Pakistan International Airlines (PIA) has received more than 1300 applications from its employees who are seeking early retirement under the Voluntary Separation Scheme (VSS). 22 December was the last day to submit applications under VSS.
The national flag carrier expected 3,000 of its employees to utilize the VSS, however, as the number of applications received is not even half, PIA will now introduce a Mandatory Separation Scheme (MSS).
Under MSS, the employees who underperformed will be laid off. These employees will not be given any financial assistance or medical package after retirement.
The airline is also planning to shift its head office from Karachi to Islamabad in phases from January 2021 to June 2021. The departments that will be initially transferred include flight services, the commercial department, the human resources division, the medical division, the corporate development department, the work division, and the supply chain management.
The management of PIA has taken inspiration from foreign airlines and devised a restructuring plan to turn it into a profit-making entity.