Pakistan converts PIA into a limited company

[ArsalanKhan21]

Govt has brokered deal to sell PIA to UAE rulers: PPP senator - The Express Tribune


Govt has brokered deal to sell PIA to UAE rulers: PPP senator
By Our Correspondent
Published: December 8, 2015

PHOTO: AFP

ISLAMABAD: The government has brokered a deal through a close relative of Prime Minister Nawaz Sharif to sell Pakistan International Airlines (PIA) to Abu Dhabi rulers, Senator Saleem Mandviwalla, former finance minister, claimed on Monday, terming the on-going privatisation process a facade.

In a statement issued on Monday, the Pakistan Peoples Party (PPP) senator claimed that the motive behind issuing a Presidential Ordinance to privatise the airline was to facilitate a deal that the government has already struck with the Sheikhs of Abu Dhabi.

PIA workers decry executive ordinance for privatisation

Mandviwalla remained finance minister for a brief period during the last PPP tenure and currently heads the Senate Standing Committee on Finance and Revenue.

The government on Monday also increased PIA’s authorised share capital from Rs30 billion to Rs54 billion after it converted the Rs23.6 billion loan to the airline into equity.

“This deal has been brokered by Chaudhry Muneer, a relative of PM Nawaz Sharif and Shujaat Azeem, Special Assistant to Prime Minister on Aviation,” claimed Mandviwalla.

National carrier: PIA workers decry executive ordinance for privatisation

He said the Supreme Court of Pakistan has questioned the appointment of Azeem as a special assistant to the PM, ordering to remove him. He requested the apex court to take a suo motu notice of the privatisation plan and give a stay order.

The senator’s statement may give a new twist to the PIA privatisation, which could undermine the government’s efforts to sell the airline by June next year under a condition of the International Monetary Fund.

He gave the statement just 48 hours after the government promulgated an ordinance to remove the legal hindrance to PIA privatisation.

PIA privatisation: As IMF deadline looms, govt to bypass parliament again

He said the ordinance is an indication that the government was feigning transparency in the privatisation process. He urged that a judicial commission should conduct an audit prior to privatisation.

Furthermore, he pressed political parties as well as workers’ unions to protest against the on-going deal, as he contends that it goes against the national interest and there was no representative of labourers present to oversee the deal.

Mandviwalla claimed that the government has already struck a deal with a Gulf airline. “In my view, the privatisation transaction has already been done and rest is just formalities,” he said while talking to The Express Tribune.

He said the government has already unofficially conveyed this to the financial advisers hired for carrying out the transaction.

Privatisation Commission Chairman Mohammad Zubair was not available for comments

Published in The Express Tribune, December 8th, 2015.

 

[Clutch]

Honestly i don't care who they sell this pile of crap airline to. Get rid of it! Sell it to the monkeys in Lahore zoo for all i care. This "airline" is a corrupt money pit.

Sell it... Disband it... Trash it... Just send it into the dustbin of history where it belongs.

 

[Rashid Mahmood]

Privatizing a national strategic asset is a grave mistake.
Some national assets cannot be privatised like, PSO, PR, PIA, WAPDA etc.

 

[ArsalanKhan21]

Privatizing a national strategic asset is a grave mistake.
Some national assets cannot be privatised like, PSO, PR, PIA, WAPDA etc.

Then PIA should hire 20 million more employees to cut unemployment and the Pakistani government instead of building schools should use that money to pay salaries of lazy airline staff. Unlike Railways that require huge infrastructure built over decades an airline can be created in one or two months by buying/leasing planes and hiring technical staff. Airline IS NOT a national strategic asset.

 

[Rashid Mahmood]

Then PIA should hire 20 million more employees to cut unemployment and the Pakistani government instead of building schools should use that money to pay salaries of lazy airline staff. Unlike Railways that require huge infrastructure built over decades an airline can be created in one or two months by buying/leasing planes and hiring technical staff. Airline IS NOT a national strategic asset.

Mismanagement or appointing corrupt Management does not mean you privatise the asset.
The same airline was doing great till the 90's.

PIA is a "strategic" national asset, why do you think CAA is under the MOD.
In War, PIA will used by the armed forces.

 

[krash]

To many members here, why does Pakistan have to sell PIA to have it be turned around?

