PIA plans 4,000 layoffs

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Sat, 2001-06-02 02:12

KARACHI, 1 June — The cash-strapped Pakistan International Airlines has planned drastic measures to stem losses and tide over its financial problems. The airline plans to ground a fleet of five airbuses, lay off 4,000 employees and suspend trade union activities to allow the management to revamp the national carrier. Sources said that five of its airbuses A-300 had been grounded after faults were detected in them. The airline’s board of directors met in Karachi late Wednesday and decided to ban trade union activities. Under the airline’s law, employees enjoy certain perks and privileges and are entitled to medical cover. The management feels that unless trade unions are banned, the airline will not be able to overcome its problems. A spokesman for the management said yesterday that the airline needed huge money to tide over the problems. “The airline, for the next three years, will have to be run on commercial lines” he said. (S.H.)

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