Rationale reasons behind pilot salary cuts: Micah

By MATTHEW VARI

Wednesday, February 11, 2015 (Midweek Chronicle, PNG)

MINISTER for Public Enterprise and State Investments has explained to parliament the justifications in the steps taken by Air Niugini in restructuring the salaries of its pilots, following the mass resignation of over a quarter of its pilots.

Micah pointed out the a lot of the costs of the national airline were inherited, and contributed to the state of the airline and its performance.

“A lot of costs at ANG has been inherited over the years without any major thought been put at how we can look at rationalize the cost, improve efficiency, and improve the service of the airline domestically to cover all the ports,” Minister Micah said.

“The moves taken are also in line to look at a far more reach of the airline into the Asia pacific region for far longer destinations.”

“I want to assure the Members and the public that even though there is a restructure in salaries for pilots- it is still a competitive one for pilots in the Asia-Pacific region.”

He made reference to the practice of the airline in paying for expenses of pilots far beyond their flight work hours, especially for expatriate pilots working with the flag carrier.

“A big factor that is affecting, especially the expatriate pilots is a fact that many of them live in Cairns or Brisbane and they commence being paid from their point of accommodation,” he explained.

“The new policy is that yes they can stay in those places overseas, but their clock-in is when they start flying, and that is when we start paying them.”

“This has not gone down well with many expatriate pilots, but I think it is fair that the actual productivity is the work that should be charged from the point when they begin work.”

The Minister said that it was one of the major issues that the board and the top management have assured that the issue has been carefully managed within the airline, within human resource, and the Unions.

“Out of the 40, only 5 are nationals, and those positions have already been advertised- they will serve out their full contracts and after that the new people will come in and those people can go and find a better airline that may give them what they are not getting from Air Nuigini.”