PM Khan calls for developing a business plan to revive PIA as profitable institution
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Prime Minister Imran Khan on Tuesday directed the authorities concerned to develop a comprehensive business plan to revive Pakistan International Airlines (PIA) as a profitable institution, Radio Pakistan reported.
The premier said this while chairing a meeting in Islamabad to review the ongoing reforms of the national carrier.
Khan said PIA had become a liability due to the mismanagement and corruption for which taxpayers had to share the burden, the report added.
Expressing satisfaction on the current PIA administration, the prime minister asked PIA Chairman Arshad Malik to develop a comprehensive strategy to overcome the losses the airline was facing.
In his briefing to the prime minister, the PIA chairman said that the total deficit of the airline stood at Rs414.3 billion.
Finance Minister Asad Umar, Minister for Privatisation and Aviation Muhammad Mian Soomro, Air Force Chief Air Marshal Mujahid Anwar, Senator Faisal Javed and others also attended the meeting.
The national flag carrier is currently facing a deficit of Rs500 million on seven international routes in addition to the loss on domestic routes.
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Comments (56) Closed
Jan 01, 2019 08:41pm
PIA is a loss-making airlines flying in profit-making routes !
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Jan 01, 2019 08:43pm
Cut the staff. After Syrian Air, PIA has second worst employee-to-aircraft ratio.
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Jan 01, 2019 08:50pm
@M. Emad, why do you have to poke your nose in every matter of ours
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Jan 01, 2019 08:51pm
Fire the employee given job not on merit. No more political hiring.
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Jan 01, 2019 08:57pm
PIA was deliberately let down by management to support Blue Air & other private carriers. PIA has the potential to recapture lost market and glory. PIA management needs to take some tough decisions like no new induction for 5years,reduce over staffing,improve services and make fairs competitive.
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Jan 01, 2019 08:58pm
no need any plan to revive airline, PIA has profitable route to make profile. terminate the political basis hiring staff, cut down the expenses and provide the best facility in the airline
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Jan 01, 2019 09:07pm
Walk the Walk instead of Talk the Talk.
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Jan 01, 2019 09:09pm
Loss making routes should be temporarily closed till the time of converting into profitability.
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Jan 01, 2019 09:23pm
This will be the toughest test for Imran Khan and will be the real victorious if revive the corrupt PIA
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Jan 01, 2019 09:31pm
Only option is to clean up first and then privatize it
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Jan 01, 2019 09:36pm
If there is political will, the airline can be turned around. Previous governments showed no such will. Instead were using this institution for their political gains.
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Jan 01, 2019 09:36pm
Do something NEW in NAYA PAKISTAN! the business plan for a dying organization is just a waste of time. This organization needs major overhaul.
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Jan 01, 2019 09:45pm
Can not fault the staff of PIA, they were wonderful , and it is not their fault that they do not have the tools.
not enough blankets, screen none of them worked. I came with my family on Sunday, they were very helpful
I hear the other day the flight left 4 hours early, It's the management that need to get their act right.
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Jan 01, 2019 09:48pm
I'm a proud PIA Traveller...this is an easy task to take over gulf airliners...I live in Toronto and if and when I go to Pakistan I wanna get home directly. There are lots of Pakistani people live abroad opposed to UAE QATAR or any middle eastern countries. PIA have an upper hand to bring the business it has lost. Even I can revive this airliner
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Jan 01, 2019 09:53pm
About a decade and a half ago, PIA signed a hosting agreement with Sabre Corporation for providing hosting services that included a reservation system that is costing the carrier an arm and a leg, The Sabre system replaced PIA's own home-grown system that was based on a technology of the Sixties. It is still not too late for PIA to begin developing its own reservation system and thereby saving millions of dollars in hosting and booking fees.
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Jan 01, 2019 10:14pm
Probably IK have ALADIN lamp to make PIA in to profit with mountain of debt. Airline have no money to buy new aircrafts and even no money to maintain the old planes with surplus staff
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Jan 01, 2019 10:19pm
Not only PIA but all other institutions..
