Pakistan International Airlines (PIA) will introduce a 50 percent cut in salaries and bonuses for its aircraft engineers from next year, its spokesman said on Monday.
PIA is a state-run entity that has incurred billions of rupees of losses in the past few years, with the government trying several measures to cut down the national carrier’s annual losses and approving bailout packages to keep it financially afloat.
“The special salaries and allowances of aircraft engineers will be reduced by 50 percent from January 2021,” PIA spokesman Abdullah Hafeez Khan told Arab News. “This has been done to rationalize the resources and allowances of our engineering staff.”
As an additional measure, PIA pilots will be paid 50 hours guaranteed allowance instead of 75.
The cabinet’s Economic Coordination Committee approved PKR12.87 billion ($80.36 million), as the Aviation Division’s summary for cash support last month, as the cost of the VSS to be paid in two-and-a-half years.
The aviation sector is among the worst hit by the coronavirus outbreak, directly affecting global travel demand and forcing airlines to revise their strategies and financial plans.