Govt to offer 51% stakes in PIA, Roosevelt to Qatar

[khail007]

PIA will probably end up being to Qatar Airways what FlyDubai is to Emirates. A budget airlines. PIA will probably just operate A320s and a few 777 for the long haul flights to the West.

It could be as speculated in your post.
The standards of recruitment/selection of staff of these Arab states are entirely different from Pakistani standards which are without merit and mostly based on political or commendation. If you could remember the sale of PTCL to the UAE, most of the senior management scales were revised to such standards that a vast majority said goodbye to the company. Further manpower was reduced according to the requirements and every 'chachas/mamas' were gone. Only those retained who do the job based on skills and sincerity to the organization.

So in this case, the large number of manpower will face reduction to 'appropriate' with revised scales to the Gulf standards based on their skills, punctuality, and sincerity.

Though it is a fact that PIA laid the foundation of Emirates with the wet lease of aircraft and total engineering support. On another hand, that is also a fact that Emirates is thriving and PIA being an international symbol/icon in the decades of the 60s/70s was destroyed by the politically based labor unions that were totally infertile to deliver but played a major role in the destruction of a renowned institute of Pakistan.

 

[Kharral]

What the absolute fck?

So if I read the article correctly, PIA management will now be outsourced to Qatar? The sole argument against privatization of PIA was that we need a national airline that is under the state of Pakistan.

So now agr Qatar ko hi bechna hai, to why not privatize it through an open bidding process?

And Islamabad airport management goes to Qatar as well? What's the difference then between Islamabad and Kabul airport? Dono ki management is outsourced to the gulf. 20 crore ka mulk hai and we can't run our own airport? Furthermore, I really don't think CAA will be taking this move lightly, and will be in opposition to this. But un ko chup karana mushkil nhn.

And I thought PTI mulk bech rahi thi...

@Mav3rick , any comments?

Qatar means Shareef family & Army establishment.

Army establishment brings its minions to power & sells national assets to itself and its minions. Minions get compensated for their financial losses suffered due to army victimising them for the last few years. Army gets some more assets and that too abroad.
Win Win situation.

 

[Jango]

Because Pakistani private carriers will simply outcompete PIA by operating direct routes.

Which Pakistani private carrier offers routes to countries other than the Middle East in large numbers? ME3 are the preferred choice (alongwith Turkish and a few others) for flights to Europe and US. EK has around 40 flights a week to Karachi alone...and all go with greater than 90% loads. The Pakistani CAA and authorities do now rue this happening, but they can't say no to EK and cash now.

Qatar has been vying for increased slots in Pakistan since long...but was always countered.

By operating on a codeshare with PIA, Qatar can capture a significant portion of the market and in some cases provide more attractive layover options (since they aren't restricted to operate company aircraft).

I agree with you that the hub and spoke approach is giving way, but the market dynamics of Pakistani aviation are a bit different.

This all of course is just board gaming, let's see what plan Qatar has in store.

 

[Wood]

Which Pakistani private carrier offers routes to countries other than the Middle East in large numbers? ME3 are the preferred choice (alongwith Turkish and a few others) for flights to Europe and US.

Existing airlines will invest to expand in these routes. Narrow body long haul aircrafts have opened new economic opportunities that did not exist before. I predict (and hope) that many cities in subcontinent will have direct flights to important capitals in Europe. If an air line does not operate this route, then it will not be able to compete.

Air India (under TATA) has recently made a big order for narrow body planes that can handle direct flights to Europe. This change is inevitable and Qatar airways will should surely know this as well.

Let's see who is right in a couple of years time. I'll bet that Qatar Airways will operate this airline as efficiently as possible while retaining the airlines status as a flagship for Pakistan. At the end of the day, PIA's profits will now be shared with Qatar as well.

 

[Jango]

Air India (under TATA) has recently made a big order for narrow body planes that can handle direct flights to Europe. This change is inevitable and Qatar airways will should surely know this as well.

This change of ownership has been the best thing to happen to AI since many years...and it does seem to be on the right path now.

Let's see who is right in a couple of years time. I'll bet that Qatar Airways will operate this airline as efficiently as possible while retaining the airlines status as a flagship for Pakistan. At the end of the day, PIA's profits will now be shared with Qatar as well.

Oh I don't mean that Qatar will run PIA into the ground.

Just alter the priorities of PIA different to what had been set by the previous AM in charge and management. Time will tell.

Al Baker is pretty smart in these thing, he didn't pick a fight with Airbus for nothing after all!

 

[Kharral]

Perhaps when they've sold every thing they can sell the Army?

It’s already sold.

 

[GOAT]

Change in management and approach is good for PIA. Most governments have no business running an airline, many countries successfully privatize their airlines.

 

[airmarshal]

what the f*ck!!!

Sell them alright but thieves should not be allowed to sell our stuff.

 

[AZ1]

ppp destroyed steel mills, pmln,ppp both destroyed PIA.

All political worker settle in these two three places so ruin it all

 

[FuturePAF]

That is what I am curious about.

PIA has plans (and currently an open bid if I am not wrong) for A330's. The UK routes are currently closed (they are the main earner for PIA), and PIA/CAA is actively working to get that up.

If this deal does go through, I can definitely see Qatar changing these plans and making PIA a feeder airline for it's network to Doha and capturing the Pakistani traffic to the UK and Canada etc.

Pehle Emirates nay saray slots lay kar tabah kar dia, aur ab yeh. Although I am not a proponent of protectionism (you should have a better product if you want to get traffic), but it should be within reason and not to your own detriment.

Considering the costs in running an airlines, it maybe necessary for this kind of privatization if there is hope for PIA to run on a fully commercial basis; not requiring any subsidies from the government budget.

The only fear is some routes maybe cut, and some Pakistani cities no longer served if foreign owners feel it doesn’t make financial sense.

 

[SaadH]

Good, When Qataris will give big Danda to these beghairat PIA employees then only they will start working. Our qoum only understands one language, the language of Danda. Sad state of affairs.

No they will just run it into the ground, fire the employees, liquidate assets and keep anything salvageable and and take over the routes, which is what they are really after.

 

[Jango]

Considering the costs in running an airlines, it maybe necessary for this kind of privatization if there is hope for PIA to run on a fully commercial basis; not requiring any subsidies from the government budget.

The only fear is some routes maybe cut, and some Pakistani cities no longer served if foreign owners feel it doesn’t make financial sense.

Again, the privatization itself isn't an issue. This is what I have been supporting since long.

It is preferential privatization that is a problem, rather than through an open process.

 

[HttpError]

No they will just run it into the ground, fire the employees, liquidate assets and keep anything salvageable and and take over the routes, which is what they are really after.

At least I like this part "Fire the employees". They all deserve this.