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KARACHI: A new organisation, Pakistan Airways, has been registered as a ‘premium service subsidiary’ of the Pakistan International Airlines (PIA).
This was announced by a spokesman for the national flag carrier in a statement on Saturday.
He said the step would improve the service and image of the airline.
Secretary Privatisation Commission Ahmed Nawaz Sukhera last week confirmed the government's intent to move ahead with privatisation of Pakistan International Airlines (PIA).
“Currently, it is under consideration to bifurcate PIA into core and non-core businesses. The core business will comprise PIA flight operations, landing and handling, kitchens, training and education, engineering and healthcare, which will be handed over to the strategic investor,” Mr Sukhera said, adding that the non-core business, such as real estate and hotels would not be handed over to a strategic partner.
Opposition to the sell-off was intense. PIA employees in early February went on protest after the government refused to accept a four-point agenda proposed by the Joint Action Committee of PIA employees and put off privatisation.
However, the protests ended on Feb 9 after "a kind friend advised us to call off the strike," JAC chairman Sohail Baloch had said, urging "all airline workers to work with full dedication and pay no heed to anyone trying to disrupt flight operations".
Published in Dawn, February 21st, 2016
Read more
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What ails PIA? Let's dispel some myths
Parliament watch: Tough-talking govt wins the day against PIA strikers
The airport where the battle for PIA was won and lost
PIA standoff: Classic PML-N — Doing the right thing the wrong way
On DawnNews
Comments (96) Closed
Feb 21, 2016 08:18am
If Pakistan Airways retains PIA employees, then it can never be a premium service organization.
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Feb 21, 2016 08:33am
In the name of democracy all the corrupt, looters and exploiters are ganging up to undermine NAB and FIA so that they can loot, plunder and completely destroy Pakistan un disturbed. It's time for forces that have sworn to protect Pakistan to step up and save the country. The nation will not forgive any inaction.
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Feb 21, 2016 08:37am
`Pakistan Airways` is step to hand over PIA to Qatar Airways.Anyway we want revival of PIA.Efficient and skilled workers of PIA should transfer to Pakistan Airways.
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Feb 21, 2016 08:39am
THE FIRST STEP TOWARDS PUTTING pia IN TO BIN.
Well done Mr.Isaque Dar now tell the Nation how you sold PIA to Ethiad Airways.
Nab another file to be open.
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Feb 21, 2016 08:41am
Another PIA in making ! Are 'nt we trying to get rid of PIA ? What kind of nonsense is this ?
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Feb 21, 2016 08:47am
From Orient Airways to Pakistan Airways
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Feb 21, 2016 08:59am
PIA going to be sold to Mian Mansha at a trow away prize..
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Feb 21, 2016 09:05am
@mohammed
pia is already in the bin. you act like it was earning profits for many years and now it is unfairly being sold. the only way to revive it is to change the hands on the wheels
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Feb 21, 2016 09:16am
have Sindh health ministry run this new airlines. All people of thar will smell fumes nothing more.
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Feb 21, 2016 09:23am
privatization of pia is the only solution to combat corruption in the organization.
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Feb 21, 2016 09:27am
Bye bye PIA, hello Pakistan Airways.
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Feb 21, 2016 09:45am
Get rid of all jialaas.. as simple as that!
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Feb 21, 2016 09:49am
@Ahmed Jialas , Bhai log etc. . PPP and MQM has equally ruined and plundered PIA and steel mills etc.
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Feb 21, 2016 09:59am
same wine but different bottle.... It is just a peg for publicity... in fact PIA is sold out... it is just gimmick being played.....
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Feb 21, 2016 10:12am
@Syed A Hasnat Armed forces have no responsibility to act as another NAB. Accountability is better done through due judicial process. Armed forces can tell the government, in a language that government is not supposed to misunderstand, that good governance cannot be compromised. But the role of Armed forces just stops at that.
