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Published 13 Jan, 2011 11:15pm

Rabbani has reservations over PIA`s proposed deal with Turkish Airlines

ISLAMABAD, Jan 13: Mian Raza Rabbani, Adviser to the Prime Minister, has expressed serious reservations over the viability of a memorandum of understanding to be signed by Pakistan International Airlines with Turkish Airlines (THY) under which national carrier will hand over most of its routes to Europe and the US to the Turkish Airlines from Istanbul.

He has called for a briefing by the PIA management to the Senate Standing Committee on Defence and urged the chairman of the committee to convene an urgent meeting.

He said that all associations and unions representing PIA employees had objected to the plan and the airline's management had failed to satisfy them about its advantages and viability. He said that the proposed arrangement might limit and eventually eliminate the role of PIA as an international carrier.

The proposed arrangement is considered by analysts here as contrary to strategic plan prepared by PIA under which it would procure 16 new aircraft, expand operations and double the revenue in five years.

Informed sources told Dawn that under the agreement, PIA would surrender all its routes to Europe and America, except London, Oslo, Copenhagen and Paris, to the Turkish airline. It will restart the Houston-Texas route which it had suspended four years ago after incurring huge losses. It will continue to operate direct flights to Toronto.

Passengers for New York and Chicago will be carried by PIA's aircraft up to Turkey and from there onwards by Turkish Airlines. The same arrangements will cover PIA passengers booked to Amsterdam, Frankfurt, Milan, Rome, Barcelona, Birminghan and Manchester.

Under the agreement there will be 21 flights between Pakistan and Turkey, 17 of them to be operated by PIA and four by THY. PIA will provide 5th and 6th freedom rights to THY and serve as the latter's feeder.

Under the MoU, the national carrier will provide a guaranteed load to THY and will get some commission. However, in lean seasons when it may not be possible to provide the guaranteed load, PIA will have to pay for the loss of revenue seats. In case of overbooking during peak lead seasons, PIA will pay for the fare difference charged by THY.

The 21 feeder flights from Pakistan will be operated from Karachi, Lahore and Islamabad.

THY will provide feeder passenger services for PIA's flights from Pakistan to Colombo, Kathmandu and Dhaka.

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