The decision has come after SAI in recent times having been beset with a spate of regulatory and taxation issues, with the thorny ones involving the airline’s head office being sealed on non-payment of tax.
The reduction in fleet size would be followed by curtailing the number of employees as well as routes and destinations the SAI operates on.
Presently the airline fleet has 18 aircraft, with six of these on long-term lease from the Jordanian Airline – along with the cabin and cockpit crew. The latter’s contracts would be terminated after their duration runs out, reports in a section of the media suggest.
The sources claim, following the reduction in its fleet size, around 50 percent of the cabin crew and other staff members would be laid off, with their salaries transferred after August.
As to what prompted such drastic measures, the source responded that the airline business is tightly regulated – with extremely low margins. In these cases, when you are already facing financial issues, you cannot keep running such a business. Furthermore, the source also added that the disputes with CAA and FBR have also been a deciding factor in Shaheen’s current troubles.
The Aviation industry is working on only 1% profit and it is very difficult to grow in a challenging environment, especially in a country such as Pakistan. The country has a massive population and there are not more than a total of 100 aircraft combined.
SAI spokesperson, Zohaib Hassan, confirmed the news and said that massive restructuring is underway. However, he denied that the salaries of the employees will be deferred till September.
Sad to Hear that, but working on 1% margin is not digestible at all.
May SAI grow again ….
Hope Shaheen Air will resume its services soon, May Allah swt help all those who are directly or indirectly dependent on this air line. Inshallah this airline will progress if Niyat of all employees
Are good and they should work hard to bring back this airline on its feet, Ameen
We always forget our responsibilities once we got empolyment and always look forwards towards
Benefits. So it is requested to please first pay full attention on your responsibilities.
Look at in western world where senior staff of airline carry their own luggage their hardly any pick and drop. If we have this facility pls do not mis use it.
Thanks for your time and attention.