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Feb 21, 2016 10:40am
Thankyou
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Feb 21, 2016 10:46am
Overseas Pakistanis Remittances were $19 Billion... If only $ 1 Billion spent to acquire 10 A320 New Aircrafts ( or on Lease only $100 Million/Year) we can manage to make PIA profitable specially when Oil prices are at record low. Next 2 to 3 years are Profit Making season for all Airlines. We love our National Carrier PIA. Overseas Pakistanis will discourage the Privitization of PIA
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Feb 21, 2016 10:49am
@Syed A Hasnat Which Nation??
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Feb 21, 2016 10:54am
A wolf in sheep's clothes??
Changing the name is not what was needed. PIA needs organizational change, revamping, purging of political appointees, sack incompetent and excess staff, review networks, quality of performance, latest equipment, efficient management, competitive pricing structure to be a truly new carrier.
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Feb 21, 2016 10:58am
Old Content; New Packing
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Feb 21, 2016 11:44am
And who will correct rest of the fleet?. . Seems that PIA management wants to focus on uplift of a segment only . .
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Feb 21, 2016 12:01pm
Remove the influence / hold of employees of Big Brother Province from PIA. Fire all the corrupt non flying staff (specially managers and above) from that Clan, just kick them out, give the administration to human beings and the company will start running in profit. NOTHING ELSE IS REQUIRED.
Realize the problem before trying to solve it. Give the company back to the people who launched and ran it as the top airline in the world.
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Feb 21, 2016 12:02pm
Let us hope and wish the best even if we know the new baby will bear the same germs and gene.
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Feb 21, 2016 12:09pm
@Omar The only way to break corruption cycle: 100 %private all companies, corporations, mills, rest houses, circuit houses, banks, security printing press, colleges, universities, dispensaries, hospitals, clinics, rail away, ports, post offices, radio, tv, telegraph , highways, airports, in the end only 6 ministries plus PM, only house run by govt: PM ! President, only bank own by govt. state bank. Learn from USA! GERMAN! Japan, and the see their standard of living, GNP! GDP, education level, literacy rate.
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Feb 21, 2016 12:09pm
Good step in the right direction, PIA is a tool of corruption.
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Feb 21, 2016 12:10pm
@Omar
No MQM. Sindh urban quota is only 2.5% in federal organizations.
The rest are all son of soils quota.
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Feb 21, 2016 12:10pm
@Omar
No MQM. Sindh urban quota is only 2.5% in federal organizations.
The rest are all son of soils quota.
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Feb 21, 2016 12:15pm
Its a fully owned subsidiary of PIA so still part of the same family. Wonder if they can move it out as an independent company and then it buys off all of PIA's assets and lets PIA die with all its problems. Clean start.
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Feb 21, 2016 12:23pm
That shows how weak is present govt cant able to run PIA.
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Feb 21, 2016 12:25pm
This is all privatization drama will be in favour of Nawaz and others involved. Pakistanis should get free from these culprits
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Feb 21, 2016 12:29pm
good to know the process of privatizing PIA started. I hope the service and profitability will be enhanced.
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Feb 21, 2016 12:29pm
@shoaib its in the bin for too long because of NRO that you are missing from your comments. PPP and Nawaz league both cared less about PIA PSM etc. and future is never bright in the hands of corrupt masters.
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Feb 21, 2016 12:42pm
Now another organization where the rulers can appoint their chosen and favourite persons for various jobs.
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Feb 21, 2016 12:54pm
Another subsidiary for looters its Pakistan after all.
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Feb 21, 2016 01:03pm
To be progressive and successful, PA has to be lean and mean. Get rid of jiyalas, Shers and Bhayyas from the airline for over.
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Feb 21, 2016 01:14pm
Poor guys who lost lives in protest .... RIP
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Feb 21, 2016 01:15pm
Why doesn't this man understands that poor management, corruption, non-accountability and nepotism are the things which needed to taken care off, rather than privatisation.
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Feb 21, 2016 01:28pm
When an organization is perceived as failing create an off-shoot and call it Premium! By the same logic Steel Mill will have a genetic duplicate soon as well! Hopefully such occurrence doesn't become a trend.