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Jan 01, 2019 10:21pm
Here’s the plan...
Reduce headcount by atleast 30 percent in 2019
Invest and recruit educated talented individuals where required
Root out corruption within the organisation
BUY NEW planes from Boeing / Airbus for all major routes
Open up new routes especially to the Far East where Karachi as a stop over connection from the west can be taken advantage of.
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Jan 01, 2019 10:39pm
I thought a plan had been in making for a while, and should be ready by now.
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Jan 01, 2019 10:57pm
Ground the airline.... Enough with the mismanagement .
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Jan 01, 2019 10:58pm
Join hands and follow Turkish Air's example.
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Jan 01, 2019 10:59pm
Emirate air line was develop by pia . That one is profitable organization then why not pia. Only reason is political environment and non merit selection. There should be strategy such there will be no political interference in future as well.
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Jan 01, 2019 11:00pm
@kamran, really? Hmm so what you are proposing doesn’t that need a Plan?
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Jan 01, 2019 11:09pm
@Pak-UK, is the current chairman a political hire?
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Jan 01, 2019 11:23pm
Clearly the airline is overstaffed and ineffectively run. It is not the job of ministers to attempt to run commercial entities that they know little about.
Therefore, the best strategy is to privatise it and let the new owners run it in a way that makes money for them. To do this they will need to compete with other airlines on price, quality of in flight service and reliability.
One really does not need to be a rocket or aeronautical scientist to sort this.
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Jan 01, 2019 11:44pm
Under the prevailing circumstances, it's very hard if not impossible to make PIA a profit earning organization.
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Jan 02, 2019 12:13am
Only those airlines are surviving which are in partnerships with a GCC airlines . PM IK may plz talk to Arab Emirates. or KSA.
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Jan 02, 2019 12:19am
10th graders fly PIA. The whole HR is responsible.
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Jan 02, 2019 12:24am
As a Prime Minister, you have to make first step, rather calling for plan.
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Jan 02, 2019 12:27am
Simply finance the deficit the airlines will be profitable again on paper for some time.
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Jan 02, 2019 12:29am
Correct aircraft employee ratio and revamp your planes interior so as people can feel like to travel. Long route flight with pathetic entertainment system are killers. PIA flights nearly full on domestic routes. Finally throw dead woods out
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Jan 02, 2019 12:35am
Based on previous experience a week before departure PIA flight used to report being fully booked, but when you board plane many seats were empty. It was mentioned that these seats are kept for VIPs who may show up at the last minute. This practice should be stopped for good.
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Jan 02, 2019 01:07am
The people incharge of managing affairs of PIA are its worst enemies . Lay-off atleast half the staff and throw out the corrupt and incompetent. You maybe lucky to break even then.
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Jan 02, 2019 01:13am
PIA’s 750-to-one Employee to Aircraft ratio would be a great place to start reforms!
Global profitable private airlines usually have a 200-to-one ratio or less!
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Jan 02, 2019 01:17am
Of course THE QUESTION remains!
WHY does Pakistan need a state owned and run airline, other than as a hiring hall for loyal party members needing jobs?
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Jan 02, 2019 01:19am
too many employees, most of them hired using political influences. reduce the work force
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Jan 02, 2019 01:48am
How can a retired Air Marshal come up with a plan to make PIA profitable?
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Jan 02, 2019 02:35am
Only way is to privatise the airline with certain control. Any fix will be temporary and with change of this government, it was will be reversed back.
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Jan 02, 2019 02:35am
Plans will not revive a rude inefficient organization
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Jan 02, 2019 04:00am
Every institution that became a bog financial burden from a very successful one like PIA, NCHD, PSM, Railway, Govt. Schools etc was mainly because of "Ghost Employees" hired on the basis of "parchee". Also many hired on the "Sifarish" or "Jaan Pehchan" basis instead of proper qualification for the job. Get rid of these and replace on the basis of qualification and then then performance monitored. Make these institutions "Lean & Mean".