Look at the SOEs in China. While their run privately, or well as close to private as the CEOs running them while also being in the Chinese government can get, they the government and SOEs support eachother in economic policies.

The best case scenario is to have the PIA be run by a private individual with authoritative powers who's only assignment is to turn the company around. I'm sure @Viper0011 can offer plenty of names of mid-higher lever managers in the aviation industry ready to have their name enshrined in stone on how well they did the impossible.

Mismanagement or appointing corrupt Management does not mean you privatise the asset.
The same airline was doing great till the 90's.

PIA is a "strategic" national asset, why do you think CAA is under the MOD.
In War, PIA will used by the armed forces.

Let's just get real for a moment here. The only way a Pakistani will try (still no guarantees) to run something to its best is when he/she himself/herself has a major stake in it being run well. The moment you remove that liability is the moment when he/she will become a pillaging monster who will try to extract every little ounce of personal benefit through every and any dishonest means, no matter the cost to country and cause. I'm sorry but that's just how we are. Every government institute, especially the PIA, is a prime example of this.

 

[ArsalanKhan21]

PIA is a "strategic" national asset, why do you think CAA is under the MOD. In War, PIA will used by the armed forces.

There are other Pakistani private airlines that are profitable. Let the PIA be sold to the private sector and they will make it profitable by dismissing its 90% of its staff. You need extra planes for transporting troops and the loss making PIA is not the answer. Now even the IMF wants the PIA to be privatize and I agree over 110% !

 

[khail007]

Another step from corruption kings of Pakistan to depreive the nation from its assets.

Rather than curing the diseases of corruption cancer, they will cut every organ and will sold them to their front-mens.

Anybody there, who could stop their un-ending lust?

 

[ArsalanKhan21]

Another step from corruption kings of Pakistan to depreive the nation from its assets

Only monopolies make money and in the private sector if the companies are not run professionally they will go bankrupt. All these corrupt people don't know how to run profitable companies they only know how to steal money. When PIA is sold they will lose another Pakistani asset to steal. Let the private sector own and operate PIA and I assure you it will not be end of the earth.

 

[khail007]

Only monopolies make money and in the private sector if the companies are not run professionally they will go bankrupt. All these corrupt people don't know how to run profitable companies they only know how to steal money. When PIA is sold they will lose another Pakistani asset to steal. Let the private sector own and operate PIA and I assure you it will not be end of the earth.

Sir, it is usual practice of these corruption kings, first to push the institute to the verge of bankruptcy and then buy it for themselves thru their front-mens.

PIA was never in loss; when these democratic morons were not in power. It was one of the best airline of that time, even USAs first families choose PIA.

It was not too far that PIA motivated and assisted in the birth of Emirates. PIA never short of professionalism. Now Emirates is operating 240 aircrafts and PIA on verge of collapse.

Who is responsible, you and I never makes the policies, it is government who do. PIA should get professional staff and leaders not chacha, mama, in-laws and samdhis. Such morons will destroy every institute. That is the case in todays politics.

Though my opinion will irritate many, but we have to think for Pakistan first and not political affiliations. Rather our thinking should always to be stayed primarily for motherland and secondary to politics.

Hope, we all wake-up before time will end.

 

[ArsalanKhan21]

Let PIA be sold to a friendly country. I prefer Turkish Airlines.

Etihad Airways denies buying PIA - The Express Tribune

The Express Tribune > Business
Etihad Airways denies buying PIA
By Our Correspondent
Published: December 12, 2015

KARACHI:
Etihad Airways has denied reports of purchasing Pakistan International Airlines (PIA), which the government has put up for privatisation in the coming months.

“The reports have no substance and are totally unfounded,” it said in a statement issued through its local PR agent. No one was immediately available to explain why the airline felt the need to clarify its position.

PIA and Etihad Airways sign codeshare agreement

The government wants to sell 26% stake along with management control in PIA, which has been saddled with billions of rupees in debt and other legacy costs.

PIA management has been inducted new aircraft lately in a bid to bring down fixed costs and increase frequency but it will take much more for its finances to improve, officials say. Employee unions, backed by thousands of workers and opposition political parties, are up in arm against privatisation.

Published in The Express Tribune, December 12th, 2015.

