per rules for maintenance of discipline.

Aggressive perusal of legal cases in courts

Eminent lawyers have been engaged to pursue the pending court cases especially the interim stay order cases so that employees who have breached Company’s rules and regulations are brought to speedy justice.

Speeding up investigations at NAB & FIA

NAB and FIA are being pursued to conclude the PIACL cases at the earliest especially of those employees who were engaged in corruption and embezzlement.

Corporate Restructuring Plan

Shifting of PIA Head office to Islamabad


Shifting of following Divisions to Islamabad with timelines.

By end January, 2021:

a. All Divisions of Commercial Department
b. Divisions of HR including Legal, Industrial Relation
c. Flight Services Division

By end February, 2021:-

a. Flight Operations (including Scheduling) & Medical Division
b. Corporate Development Department
c. Works Division
d. Supply Chain Management

By end March, 2021:

a. Internal Audit
b. Corporate Secretariat
c. Finance Department

By end June, 2021:

a. Engineering Department

Cost Saving Plan

Already Implemented:

a. Allowances Rationalization
b. Duplication of Allowances (curtailed)
c. OCS TA/DA Revision

Under Process:

a. Medical Facility:- Provisioning of Medical facility is a big expense. Coordination is being done to provide the Government issued “Sehat Card” to the employees with discontinuation of present model. If the option of “Sehat Card” is not materialized, the neither Government hospitals will be taken on panels (instead of expensive private hospitals) or nominal medical encashment will be made part of salaries.

b. Passage (air tickets) Facility:- Passage facility is being rationalized to extend the same facility to all cadres of employees. The number of tickets authorized to employees are being reduced as these contribute to indirect expense in terms of fuel expense.
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flyingsystem
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Re: PIA Restructuring Plan

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Best of luck to PIA, they’ll need it.

TAILWIND
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Re: PIA Restructuring Plan

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When is the burial :D :D

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Re: PIA Restructuring Plan

Post by Abbas Ali »

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Cartoon by Jawed Iqbal in December 21 edition of Urdu daily "Jang" on five hundred employees per aircraft in PIA mentioned in airline's restructuring plan.

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Re: PIA Restructuring Plan

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Today, Advisor to the Prime Minister on Institutional Reforms and Austerity Dr. Ishrat Hussain gave briefing to Prime Minister Imran Khan on restructuring PIA.

Prime Minister directed PIA officials to quickly complete consultations with parties involved for restructuring the airline.

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Re: PIA Restructuring Plan

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PIA restructuring plan summary will be presented at Economic Coordination Committee (ECC) meeting on March 31.

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Re: PIA Restructuring Plan

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Restructuring of Pakistan International Airlines Corporation Limited (PIACL) is part of the agenda of Economic Coordination Committee (ECC) of the Cabinet meeting scheduled to take place on April 7.

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Re: PIA Restructuring Plan

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Today, Economic Coordination Committee (ECC) approved/recommended PIA Restructuring Plan after resolving the issue of tax dues to be paid by the airline.

Final decision to approve PIA Restructuring Plan recommended by ECC to be made in federal cabinet meeting.

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Re: PIA Restructuring Plan

Post by Amaad Lone »

Same plan that Nawaz Sharif tried a few years ago called PIA1 and PIA 2

Now its called PIA good and PIA bad.

Toxic loans/liabilities of around 457 billion goes to bad PIA with "non core" assets which basically means hotels, properties, maybe even engineering.

Good loans/liabilities of 125 billion goes good PIA with fleet and some other assets.

Nawaz Sharif should have done it back in 2015 and PIA would have been better off today.
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Re: PIA Restructuring Plan

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Federal Cabinet meeting on April 20 to receive briefing on PIA Restructuring Plan from Advisor to the Prime Minister on Institutional Reforms and Austerity Dr. Ishrat Hussain.

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Re: PIA Restructuring Plan

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Briefing on PIA Restructuring Plan is part of the agenda of federal cabinet meeting to be chaired by Prime Minister Imran Khan on April 27.

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Re: PIA Restructuring Plan

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Propoal Given to Divide PIA Into "Old PIA" and "New PIA"

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Today, Federal Information Minister Chaudhry Fawad Hussain at a press briefing in Islamabad gave information about briefing on PIA Restructuring Plan received by federal cabinet meeting chaired by Prime Minister Imran Khan today.

The Information Minister informed:

* PIA annual operational loss has been reduced to 1 billion rupees from 57 billion rupees.

* PIA's main problem is its accumulated loss of 460 billion rupees.

* The airline has high ratio of 450 employees per aircraft.

* A proposal has been given to divide PIA into "Old PIA" and "New PIA". The "New PIA" will be managed/run more efficiently.

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Re: PIA Restructuring Plan

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The Federal Cabinet in a bid to pull out cash-strapped PIA from financial crisis discussed dividing the airline into two companies new and the old PIAs. but sent the summary to Economic Coordination Committee (ECC) again for a few changes.

Earlier this month, the ECC had approved a restructuring plan of the PIA that includes splitting the entity into two, slashing about 25 percent of employees.

In ECC meeting, Adviser to the Prime Minister on Reforms and Austerity Dr. Ishrat Hussain presented a plan for amortization of 457 billion rupees worth of liabilities by Financial Year 2023. Of this, the ECC had approved absorbing about 202 billion rupees of liabilities as federal government equity in PIA during the current fiscal year, for being a non-cash transaction.

An official statement issued after the ECC meeting had said Dr Hussain made a detailed presentation on "human resources and operational restructuring" of PIA and suggested various options for restructuring, including measures to minimize losses and transform PIA into a financially viable airline. These included human resources restructuring through Voluntary Separation Scheme (VSS), hiring aviation experts, fleet modernization, routes rationalization, product development and revenue enhancement measures.

After detailed consultation, the ECC recommended the restructuring plan of Pakistan International Corporation Limited (PIACL) for onward submission to the cabinet.

https://epaper.dawn.com/DetailImage.php ... 21_012_004
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Re: PIA Restructuring Plan

Post by arshad.altaf »

PIA نصف ملازمین کو فارغ کردے گی

کراچی (نیوز ڈیسک)پاکستان انٹرنیشنل ایئرلائنز کارپوریشن اپنے14ہزار ملازمین میں سے نصف کو فارغ، اپنے چند بیڑے کی تجدید اور ایک دہائی سے زیادہ عرصے میں پہلی بار منافع بخش بننے کے لئے مستقل طور پر نقصان اٹھانے والے راستے بند کردے گی۔

وزیر اعظم عمران خان کے مشیر عشرت حسین کا کہنا ہے کہ پاکستان کی کابینہ نے کیریئر کی تنظیم نو کی منظوری دے دی ہے۔

ان کا کہنا تھا کہ اس نے اپنی بیلنس شیٹ کو بہتر بنانے کے بعد ایئرلائن میں 26 فیصد اسٹیک کی فروخت یا آؤٹ سورسنگ مینجمنٹ کنٹریکٹ پر غور کرنے کی بھی درخواست کی ہے۔ یہ منصوبہ ماضی میں حیات نو کی کوششوں کی پیروی کرتا ہے جو احتجاج کرنے والے ملازمین یا سیاسی مخالفت کے ذریعہ رک گئی تھیں۔

حسین کا ایک حالیہ انٹریو میں کہنا تھا کہ اس مرتبہ امارات یا اتحاد یا قطر کی طرح بننے کے کوئی حوصلہ مندانہ منصوبے نہیں ہیں۔

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Re: PIA Restructuring Plan

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Cartoon in April 30 edition of English daily ""DAWN".

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