Task Force Formed to Cut PIA Expenditures

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Abbas Ali
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Task Force Formed to Cut PIA Expenditures

Post by Abbas Ali »

According to news sources, Advisor to PM on Aviation, Sardar Mehtab Ahmed Khan has formed a six-member task force to propose cuts in PIA expenditures and prepare austerity drive report within two weeks.

The task force members include CEO/CFO, Chief Commercial, Chief Technical, Capt. Amir Hashmi and in-charge supply chain management.

Mr. Abbasi also advised to reduce PIA officials' foreign trips expenditures.

Abbas
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arshad.altaf
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Re: Task Force Formed to Cut PIA Expenditures

Post by arshad.altaf »

The most difficult decision is to propose and execute laying off of unnecessary human resource. Does this committee and the government with elections looming around have the guts to do that.

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Amaad Lone
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Re: Task Force Formed to Cut PIA Expenditures

Post by Amaad Lone »

BIG EXPENSES

BANK INTEREST Cannot cut unless you pay off the debt.

SALARIES Cannot cut unless you remove the unionized staff

FUEL If you cut fuel cost you cut revenue which is already reduced thanks to PIA shutting half its international network.

ENGINEERING AND MAINTENANCE Only if you want your fleet grounded and banned from most countries

THE PIA MANAGEMENT NEEDS TO THINK OF WAYS TO INCREASE CARGO AND PASSENGER REVENUE, INCREASE LOAD FACTOR WHY FLY EMPTY SEATS FILL THEM WITH PASSENGERS EVEN PAYING LESS FARE.

Increasing revenue is crucial cutting cost will only hurt the airline.
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