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[Cyberian]

Good riddance. One more unnecessary burden removed from Government's shoulders.

 

[Viper0011.]

Privatizing a national strategic asset is a grave mistake.
Some national assets cannot be privatised like, PSO, PR, PIA, WAPDA etc.

If you privatize any or all of these institutions, you'd turn them into profitable businesses and will create millions of new jobs. Plus, people will be hired per the talent, not due to someone's uncle's request.

You can still privatize and hold majority of the shared by the Pakistani government. If you see the US, the UK, France, Germany, etc, even all defense equipment manufacturers are public owned companies. This is actually really good for Pakistan.

 

[ArsalanKhan21]

Government will not privatise Pakistan International Airlines | GulfNews.com
Published: 19:11 December 20, 2015
Mohsin Ali, Correspondent
Islamabad: Pakistan’s Finance Minister, Ishaq Dar, said on Sunday that it has no plan to privatise Pakistan International Airlines but instead will seek a strategic partner for its national carrier.

In a statement quoted by Radio Pakistan, Dar said efforts would be made to invite credible and reputed international strategic partners to the extent of 26 per cent in only the core business of PIA.

The finance minister categorically stated there will be no layoffs at the airlines. According to the government, losses at the airline amount to billions of rupees annually.

The statement followed weeks of protests by PIA employees following a presidential ordinance was issued to convert the airline into a corporation.

Dar said as a result of government’s efforts, there has been a visible improvement in the overall working of the airline. He said the number of operational aircraft available with PIA has increased from 18 to 38 and this figure will rise to 40 by the end of this month. Similarly, the average aircraft age has been reduced from 14 years to 9 years and the government is aiming to bring it further down to 6 years, the finance minister said.

The minister said the presidential ordinance issued recently aimed at freeing the PIA management from government control and enabling it to take its decisions independently.

No plan to privatise PIA, lay off employees: govt

No plan to privatise PIA, lay off employees: govt
* Dar says government only intends to seek a strategic partner for the airline to the extent of 26% in only core business of the national flag carrier

• APP
• December 21, 2015

ISLAMABAD: Finance Minister Ishaq Dar Sunday said the PML-N government has no plans whatsoever to privatise the Pakistan International Airlines (PIA).

He said the government, in fact, only intends to seek a strategic partner for the airline and added efforts would be made to invite credible and reputed international partners to the extent of 26% in only the core business of PIA.

The process of selecting the strategic partners would be carried out ensuring complete transparency, he said in a statement issued here.

The minister said there will be no layoffs in PIA and the employees would continue their jobs and careers without any change in their terms and conditions of employment.

He said even if a strategic partner for the airline could not be found, the government remained committed to ensuring that PIA regained its lost glory in the shortest possible time.

The PML-N government, the minister emphasised, actually initiated the restructuring exercise for PIA immediately after assuming office in June 2013. As a result of government’s efforts, there has been a visible improvement in the overall working of the airline, he added.

He said number of operational aircraft available with PIA has increased from 18 in June 2013 to 38 at present. This figure will rise to 40 by the end of this month, he added.

Similarly, the average aircraft age has been reduced from 14 years to 9 years and the government is aiming to bring it further down to 6 years, he said.

In addition, he said, the on-time performance of PIA has improved to 82% which is comparable with the top Middle Eastern airlines.

He said the ordinance issued by the government recently was aimed at freeing the PIA management from government control and enabling it to take its decisions promptly and independently in a transparent manner in the best interests of the company and ensuring early implementation of those decisions.

At the same time, conversion of PIA from a corporation to a company will ensure higher protection to all shareholders which will increase investor confidence, leading to higher investment in the company, he added.

PIA, he said, will now follow the code of corporate governance which will help create a better environment for the management by reducing legal problems and chances of fraud.

All this will ultimately lead to availability of better human resource and healthier financial position, thereby ensuring more aircraft, more routes and better services for PIA’s customers.

The minister reiterated that, with concerted efforts, PIA will regain its past glory.

He also expressed the confidence that all its employees would put in their best to help ensure that PIA achieved international service standards.

 

[asif farooqi]

About time this once-elite and now-pathetic airline gets a shock to the system! Govt is clearly not capable of taking care of the titanic that is PIA