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Feb 21, 2016 01:29pm
First you do massive corruption and then when the whole company is almost dooed, you put it on sale under "privatization". Classic example of corruption.
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Feb 21, 2016 01:30pm
Old wine in a new bottle? Fact is, that this was all an exercise to fatten wallets of friends and family, and in the process, create opportunities for heavy kickbacks. When was the last time you heard of anyone doubling their assets just before selling it off for peanuts? Fleet went from 19 to 38, yet PMLN was always planning on selling it. Doesnt add up in any way.
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Feb 21, 2016 01:42pm
@Omar please stop this mqm and ppp obsession. I've never seen any staff on PIA plane from these two while traveling from BBIA to Japan. PIA has staff from all over Pakistan. May be the jobs were granted to PPP or MQM people during BB's tenure but the same happens to PML n people during NS's regime.
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Feb 21, 2016 01:43pm
And who is this "kind friend"??
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Feb 21, 2016 01:50pm
@Ali Raza @omar In which flight or PIA office have you seen MQM people most staff is from Punjab and not even Sindhis are there. I am not MQM but if it would have been in MQM care I am sure PIA would not have collapsed. Also you can get idea of Punjab power from the fact it was announced that mr shabaz shareef would lead the negotiation. In what capacity he will lead ? And why we don't know
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Feb 21, 2016 01:59pm
it appears that Govt. does not NAB to intervene in PIA's Privatisation. that's why it wants to keep NAB at arms length by threatening it to remain in a "defined circle". G W Bush's doctrine of preemptive strike is being applied here ....
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Feb 21, 2016 02:03pm
The new airline should follow the Turkish pattern of operations that has made that airline the world's number one in terms of destinations and the number of existing plus ordered planes, as well as the economical distribution of staff per aircraft in operation.
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Feb 21, 2016 02:07pm
No existing PIA employee should be transferred to Pakistan Airways. The selection should be done purely on merit and international standards skill sets in order to make PIA better.
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Feb 21, 2016 02:14pm
@Omar MQM is deprived of the powers after local body elections. MQM has none of its members in the higher categories of Sindh government. Then how can u say that MQM is also guilty? Why don't u blame PML-N and PPP wholly rather than the lower-middle class party? If u had lived in Karachi then u would have realized why we voted for MQM.
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Feb 21, 2016 02:17pm
The name "Pakistan" does not carry a lot of goodwill these days. I am not sure if this is such a good idea from a marketing standpoint.
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Feb 21, 2016 02:19pm
This country is left in the hands of the rich and greedy for loot and plunder.
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Feb 21, 2016 02:21pm
@Shumaila You are slightly wrong at this point:Only skilled and dedicated employees should be transfered to PA because PIA also has so many goog workers.
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Feb 21, 2016 02:30pm
Good. The union heads may have made fortunes to stay out of protests.
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Feb 21, 2016 02:31pm
How could a mediocre organization bore a premium organizations?
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Feb 21, 2016 02:37pm
@Junaid I bet, it's just for freeloaders, like Parliamentarians, VVIPs, Government Officials, PA Staff etc..
Call it exclusive First Class on its own!
Rest of the PIA will be regular 'economy' class??
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Feb 21, 2016 02:48pm
PIA and Pakistan Railway, they were like good working brothers. But Unfortunately both are now completely dead and destroyed due to massive mismanagement, corruption and nepotism. Now Malik Riaz should come forward and start his own private international Airline for all Pakistanis. It will be a big success inshaAllah just like his Bahria town Mega projects. Now its the right time to sell-off the doomed PIA to China before its too late.
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Feb 21, 2016 02:58pm
it would be same like PTCL , KESC OR KE
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Feb 21, 2016 03:04pm
The Engineering & Precision Engineering should be a Separate entity as a public company on its own. It will generate revenue to serve both domestic and international aviation needs. Normally aviation engineering companies are a separate entity to serve as an Hub for many airlines. The new aviation engineering company should be floated on the Pakistan on same business model as is in Singapore. Its a recession proof industry standing on its own with its own business model to advance and to provide aviation engineering services.
