PIA apprises PSX regarding its restructuring plan by fed govt

KARACHI: The Pakistan International Airlines (PIA) has apprised Pakistan Stock Exchange (PSX) regarding a restructuring plan of the incumbent federal government for the national flag carrier, ARY NEWS reported.

A secretary of the PIA in a letter to the PSX apprised that the government was mulling over a restructuring plan for the airline, details of which would be released after the approval of the government.

“The restructuring plan is in process in the national flag carrier for the last one year,” he said adding that they had closed down loss-making routes.

He said that the airline has launched new profit-making routes and is moving forward under the guidelines of the SAPM on Institutional Reforms Dr Ishrat Hussain.

“We are working on financial and operational targets under the plans devised by him,” the secretary said adding that the policy decisions were given a final nod by the board of directors of the PIA.

It is pertinent to mention here that under a restructuring plan, the voluntary separation scheme (VSS) extended by Pakistan International Airlines (PIA) to employees in order to allow them a compensation amount for leaving the job voluntarily ended on December 31, 2020.

According to the details shared with ARY News by PIA spokesperson, so far 2000 applications of VSS have been approved since it announced the scheme in the second week of December for two following weeks.

However, due to an encouraging response from its staffers who chose to give up their jobs voluntarily, the PIA extended this offer for one more week on Dec 22 and then for two more days as it was to expire the day before yesterday.

Its spox said the national flag carrier has already issued release letters to at least 1000 employees who signed up for the scheme.

A mandatory retirement scheme will follow the VSS, under which employees with poor performance will be laid off, the sources said.