PIA flights delyed but Air blue flights are on time. Petrolum minister is owner of Air Blue

[WishLivePak]

Nobody is derailing the topic. Ottoman asked about the owners of Shaheen Air. My friends in Canada personally knew Sehbai brothers when they lived in Canada. So I posted about these young duo entrepenurs that have made Shaheen a money maker.

Please quote the relevant person next time and to keep things simple, just say the name instead of posting a lengthy article.

Also the founder, Sehbai, worked really hard for this airline! Too bad it's going to ruins now. They're facing massive delays due to mismanagement (lacking backup plans).

I agree, also as per ARY talk show Ander-ki-baat; this is all staged so that Pakistan Petroleum will be shown as going in "khasaara" and will be given to the nearest and dearest or the one give the highest commission...

It is in 2 billion dollar of debt.

And to be honest, even if people get PIA, PSO, others mills for free, it'd be great relief for Pakistan and its people. These companies are running the gov't dry due to mismanagement. Plus, the longer these companies are under gov't's belt, the longer future gov'ts will get their voters jobs in the industry (like PPP did last time). The reason why there is shortage of fuel is also due to gov't having control. If things were deregulated, Pakistan will improve by miles.

So it's better to give these companies away for free and let the new owner deal with the debt and turning around the company. Gov'ts job is to look after education and health, among other things, not running airlines or loss making enterprises.

 

[batmannow]

Please quote the relevant person next time and to keep things simple, just say the name instead of posting a lengthy article.

Also the founder, Sehbai, worked really hard for this airline! Too bad it's going to ruins now. They're facing massive delays due to mismanagement (lacking backup plans).


It is in 2 billion dollar of debt.

And to be honest, even if people get PIA, PSO, others mills for free, it'd be great relief for Pakistan and its people. These companies are running the gov't dry due to mismanagement. Plus, the longer these companies are under gov't's belt, the longer future gov'ts will get their voters jobs in the industry (like PPP did last time). The reason why there is shortage of fuel is also due to gov't having control. If things were deregulated, Pakistan will improve by miles.

So it's better to give these companies away for free and let the new owner deal with the debt and turning around the company. Gov'ts job is to look after education and health, among other things, not running airlines or loss making enterprises.

Peoples of pakistan has thier full rights to take over air blue, s feul terminals & dig out the dam feul for thier, motercycles cars!
& should throw the money, what, s been set as price per litre, by the dam minsters govt?

 

[Adecypher]

Its stock on "average" was doing well till October, 16, 2015...

 

[WishLivePak]

Its stock on "average" was doing well till October, 16, 2015...

View attachment 185129

It's likely may be going to default on its debt.

If i were investor in Pakistan, I'd not invest in this and sell my old investments. PSO has to pay forward, but how can it if the companies that owe it cannot pay? This means, oil imports "may" stop, unless the gov't regularly gives a lollipop every now and then (as it have) to keep it going.

In the event it defaults, a lot of investors will lose shitload of money. Being optimistic, i'd say it's not going to default but its debt will grow larger.

 

[Adecypher]

nah it won't default soon but I don't see anyone in the current govt setup to manage it effectively either...and that is a real dilemma unfortunately.

 

[WishLivePak]

nah it won't default soon but I don't see anyone in the current govt setup to manage it effectively either...and that is a real dilemma unfortunately.

It may never default, but I would not invest in something whose debt is going to grow larger and there is no sight of companies that owe it going to be paying (since they're in debt themselves).

Besides, it's state company, so gov't cannot let it default. I'd invest only if the shares are 10-25 rupees (larger risk, smaller investment). 200 is way high for a company $2b in debt.

Right now there are some $234m in shares if my math is correct. This is way high for a debt ridden company.

 

[punit]

well i always fly with air india.. they are the best (touchwood) feels homely

i prefer INDIGO for domestic ! punctual no nonsense !

 

[Adecypher]

Agree "very risky" investment right now...the circular debt had eaten it up. I found a nice explanation of circular debt crises in Energy Sector in Pakistan: click here

 

[FaujHistorian]

It's likely may be going to default on its debt.

If i were investor in Pakistan, I'd not invest in this and sell my old investments. PSO has to pay forward, but how can it if the companies that owe it cannot pay? This means, oil imports "may" stop, unless the gov't regularly gives a lollipop every now and then (as it have) to keep it going.

In the event it defaults, a lot of investors will lose shitload of money. Being optimistic, i'd say it's not going to default but its debt will grow larger.

Please note.

We are paying in rupees at the petrol pump.

PSO cannot use those rupees to pay for petroleum imports.

PSO needs dollars from Pak gov / state bank.

So even though "amounts are owed" to PSO, those amounts are in rupees. For international imports in the tunes of billions of dollars, those rupees are not worth the paper/cloth/plastic they are printed on.

Not saying, users should not pay PSO

I am just adding an important point to this debate. The point about the need of billions of dollars to pay for oil imports.

Thank you

 

[Jzaib]

The crisis has developed slowly and over a period of months. The payment problems were there as circular debt emerged from early last year, but it could be true only in the case of furnace oil. The circular debt should not be blamed for drying out transport fuels or petroleum products other than furnace oil. The products are sold and purchased on cash and are mostly produced locally. Crude, too, is bought in long-term supply contracts.

 

[WishLivePak]

Please note.

We are paying in rupees at the petrol pump.

PSO cannot use those rupees to pay for petroleum imports.

PSO needs dollars from Pak gov / state bank.

So even though "amounts are owed" to PSO, those amounts are in rupees. For international imports in the tunes of billions of dollars, those rupees are not worth the paper/cloth/plastic they are printed on.

Not saying, users should not pay PSO

I am just adding an important point to this debate. The point about the need of billions of dollars to pay for oil imports.

Thank you

Which makes it at an even worse investment.

Which begs the question, why the hell is the share price at 200 rupees and people are purchasing it further (until recently), when all it has been doing is gathering more debt.

 

[Screambowl]

i prefer INDIGO for domestic ! punctual no nonsense !

in domestic flights indigo is best .. no doubt.

 

[ArsalanKhan21]

The crisis in profitable Pakistan State Oil is being created so that it becomes money losing company and that it can be sold for peanuts to Nawaz Sharif supporters in guise of privatization. Nevertheless PIA has been perennial money loser and should be privatized or many of its flights be transferred to private airlines.

 

[Dubious]

This has absolutely nothing to do with politics. I love picking on cb4, but in this case I agree with him.

ok...As long as all flights are suffering equally

 

[WishLivePak]

The crisis in profitable Pakistan State Oil is being created so that it becomes money losing company and that it can be sold for peanuts to Nawaz Sharif supporters in guise of privatization. Nevertheless PIA has been perennial money loser and should be privatized or many of its flights be transferred to private airlines.

lol

its already in 230 billion debt and has been befor nawaz came in power