PIA plots staff cuts while fleet set to grow

PIA – Pakistan International Airlines (PK, Islamabad Quaid-e-Azam Int’l) plans to halve its payroll through staff redundancies while at the same time significantly growing its fleet over the next few years, The Nation has reported. The state-owned Pakistani flag carrier hopes to reduce its total headcount from 12,900 workers to 5,600-6,000 by the end of 2021. This is a significantly lower number than 7,500, the previous benchmark set. Despite the reduction in workforce, the airline hopes to add 16 unspecified aircraft shortly, although no definite timeline was given. This would increase PIA’s total fleet to 45 active aircraft. The target ratio of staff-to-aircraft is around 130 – compared to the current ratio of nearly 450 workers per one active aircraft. PIA has already announced a voluntary separation scheme (VSS) for its employees, including pilots and engineers, with applications due by December 22. Based on the uptake, a forced retirement scheme may be enforced through the end of January 2021. Shedding 3,977 staff from non-core areas should save it PKR6.1 billion rupees (USD38 million) per annum in salaries. PIA spokesman Abdullah Hafeez Khan later told Business Recorder that perks such as free staff air tickets would also be reduced. In terms of operations, PIA plans to shift its main administration and operational headquarters to Islamabad from Karachi. The maintenance department PIA Engineering will be among the first to move by June 2021, he said. According to the ch-aviation fleets advanced module, PIA currently operates five ATR42-500s, four ATR72-500s, eleven A320-200s, six B777-200(ER)s, two B777-200(LR)s, and four B777-300(ER)s, of which two ATR42-500s and one ATR72-500 are in long-term storage. The airline recently issued a Request for Proposals (RFP) for the dry-lease of eight narrowbodies with deliveries due throughout 2021.