Cash-strapped PIA likely to ground more aircraft

[Jf Thunder]

Air Marshals have ruined the PIA
but hey, at least when it will be privatized, the Air Marshal is going to loose his job as well,

 

[VkdIndian]

How will the revenues earned by CAA solve the problems of a mismanaged PIA?

Yup. Not linked to each other.

Closure of the airspace by Paksiatn affected PIA also adversely.
That’s was the context from another thread.

 

[VkdIndian]

PIA was had issues for decades

That is agreed. The closure of airspace just added to the losses, hence very relevant.

Pakistan has very few flights over india

PIA currently serves 27 international destinations. Out of that 7-8 were to the east. That accounts for 25% international business. That can be quite a lot for a sick airline like PIA.

The closure of airspace had impact across the world on all the airlines that traverse this airspace (400 flights per day) and that would have resulted in pressure on Paksiatn. Pakistan doesn’t stay in an unconnected world. And many of the carriers belonged to powerful nations that can wring Paksiatn’s neck in many other ways.

CAA was also losing money on overflight rights and other charges. Hence, having a mentality of cutting one’s one hand in a hope that neighbour will loose both, is not the smartest of ideas. Especially, when the neighbour’s hands are much stronger.

People demanding reimplementation of closure aren’t connected or aware of the realities.

 

[313ghazi]

Its easy to say sell it off but who’ll buy it.

I am thinking even if its sold for free who’ll take the massive debt.

Pakistan doesn’t have TATA and even if it did considering establishment adhocism no investors in their right mind will dare investing.

Best is just wind it up, sell all assets and work towards giving its employee a golden handshake.

It's got decent potential. Yes it needs some investment, but it has some profitable routes and private owners could get rid of like two thirds of the workforce. It's massively overstaffed, political parties, especially PPP use PIA jobs as rewards for loyalists and as a way to launder money into their own accounts through ghost employees who are collecting wages but don't exist.

 

[DGMO]

The most startling and alarming stat in this article is:

Regrettably, PIA serves only a fraction of the country’s population, accounting for less than 3pc of citizens using air travel while consuming significant public funds.

How the life support machine hasn't been switched off such a failed entity just underlines the corruption and mismanagement of the wider country.

 

[PradoTLC]

That is agreed. The closure of airspace just added to the losses, hence very relevant.

PIA currently serves 27 international destinations. Out of that 7-8 were to the east. That accounts for 25% international business. That can be quite a lot for a sick airline like PIA.

The closure of airspace had impact across the world on all the airlines that traverse this airspace (400 flights per day) and that would have resulted in pressure on Paksiatn. Pakistan doesn’t stay in an unconnected world. And many of the carriers belonged to powerful nations that can wring Paksiatn’s neck in many other ways.

CAA was also losing money on overflight rights and other charges. Hence, having a mentality of cutting one’s one hand in a hope that neighbour will loose both, is not the smartest of ideas. Especially, when the neighbour’s hands are much stronger.

People demanding reimplementation of closure aren’t connected or aware of the realities.

lol


you do realise when you lost the argue to bringing stupid and irrelevant facts means nothing but confirmed of a complete own age..


again it is simple india started the drama on 26 feb 2019, it got kicked the balls and its wallet....

 

[VkdIndian]

you do realise when you lost the argue

Really?
You think IK opened the air space out of goodwill? Someone must have had his balls in their hands that made him do that. Moreover, the numbers very clearly say who lost the argument.

But numbers don’t mean anything to some of you. Clearly visible in handling of PIA and your country’s economy. You are no different.

All bluster. No substance.

 

[hembo]

That is agreed. The closure of airspace just added to the losses, hence very relevant.

PIA currently serves 27 international destinations. Out of that 7-8 were to the east. That accounts for 25% international business. That can be quite a lot for a sick airline like PIA.

The closure of airspace had impact across the world on all the airlines that traverse this airspace (400 flights per day) and that would have resulted in pressure on Paksiatn. Pakistan doesn’t stay in an unconnected world. And many of the carriers belonged to powerful nations that can wring Paksiatn’s neck in many other ways.

CAA was also losing money on overflight rights and other charges. Hence, having a mentality of cutting one’s one hand in a hope that neighbour will loose both, is not the smartest of ideas. Especially, when the neighbour’s hands are much stronger.

