The federal cabinet in its meeting today is expected to take key decisions regarding the Rs. 400 billion debt and Rs. 100 billion liabilities of the Pakistan International Airlines (PIA).
According to details, CEO PIA, Arshad Mahmood Malik, will apprise the cabinet meeting, presided over by Prime Minister Imran Khan, about the restructuring reforms introduced to transform the national flag carrier into a self-sustainable entity without seeking a bailout from the federal government.
CEO PIA will brief the cabinet about the reforms undertaken in the Food Service Division (FSD), Technical Ground Service (TGS), and Precision Engineering Complex (PEC) of the national carrier.
Moreover, strategies to increase revenue and improve human resource management of the PIA will also come under discussion during the meeting.
PIA management has been mulling over to outsource FSD at Jinnah International Airport Karachi and Islamabad International Airport. Although the move will do little to reduce the annual deficit of the national carrier, it will help to improve product quality and customer satisfaction.
PIA is also considering outsourcing the operation and management of TGS. It is also looking to outsource its courier service or partner with Speedex.
Besides, PIA is working on route rationalization, product improvement, yield enhancement, network optimization, ancillary revenue, expansion of codeshare agreements, revamping of web business portal, and special packages for online users.
Last month, PIA had also offered a Voluntary Separation Scheme (VSS) to its employees in a bid to cut down its expenses and bridge the annual deficit.
Around 3,200 PIA employees are expected to avail the VSS for an estimated Rs. 12.87 billion, whereas, the national flag carrier will save Rs. 4.2 billion on its annual wage bill.