PIA announces to extend duration of VSS scheme

KARACHI: Pakistan International Airlines (PIA) on Tuesday announced to extend the time limit of the voluntary separation scheme (VSS) availed by its employees, ARY NEWS reported.

The decision was made in a meeting headed by PIA Chief Executive Officer (CEO) Air Marshall Arshad Malik. An official notification in this regard was also issued during the meeting.

The notification issued by the Human Resource department of the national flag carrier read that the employees could now avail from the VSS scheme uptil December 29.

“We have already received funds of Rs 12 billion from the federal government for payments under the VSS programme,” the PIA CEO said.

Earlier in the day, it was reported that more than 1,300 Pakistan International Airlines (PIA) employees have submitted applications seeking early retirement under the voluntary separation scheme (VSS) the airline lately introduced to cut its employees to reduce cost.

Well-placed sources told ARY News that over 1,300 applications have been received since the scheme was brought in.

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

Read More: PIA to cut employees to 7,500, get 6 new aircraft next year

They said the management of the national flag carrier, taking a leaf from foreign airlines’ book, has devised a restructuring plan to turn it into a profit-making entity.

Besides laying off almost half its employees, Pakistan International Airlines plans to move its head offices, including the flight services division, commercial department and human resource divisions, to Islamabad by the end of January as part of the restructuring plan.