SHAMK9
SENIOR MEMBER
- Joined
- Mar 5, 2010
- Messages
- 6,095
- Reaction score
- 4
- Country
- Location
Pakistan International Airlines
Aging equipment, outstanding loans, and incomplete pass-through of fuel costs weigh on the profitability of the firm.
Our restructuring plan includes stripping the nonviable components of PIA under a separate public sector enterprise — PIA 2 — by end-December 2013.
We will service the guaranteed past loans of PIA 2, apply a voluntary “handshake” plan for the excess work force and liquidate by end-June 2014.
The PIA will retain some liabilities that it can service, streamline workforce and will receive capital injection from the government.
We plan to privatize 26 percent of PIA’s shares to strategic investors by end-June 2014 (structural benchmark).
In the meantime, PIA will continue contracting leases on more efficient airplanes and rationalizing routes.
Shifting non-flight activities to a new subsidiary company could be among the options in order to focus on core activities.
From Ministry of Finance website.
'PIA Two' will be formed by the end of December 2013.
* Old and non working equipment of the airline will become part of 'PIA Two'.
* Surplus employees of the airline will be offered golden handshake in 'PIA Two'.
* 'PIA Two' will cease to exist by the end of June 2014.
* 26 percent of PIA shares will be sold/auctioned by the end of June 2014.
Abbas Ali, HistoryofPIA
Aging equipment, outstanding loans, and incomplete pass-through of fuel costs weigh on the profitability of the firm.
Our restructuring plan includes stripping the nonviable components of PIA under a separate public sector enterprise — PIA 2 — by end-December 2013.
We will service the guaranteed past loans of PIA 2, apply a voluntary “handshake” plan for the excess work force and liquidate by end-June 2014.
The PIA will retain some liabilities that it can service, streamline workforce and will receive capital injection from the government.
We plan to privatize 26 percent of PIA’s shares to strategic investors by end-June 2014 (structural benchmark).
In the meantime, PIA will continue contracting leases on more efficient airplanes and rationalizing routes.
Shifting non-flight activities to a new subsidiary company could be among the options in order to focus on core activities.
From Ministry of Finance website.
'PIA Two' will be formed by the end of December 2013.
* Old and non working equipment of the airline will become part of 'PIA Two'.
* Surplus employees of the airline will be offered golden handshake in 'PIA Two'.
* 'PIA Two' will cease to exist by the end of June 2014.
* 26 percent of PIA shares will be sold/auctioned by the end of June 2014.
Abbas Ali, HistoryofPIA