People demanding reimplementation of closure aren’t connected or aware of the realities.

@epebble

PIA had flights to Hong-Kong, Indonesia, Malaysia, Myanmar, Nepal, Philippines, Singapore, Thailand etc. in some point in the past.

PIA records 30 pct increase in revenue in 1st half of 2019: report​

New profitable routes were launched in 2019, while profitable routes such as Karachi-Toronto saw increased frequencies. six unprofitable routes were discontinued in 2019. In April 2019, PIA claimed that its revenues almost matched operating costs. Later that year following a visit of TSA officials to the Islamabad International Airport in July 2019, PIA expressed hope that non-stop flights to the US would be permitted. In August 2019, PIA laid off 1,000 "redundant employees." In September, PIA announced that it would lease additional aircraft to increase the airline's fleet to 37 by 2020, and 45 by 2023. By the end of 2019, PIA reported a 41% increase in year-on-year revenue due to discontinuation of unprofitable routes, reintroduction of grounded aircraft, and a sharp increase in cargo-space utilization.

In November 2020, PIA shut down its courier arm, SpeedEx, whose infrastructure was scattered over 74 domestic destinations, and laid off its 320 employees.

In December 2020, PIA announced a plan to lay off half of its employees and transferred its engineering arm, Precision Engineering Complex (PEC), to the Pakistan Air Force.

The fake Pilot license fiasco also paid a role in the debacle in 2020 from promising 2019.

 

[VkdIndian]

PIA had flights to Hong-Kong, Indonesia, Malaysia, Myanmar, Nepal, Philippines, Singapore, Thailand etc.

And India too.

 

[HAIDER]

It is high time the much suffering beast is euthanized instead of being allowed to continue to suffer and die a painful death. If a careless or absentminded person puts an aircraft into service without spare parts or service, it will endanger the lives of many. Reading this news, I wonder who the daredevils are who are willing to fly in these rust buckets.

Massive privatization is coming ..from PIA to Steel mill..... if no transparency , then someone walkout with super wealth ...

 

[Shabi1]

No use selling it as the debts will remain with the GOP (sovereign guarantee) and any buyer can simply start selling assets to pull out money and eventually shut operations.

PIA needs new efficient aircraft and downsizing of staff to become sustainable which is not happening. Enough attempts at restructuring and subsequent privatization have been made and nothing has worked, PIA should be immediately shut down so additional loans aren't added and GOP auction off assets to pay off as much of debt possible. Private airlines will expand to pick up the additional traffic and could absorb genuine employees and the worthwhile assets. Global market for trained airline staff is good. If Gov/establishment still thinks they need own airline for any strategic routes they can start on a clean sheet one.

 

[Olympus81]

PIA issues have been multi fold.

Strategically they’ve entered into code sharing agreements that were detrimental to their profitability.

Chronic overstaffing due to PPP.

Politicized organization.

In light of above the best course of action is to sell its asset, golden handshake to its employees, and profitable routes offered to other airlines in return for hard cash (nor sure if this is possible) and say bye bye.

Not knowledgeable in airlines business as some indian aviation experts on this thread.

 

[Dalit]

Another success story.

 

[HerbertPervert]

No use selling it as the debts will remain with the GOP (sovereign guarantee) and any buyer can simply start selling assets to pull out money and eventually shut operations.

PIA needs new efficient aircraft and downsizing of staff to become sustainable which is not happening. Enough attempts at restructuring and subsequent privatization have been made and nothing has worked, PIA should be immediately shut down so additional loans aren't added and GOP auction off assets to pay off as much of debt possible. Private airlines will expand to pick up the additional traffic and could absorb genuine employees and the worthwhile assets. Global market for trained airline staff is good. If Gov/establishment still thinks they need own airline for any strategic routes they can start on a clean sheet one.

Privatization always comes up as a strategy to tackle the issue, but never happens. It's just a delay tactic to wait out the government in power. The only solution is to dissolve PIA completely and sell its aircraft. This way, the government won't be hemorrhaging anymore money operating the airline and the debts can be paid off.

 

[ziaulislam]

You think anyone will buy this tar baby which has a fleet of barely airworthy planes?

Yes if it's not debt laden

Why?

Market access and infrastructure chain

Reason why no one wants to get Pia isn't the plans (some of them are new) it's it legacy 500b debt