PIA offers ‘Voluntary Separation Scheme’ to employees. Here’s all you need to know

Malik explained to the Aviation Committee that the operating cause behind PIA’s colossal losses is overstaffing.

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Pakistan International Airlines (PIA) has proposed a Voluntary Separation Scheme (VSS) to its employees in an attempt to reduce expenditures and control the annual deficit.

The Chief Executive Officer (CEO) PIA, Air Marshal Arshad Malik, revealed the scheme during a meeting between the Senate’s Standing Committee on Aviation.

According to Malik, it is impossible for an airline to become self-sustainable if it has 14,500 employees with Rs.400 Billion deficit and over Rs. 100 billion in liabilities. He further added that about 3,200 PIA employees would benefit from the VSS scheme, with an estimated cost of Rs. 12.87 billion. The national flag holders will save Rs. 4.2 billion on its annual wage bill.

Malik explained to the Aviation Committee that the operating cause behind PIA’s colossal losses is overstaffing. He said that PIA’s aircraft-to-employee proportion, in contrast to other admired international airlines, is irrational.

Some of the famous airlines with their aircraft-to-employee ratios are:

  • Qatar Airways: – 240 aircraft in its fleet and 32,000 employees with an aircraft-to-employee ratio of 133.
  • Turkish Airlines: – 329 aircraft in its fleet and 31,000 employees with an aircraft-to-employee ratio of 94.
  • Emirates: – 269 aircraft in its fleet and 62,000 employees with an aircraft-to-employee ratio of 231.
  • Etihad Airways: – 102 aircraft in its fleet and 21,530 employees with an aircraft-to-employee ratio of 211.
  • PIA: – 29 aircraft in its fleet and 14,500 employees with an aircraft-to-employee ratio of 500.
The massive difference that Malik mentioned can be noticed here.

A VSS scheme offers employees of any association a chance of voluntary resignation by getting considerable compensation beside every year of service.

The scheme is generally implemented to decrease the employee count to reduce the organization’s operating costs. VSS has been followed by several successful organizations to maintain a good reputation while ensuring that they reach their purpose.

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

  • تمام چور امپلائیز کو جیکبآباد ائیرپورٹ تین سال کی ٹریننگ پر بہیج دیں۔

  • PIA has an overstaffing problem but that is not comparable to turkish or etihad etc. Not sure why we insist on floating wrong info


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