New management has been installed at state-owned Pakistan International Airlines (PIA) following a damaging campaign of working to rule by pilots angry over stalled contract talks.

Former banker Ahmed Saeed has replaced Sher Afghan Malek as managing director. The change came amid the pilots' action, which forced flight cancellation for 13 days. The action was called off on 20 April after management agreed to restore personal travel benefits and promised to open contract talks within one month.

Pilots claim they are paid far less than their counterparts at other airlines in South Asia and have been without a collective contract since 1998. They also say their benefits have been progressively cut, including travel perks for their families and retired personnel.

Saeed has already been successful in taking action on aircraft leases, which had been repeatedly delayed by the previous management. Late in April, PIA firmed up a deal with Cathay Pacific Airways to extend leases on five Boeing 747-300s for five years.

Source: Airline Business