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PIA DEAL WITH TRANSWORLD

Prince_of_Mistery

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Dear All,

I am very concerned about a deal that was signed between PIA and Transworld from UAE. This Company has limited Civil Aviation Experience and has managed to sign a contract with PIA which will kill all competition in purchasing of aircraft spares for the airline.

What on earth is PIA Management Thinking when they signed this contract. It is the final Nail in PIAs Coffin unless someone stops it.

Let Me know your thoughts on this and if there is any lawyers who think this needs to be taken to court and stopped as it violates number of procurement rules within Pakistan.

Kind Regards

N
 
This is not the only example of PIA's corruption.
The unions are corrupting the civil works projects
whereas the senior political figures are corrupting the bigger projects.

PPRA rules and regulations have been raped and f'ed to death.

The feudal lot led by Zardari has done it again. Same modus operendi as Pakistan Steel.
 
How can the an Airline like PIA fail ?

PIA has a market which never declines (Hajj Operations and ME)

Yet it is not the airline it used to be
 
How can the an Airline like PIA fail ?

PIA has a market which never declines (Hajj Operations and ME)

Yet it is not the airline it used to be

Any corrupt government can cause the most profitable organization to go bankrupt.

If leaders like we have in Pakistan are in Emirates Airline, even it will fail.

Our leaders are expert in these things. At least they are "experts" in "something".
 
How time revolves; Emirates was looking at PIA as a leader and now we have no choice but to look at them as a leader in this field. We cannot now compare PIA with Emirates for any of the services provided by Emirates Airlines or their annual profits.
 
Gentlemen,

This issue needs to be highlighted around Pakistan so that enough support is gathered to get rid of this deal.

I would appreciate it if you could highlight this issue on your facebook pages, twitter and any other forum you are member of.

I work in Aviation and there is no Airline in the world who has this type of deal with "middleman" company.

With this deal all competitive bidding is thrown out of the window. After a short while Transworld will be able to charge whatever price they like.

The deal needs to be cancelled ASAP. Please use your influence to spread the message...

Thanks

N
 
PIA could still be profitable business within two years.

Did you know that they only have 39 Aircraft and almost 20,000 Employees. This is ridiculus, how can they be profitable with so many employees.

They need to down size on the number of employees they have and all other no essential buildings and staff based abroad.

They need to get rid of political appointed MDs and bring in someone from outside who knows how to run an airline.

With the right management team they can be a really profitable airline and an asset to Pakistan rather than a liability.
 
yeah, i saw this as well. Amazing.
Forum members might not know that TW had been blackisted by MOD due to business malpractices and was re-instated in 2004-5.
Another important link, nephew of an Ex PAF chief is partner in this company and also heading its pakistani operations.
and yet another and most important link. A Pakistani company 'LaGuardia group' has recently entered into a partnership with TW. This Pakistani company has links to the most influential personality of the country, I know what most of you are guessing, but you are WRONG.The TW website shows that the company is basically a trading company. Has not shown any approval by the acft manufacturers and or OEMs and has no repair or overhaul facilities. In its website the company claims to support almost every civil or military, aircraft and helicopter under the sun. (Only brokers do that).

Leaving aside everything else, why should a major airline opt to go through a dealer/trader/broker for aircraft parts? All acft manufacturer (mainly airbus and boeing for PIA) have their product support agreements with the OEMs which provide guidelines for quality, costs, warranties and AOG support.

May be another first in airline industry?

WTF is happening?

---------- Post added at 02:26 PM ---------- Previous post was at 02:23 PM ----------

Another little fact for the members. This came from a PIA 747 Captain himself.

Even if PIA seats 200% of the aircrafts' capacity, it will still be in a loss, but if Emirates seats 40% capacity, it is in profit. All due to better management. We have a old fleet of aircraft, which are not certified in many parts of europe. Grossly overemployed. And with incompetent people in every post.

