PIA announces 50% pay cut for engineering staff

He said the move would be executed to a "more realistic level" depending on the employees' licensing and qualifications.

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  • Pakistan International Airlines (PIA) has announced a 50% cut in salaries for its engineering staff next year.

Around 217 Pakistanis to be airlifted by PIA from Chengdu, China to Islamabad on Thursday

Pakistan International Airlines (PIA) will initiate a 50% cut in salaries and bonuses for its aircraft engineers next year, the airline’s spokesman said on Monday.

“The special salaries and subsidies of aircraft engineers will be reduced by 50% from January 2021,” PIA spokesman Abdullah Hafeez Khan announced on Monday.

“This has been done to rationalize the allowances and resources of our engineering staff.” 

He said the move would be executed to a “more realistic level” depending on the employees’ licensing and qualifications.

”Many PIA engineers were receiving allowances for equipment that is not part of our fleet currently, such as the Boeing 747 and a few Airbuses. This move will not save many finances to the organization, but it will bring a realistic and fair allowance structure.”

As an extra measure, PIA pilots will be paid 50 hours ensured allowance instead of 75.

“Pilots were receiving flying allowances with a minimum guarantee of 75 hours, which have also been accounted for, and now they will get benefit after flying for 50 hours,” Khan said, adding that the airline was going through “many changes” to improve performance and viability.

“We have just launched a Voluntary Separation Scheme (VSS) via which we forecast 2,500 people to benefit. It is in the pipeline as all the arrangements have been finalized, and notification has been released today. The persons who will utilize the scheme will leave PIA on the 31st of December, 2020.”

The cabinet’s Economic Coordination Committee endorsed PKR12.87 billion ($80.36 million), as the Aviation Division’s outline for cash support last month, as the cost of the VSS to be financed in two-and-a-half years.

The aviation sector is among the worst to be hit by the COVID-19 pandemic, directly affecting global travel demand and forcing airlines to revise their financial plans and strategies.

What are your views on this? Share with us in the comments below.

  • That is good see the difference when you got the right people in the top Prime Minister level then reforms start working. 40 years of corrupt mafia has destroyed every thing


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