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Feb 21, 2016 03:05pm
This is just gimmick!
I don't know any international airline which has two different types of services or aircraft. One for the average, poor economy-class traveler. And the other for pampered, spoiled snobs - who probably travel at discounts or completely free!!
What is this 'Premium subsidiary' going to offer? Separate check in counters, real bone-china in-flight catering, gold fixtures on the aircraft, or a separate airport for the rich and the bored??
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Feb 21, 2016 03:07pm
Kick out all the corrupt elements from PIA; it will be more than half problem solved.
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Feb 21, 2016 03:23pm
@kaleem
Sir,
Qatar is only a front. It is another very small Middle Eastern country that wants to enter Pakistan through the back-door as well.
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Feb 21, 2016 03:56pm
Make something better than Emirates...and why not...if there is a will there is a way...
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Feb 21, 2016 04:32pm
@Syed Mohsin Abbas why overseas Pakistanis will discourage privatisation. 19 billion sent is not to burn in a company like pia
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Feb 21, 2016 04:35pm
why don they privatize the Govt as well.... if not hand us out to better governing authorities like one in UK or Germany or Singapore....
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Feb 21, 2016 04:37pm
@Syed Mohsin Abbas PIA annual loss is 33 billion. Nothing can save it.
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Feb 21, 2016 05:04pm
Pakistanis should consider privatization of govt when they are giving huge losses to us choose someone from other countries to lead us.
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Feb 21, 2016 05:16pm
The new airline needs a professional management without interference from politicians to work. This seems not practical in Pakistan so the fate of the new airline will be same as old.
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Feb 21, 2016 05:20pm
The buyer will buy all the assets except real estate and the Pakistanis will be stuck with the current liabilities including the operational loans and the losses. Another corruption ridden deal.
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Feb 21, 2016 05:24pm
Something is fishy, someone is trying to get something from PIA's operational weakness, efforts to privatise PIA is not on merit only.
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Feb 21, 2016 06:43pm
PIA used to offer one of the lowest fares, which was good for poor. This premium service is an innovative solution. Kudos to PMLN and NS.
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Feb 21, 2016 07:13pm
Another way of corruption. You all know what I mean
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Feb 21, 2016 07:36pm
The ability of our nation to create controversy out of every situation is astounding. PIA is stealing from pockets of every taxpayer for decades. However, the efforts to somehow turn its fortunes are being met with overwhelming skepticism. y don't people see the unbelievable improvement in customer services of MCB, HBL, PTCL, UBL etc after their management was transferred to private hands. Add to it hundreds of billions of profits govt has earned through its remaining shareholding in these organizations.
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Feb 21, 2016 09:17pm
Sell PIA and hire new staff as it is not planes that are creating problems but STAFF who are big fat cats.
PIA used to a great Airline ,till our looters politicians put their ugly foot in it.
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Feb 21, 2016 09:22pm
welcome Pakistan Airways
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Feb 21, 2016 09:29pm
Can't manage one what's the reason having another?
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Feb 21, 2016 09:55pm
There are good employees in PIA as well, if we get good management with competitive policies there is a good chance that PIA can prosper and the employees who create trouble and are mischievous would automatically be replaced. Its all about the will at the top.
All great organizations have great managements and they provide policies which provide growth and prosperity for the employees. PIA currently lacks those polices and definitely there is a need of organizational culture in PIA
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Feb 22, 2016 12:01am
Pakistan Airways registered as a "premium service subsidiary" of PIA. In theory, that is fine as many airlines have made similar arrangements to stay operational, but in practice if its just creating another organisation for corrupt politicians to loot and plunder, that would not be allowed as that is criminal. So everything must be transparent, based strictly on merit (no political jiyalas getting jobs as that proved disastrous). This subsidiary will be closely monitored and have to justify its creation by topflight performance and profitability. Let this be warning to the government.
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Feb 22, 2016 12:28am
Politicians are now eying and buying ever public asset in the name of making business straight. This will create a new force within masses to take back those assets one day.