---------- Post added at 02:26 PM ---------- Previous post was at 02:26 PM ----------

A new development.

PIA asked to declare spares contract as

PIA asked to declare spares contract as ‘mis-procurement’

By Amin Ahmed | From the Newspaper
(11 hours ago) Today

Pakistan International Airlines (PIA). – File Photo

ISLAMABAD: The Transparency International Pakistan (TIP) has asked the PIA management to declare the reported award of $200 million contract to a Dubai-based company for supply of spare parts for five years as `mis-procurement` because it is a violation of Public Procurement Rules of 2004.

In a letter written to PIA Managing Director Capt Nadeem Khan Yousafzai, the head of the advisory committee of Transparency International Pakistan, Syed Adil Gilani, referred to reports that PIA had awarded a Rs18 billion contract to Transworld Aviation without inviting public tenders.

“This acknowledges and confirms that the PIA has appointed Transworld Aviation exclusively with first right of refusal for a period of five years for all services pertaining to normal supply of aviation spares and repair/overhaul management of rotables, consumer material, chemicals and life limited parts with aggregate value of not less than $40 million annually,” the letter says.

Quoting Rule 47 of the Public Procurement Rules, Mr Gilani said: “As soon as a contract has been awarded the procuring agency shall make all documents related to the evaluation of the bid and award of contract public. However, the reported contract is not displayed on PPRA website.”

The Transparency International urged the PIA to make this and all other procurements in accordance with the requirements of Public Procurement Rules, 2004.

“In case this procurement is made contrary to the requirements of PPR 2004, Rule No. 2(f) will be applicable for collusive practice among bidders (prior or after bid submission) designed to establish bid prices at artificial, non-competitive levels and to deprive the procuring agencies of the benefits of free and open competition,” the Transparency International said.

Mr Gilani referred to the violation of rules four (principles of procurements), seven (integrity pact); eight (procurement planning); twelve (methods of advertisement); thirty-five (announcement of evaluation reports) and forty-seven (public access and transparency).

The Transparency International has sent copies of the letter to the chairman of Public Accounts Committee of the National Assembly, the minister for defence, registrar of the Supreme Court, the auditor general and the managing director of Public Procurement Regulatory Authority.
 
According my information i have, Majority of the people inside PIA middle Management and Some even in higher Management are not happy about this deal.

They Were Told to make this deal happen. It was signed last week and came into force on 24th september 2011.

Transworld used its links with UAE Royal family to get this deal through.

If transworld was such a great company why havent any of the middleast operators signed upto similiar agreements.

The Only thing which PIA is sighting as reason for this deal is that they will give them $700 Million USD credit.

This will just put further burdern on the airline and within few years the whole airline will go bust or Pakistan government will have to give a lot of money to transworld.

No PPRA rules were followed in this tender.

Once agian i ask you to flag this issue up with your friends and any influential body within Pakistan.

Otherwise you can kiss goodbye to PIA.
 
According my information i have, Majority of the people inside PIA middle Management and Some even in higher Management are not happy about this deal.

They Were Told to make this deal happen. It was signed last week and came into force on 24th september 2011.

Transworld used its links with UAE Royal family to get this deal through.

If transworld was such a great company why havent any of the middleast operators signed upto similiar agreements.

The Only thing which PIA is sighting as reason for this deal is that they will give them $700 Million USD credit.

This will just put further burdern on the airline and within few years the whole airline will go bust or Pakistan government will have to give a lot of money to transworld.

No PPRA rules were followed in this tender.

Once agian i ask you to flag this issue up with your friends and any influential body within Pakistan.

Otherwise you can kiss goodbye to PIA.

My questions is , are not we supposed to buy spares and maintenance parts from Airbus and Boeing for the aircraft, rather than a third party?. Why o why? Transworld does not even seem to be a maintenance company. Just brokers.
 
My questions is , are not we supposed to buy spares and maintenance parts from Airbus and Boeing for the aircraft, rather than a third party?. Why o why? .................. .