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Jan 02, 2019 04:11am
the total deficit of the airline stood at Rs414.3 billion - yet we keep on operating it! Set a deadline for PIA and Steel Mill, if both fail to make the profit, privatization is the solution.
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Jan 02, 2019 04:22am
Over 100 days IK has been in the office. As usual meetings, committees etc.No concrete decisions, no concrete results. The total deficit of the airline stood at Rs414.3 billion. Is it worth keeping it? Treat it like a failed business enterprise, sell it. if you can find a buyer.
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Jan 02, 2019 04:26am
I travelled on PIA last month, and my first class started fifteen minutes early ! However the rest of the plane was left behind..
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Jan 02, 2019 04:28am
This is a pivotal step taken by the PM to make a solid strategy for uplifting the National Carriage more operational and profitable as it was in 1960's era and in this context please get the services of honest Ex-Executives and professional Managers.
Please emphasize on fetching Cargo business which will be a source of making lucrative profit and PIA will have the edge to approach Middle East and Far East countries traders.
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Jan 02, 2019 04:30am
We can make the. PIA a great Airline once more. Unfortunately we need another ten more years to regroup. If given the opportunity I will prove to Imran Saab that this will be a world class first rate Organisation.
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Jan 02, 2019 04:32am
PIA should be handed over to the provinces to take care of. That will solve the problem..
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Jan 02, 2019 04:37am
Please make a pivotal strategy to work out the profitable Routs and discontinue the loss incurring routes immediately. It is pertinent to note PIA can generate lucrative revenues from Cargo business in Middle East as well as from Far East countries .
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Jan 02, 2019 04:48am
This is a formidable step taken by the PM to give directions to make the National Carrier a profitable organization and in this context please review the loss incurred routes first and also enhance the Cargo business in Middle and Far East countires.
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Jan 02, 2019 05:13am
Salam HE the PM Saheb and the Serving Team: Having finance background, an entity with Rs400 Billion loss cannot be revived so easily. First write off this deficit to national exchequer account, which in practical terms has been done. Interest on this deficit at 10% would mean Rs40 Billion loss per annum, which you cannot turn into profit.
Sir - in my humble view, we should liquidate this organization with golden handshake to long serving employees, and let us float a new airline or let private sector to float it. I am sure PM and his finance team would know about "turn around" companies. Their task is to turn loss making venture into a profitable or "redress them somehow and sale it off". This may be a second option, but very honestly revival of this loss making entity or for this matter PSM is a far fetched idea!
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Jan 02, 2019 05:30am
Abolish quotas to hold certain number of seats on each flight for different departments whether they come or not,this practice leave half plane seat empty while tickets purchasing passengers can not book the seat.
No more free ticket on each flight .All passengers or departments must pay.
No more free luggage on any flight.
Each delay trying to get hotel kick back must be investigated independently.
No more favors.
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Jan 02, 2019 05:34am
PIA was deliberately let down by management .PIA has the potential to recapture lost market and glory. PIA management needs to take some tough decisions like no new induction for 5years,reduce over staffing,improve services ,increase fleet and make fairs competitive.
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Jan 02, 2019 05:45am
Good initiative
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Jan 02, 2019 05:57am
it does not take a rocket scientist to figure out why PIA losing money. Too many employees, strong union, government mandate and corruption.
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Jan 02, 2019 06:46am
shut PIA down, layoff everyone and rehire on merits - might as well rename the airline
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Jan 02, 2019 08:34am
Instead of a savy CEO with proven turn-around track record, another retired air marshall, with all due respect, is in charge unlike successful carriers. Besides, it's a govt outfit and a govt outfit is not run with profit motive. Decissions are bound to be faulty because of the contradictory guiding principles of govt organization and a private entity. Ought to start at the top who must be allowed to bring in his/her own team to run the show. Set the organizational stucture correct. Without those, we can expect more of the same.
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Jan 02, 2019 09:18am
This was one of the main political slogan for years, while it has taken more than 5 months to pass on only the instruction !!!!
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