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Feb 22, 2016 12:44am
how can changing a name "would improve the service and image of the airline" ?.
did they just busted new mantra for improving PIA or its some fortune telling professor who advised them like this ?. if changing a name can improve service and image of the airline - why privatization is needed ?.... Mr Flag bearer official any remedy to this question ?
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Feb 22, 2016 03:58am
@Syed A Hasnat Yes, like they did multiple times before and then soon started sleeping with the most corrupt of politicians. Can we learn from history? Military coups are not the solution as we saw four times before.
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Feb 22, 2016 04:46am
The profit making side of PIA will be sold cheaply. All the loss making side of PIA will be held by government and the tax payer.
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Feb 22, 2016 05:50am
Pakistan Airways needs to be recreated and rebranded to move away from its horrible standing within the global airline industry. The people currently involved need to be replaced along with the aircraft. There is no one to blame here except the corrupt unions, PPP favouritism, and the sub-standard service these same employees have perpetuated on passengers over decades. No one should be surprised privatization was on the horizon. PIA current management relied on government subsidies instead of engaging in smarter growth plans. How is it that PIA provided Emirates their first aircraft and management......look where they are now and where PIA has landed.
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Feb 22, 2016 07:32am
A premium service maintaining premium salaries and top of the line smuggling services.
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Feb 22, 2016 07:42am
@kaleem ... The efficient and skilled workers of PIA should have their salaries cut back to 75% of the total if they want to save their jobs, and the smugglers should all be doing five years of prison time. Someone needs to pick up the tab for all the loafers and free loaders.
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Feb 22, 2016 07:44am
@mohammed .... PIA employees couldn't pull their own weight.
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Feb 22, 2016 07:48am
@Khan- Pakistani ... PIA is going on the auctioneers' block unless it can compete with other domestic carriers, which is unlikely. It is what the unions asked for, a chance to complete. The international routes will be separated.
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Feb 22, 2016 07:58am
@Omar .... The business of America is business. The business of Pakistan seems to be graft and corruption. Anyone who gives you power will either control you with it or take it back.
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Feb 22, 2016 08:05am
@Syed Mohsin Abbas .... You are right about the economics, but derailing the privatization of PIA can't happen from overseas.
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Feb 22, 2016 08:25am
Same rotten wine in a new bottle?
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Feb 22, 2016 08:27am
@Mirza .... They are going to keep the premium airline and sell off the rest of PIA it the unions can't run it domestically at a profit.
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Feb 22, 2016 08:31am
@M.Saeed .... The Australian airline Qantas is ranked number one in the world overall.
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Feb 22, 2016 09:06am
@A Ali .... .... or Indonesia.
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Feb 22, 2016 09:10am
@Iftikhar Husain .... Too late for professional management. They needed an MBA with a BA in marketing and CEO experience, not an air force general who brought his seat cushion with him.
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Feb 22, 2016 09:25am
@parveez ..... .... This time it is the other way round. The unions wanted time to "turn PIA around" and show a profit. They get the domestic routes. There is nothing stopping all the union members from buying the shares of PIA and running it themselves. That has been done before, and with aviation gasoline at rock bottom prices now would be the time for union members to put their money where their mouths are - that they can make money.
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Feb 22, 2016 09:27am
@berni .... That must mean premium service on overseas flights only.
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Feb 22, 2016 04:25pm
Pakistan Airways should be supported by a profitable and sustainable plan, with higher aircraft utilization, a simplified schedule, and more seats per aircraft. Making an offshoot succeed requires delicate union negotiations. There may be attempts to offload some of the parent's overhead onto the new carrier, increasing its costs. Tension is bound to arise between parent and child over a range of issues including which one should fly which routes.
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Feb 22, 2016 08:09pm
if govt want to be profitable company then it is necessary to ended the all benefits of govt and retired employees and higher the new staff which is capable to deals the passengers.
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Feb 22, 2016 11:41pm
Now good routes and planes will be given to this new airways(private) and losses, loans will be paid by PIA /Pakistani people
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