Well there are a lot of things wrong with PIA...........

Why is most of the ground handling at airports done by Dnata and Shaheen not PIA? PIA has the infrastructure right ?

Why does PIA not have proper cargo planes ?

Why is PIA running at a loss in the first place ?
 
My questions is , are not we supposed to buy spares and maintenance parts from Airbus and Boeing for the aircraft, rather than a third party?. Why o why? Transworld does not even seem to be a maintenance company. Just brokers.

I work in Aviation Industry, especially spares business these days. Some times it is cheaper to buy from third parties because other airlines who stop using aircraft tend to sell surplus inventory at discounted rate. These Third Party buyers pick up these parts at discount and tend to sell them at lower price than Manufacturer to generate business. Also Manufactureres tend to sell new parts only, with aircraft you can overhaul and use older parts which are cheaper.

I dont have problem PIA buying from third parties or Manufacturers as long as it does not have exclusive deal with one company as this creates no comptetition for the company and they can charge the airline what ever money they like.

This is very uncompetitive, all the airlines i have worked with never have exclusive deals with any third party vendor, this way the airline is cornered and cannot get the best price.

I hope someone in Pakistan Realises this and puts a stop to it.
 
I work in Aviation Industry, especially spares business these days. Some times it is cheaper to buy from third parties because other airlines who stop using aircraft tend to sell surplus inventory at discounted rate. These Third Party buyers pick up these parts at discount and tend to sell them at lower price than Manufacturer to generate business. Also Manufactureres tend to sell new parts only, with aircraft you can overhaul and use older parts which are cheaper.

I dont have problem PIA buying from third parties or Manufacturers as long as it does not have exclusive deal with one company as this creates no comptetition for the company and they can charge the airline what ever money they like.

This is very uncompetitive, all the airlines i have worked with never have exclusive deals with any third party vendor, this way the airline is cornered and cannot get the best price.

I hope someone in Pakistan Realises this and puts a stop to it.

But it was in the contract no?

Yeah, reliance on one company makes you unreliable.

---------- Post added at 02:58 PM ---------- Previous post was at 02:55 PM ----------

Well there are a lot of things wrong with PIA...........

Why is most of the ground handling at airports done by Dnata and Shaheen not PIA? PIA has the infrastructure right ?

Why does PIA not have proper cargo planes ?

Why is PIA running at a loss in the first place ?

There are different things for this. The airports are not property of PIA, they are property of CAA and pakistan government. PIA has no control over airports. The ground staff are of different companies. Every airport does this. One company is there for the food, another for sanitation, another for maintenance, another for towing the aircraft, another for cargo services, another for cleaning of aircraft, another for getting the APU/GPU in place and so on. Nothing unusual there.

As far as cargo plane is concerned, no need really. We already have an aeging passenger fleet.
 
Well there are a lot of things wrong with PIA...........

Why is most of the ground handling at airports done by Dnata and Shaheen not PIA? PIA has the infrastructure right ?

Why does PIA not have proper cargo planes ?


PIA does not have cargo aircraft because its not a cargo airline.. all of its cargo requirements are met using its existing aircraft which havd cargo capacity.

PIA is running at a loos because it has too many employees. Approximately 20,000 when airline of this size requires less then 10,000, I will leave it to you to do the maths how much they are costing the airline.

They also have offices in london. newyork, Paris which are costing a lot of money to maintain.

The Management is paying too much for spares and other items which it requires to run the airline. Basically a lot of courrupt practices.

With ground handling i am not sue about that one..
 
Nuclearpak,

With civil airlines you normally don't sign contracts for spares with Manufacturer as the open market is good place to get spares parts.

Spare parts contract are only done with military aircraft because only a number of companies make them and have the ability to fix them. therefore its good to contract to get the parts on time and in airworthy condition.

With civil any one who has approval can repair and maintain aircraft. the industry is lot more liberal.
 

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