The Pakistan International Airlines (PIA) has embarked on a cost cutting journey. Reports suggest that PIA has decided to discontinue direct flights to the United States, whereas in this cost journey some employees will also be asked to leave the national carrier. This move depicts that the new management is serious towards turning PIA into a profitable airline. The funds that will be saved by laying off redundant employees and discontinuing flights to non-profitable routes, will be used for elevating the service standards.
According to an official source from PIA, the board of directors and the government have given a green signal to undertake cost cutting measures. The new management of the national carrier has already started cost cutting and in the process terminated the services of its Chief Human Resource Officer.
The source also revealed that the management has directed the human resource (HR) department to prepare a list of surplus employees. The list will be made in consultation with every department to ensure that only those employees make it to the list who are not contributing positively in the growth and development of the company. The HR department will present the list to the senior management within a week.
The list once completed, will be presented to the board. The board will then sent these employees to the surplus pool.
According to reports, direct flights to the United States will be discontinued from October 31, 2017. It is pertinent to note that PIA is operating a total of five weekly flights to the USA, but will not accept bookings via its reservation system after October 31. According to the official, the national flag carrier’s accumulative loss is over PKR 300 billion.
“PIA is the first airline which bought long haul Boeing 777 in order fly directly to the USA. However, USA backed out and direct flights were not allowed. Now PIA flights have to land in the UK for security and migration checks and cargo reloading. This causes huge losses to PIA,” informed the source.