PIA to cut jobs, halt flights to US due to financial losses

[Laozi]

PIA to cut jobs, halt flights to US due to financial losses

KARACHI: Pakistan International Airlines (PIA) will stop flights to the United States and cut jobs from October 31.

The airline is expected to cut more than 500 jobs under the latest plan.

According to a private media outlet’s report, the officials have taken this decision due to heavy losses the country’s flagship carrier was incurring—the losses were estimated to be over Rs 1.25 billion annually.

After October 31, the airline will no longer book US flights through its reservation system.

PIA had been operating flights to the US since 1961 without any disruption. A total of five weekly flights to New York and three other US cities were being operated.

The same reason had forced the airline to ponder upon the option of closing its operations in the US in past too but the political pressure it faced each time hindered its plans, according to the report.

These flights were beneficial to some politicians holding dual citizenship, top government officials and pilots so they exerted pressure on the airline to not stop its US flight operations.

After stopping direct flights to the US, PIA will enter into a code-sharing agreement with an American airline. US-bound passengers will be flown to London, where they will then be transferred to the American airline which will take them to the US.


https://www.pakistantoday.com.pk/20...s-halt-flights-to-us-due-to-financial-losses/

 

[Mrc]

Can some one please privatise this thing??

 

[somebozo]

This sick donkey should be privatized as it is more of a political employment sector rather than an actual airline

Can some one please privatise this thing??

I think its not even worth privatization...the brand name is tarnished beyond recovery...better to hand it over to a consortium of foreign investors and rename the airline.

 

[El Sidd]

Pakistan international airlines the PIA will not be allowed to privatise.

The flag carrier's operations should be rehauled and extra jobs laid off.

One good step to a better future this.

 

[Flash_Ninja]

Arab airline companies are making a fortune of these flights, PIA has simply been run into the ground by mismanagement and political interference.

 

[somebozo]

LAHORE - Although one-time permission given to former PIA CEO German national Bernd Hildenbrand to fly home for thirty days expired on June 10, he did not return to Pakistan to face corruption charges.



Bernd’s name was placed on Exit Control List (ECL) for his alleged involvement in lease of A330 aircrafts for much-trumpeted start of Premium Service. Similar excessive payments have been made on lease of A320 aircrafts in use of PIA.

FIA sources have revealed that a PIA A310, which was airworthy and flew to Germany, was sold to a German company for Euro 45,000, although same aircraft was hired by company in Malta for 10 days at a cost of Euro 210,000 and its book value was estimated to be $3.1 million.

PIA Board of Directors headed by former chairman and Aviation secretary had given approval to the leasing agreement negotiated by a committee comprising CEO Bernd, Director of Corporate Planning, Director of Engineering, Director of Flight Operations and CFO for leasing of A330 from Sri Lankan Airlines at over $8,000 per hour although similar aircraft have been procured on lease by other private Pakistani registered airlines for approximately $4000 per hour.

It should be noted that every Pakistani registered airline under regulatory control of CAA Pakistan has to submit complete record of leasing contracts to the regulator for grant of permission to operate it for scheduled commercial airline operations. Both PIA and CAA Board of Directors were headed by Secretary of Aviation and there were many other members of board who were on governing board of both these state owned institutions. It can be safely assumed that Chairman of the CAA Board of Directors was aware of cost of leasing these aircrafts by private airlines.

PM’s Adviser on Aviation Sardar Mehtab Abbasi had given go-ahead to FIA to investigate in these massive corruption scams that have eroded PIA for ages. He has also issued instructions to give exemplary punishments to those PIA employees involved in financial and administrative indiscipline.

While numerous parliamentarians lost their seats for submitting fake educational degrees and also faced criminal charges, over 300 PIA regular and contractual employees continue to be on payrolls even after it has been established that their basic degrees submitted to employer were fake.

Former CEO Bernd was placed on ECL pending investigation by FIA for massive corruption and was barred from leaving the country. He was hired during tenure of Chairman Nasir Jaffer. In a surprise move the Ministry of Interior gave him special permission for 30 days on 4 May 2017 knowing well that as a German citizen once he leaves the country, other than through Red Warrants issued through Interpol, it would be difficult to ensure that he returns. Investigations into this probe seem to have been landed in cold storage as have numerous other investigations ordered in massive corruption in loss-making white elephants like PIA, PSM, CAA, etc.

An FIA official said investigations have been halted only for the reason that the main accused is not present in the country. On his arrival investigations would be started again, he said and added, “I am sure that he will be back since he was permitted to leave country after assurance of German Embassy sources”.

 

[Thəorətic Muslim]

Oh man, just 500 "employees" brutal how will the PIA be able to function?

PIA is recoverable. Even British Airways was trash before it was nationalized and privatized again ~14 years later.

https://www.economist.com/news/fina...nership-not-right-answer-economic-ills-perils

The problem is once the privatization of PIA goes through, who will be the buyers? Having the corrupt dynasties divvy up the vary institution they helped collapse would only serve in their favor. Many routes, profitable ones, have been given to the mysterious "Muslim Ummah", with little to no recourse.

Taking action against Bernd is counterproductive and hypocritical when not only are:

1. 300 employees are still with PIA upon their degrees being proven fake,
2. Hundreds, if not thousand, of ghost employees,
3. Thousands in backpay given to employees legally fired,
4. When pilots are chosen as Chairman of an airline company,
5. Overstaffed pilot to plane ratio, not to mention the employee to plane
6. Heavy top-management with no correlation of salary to earnings.

Pakistan's PM can hire ALLAH, but even he wouldn't be able to turn the airline around without being empowered to make the decisions to turn the airline around.

 

[wiseone2]

PIA to cut jobs, halt flights to US due to financial losses

KARACHI: Pakistan International Airlines (PIA) will stop flights to the United States and cut jobs from October 31.

The airline is expected to cut more than 500 jobs under the latest plan.

According to a private media outlet’s report, the officials have taken this decision due to heavy losses the country’s flagship carrier was incurring—the losses were estimated to be over Rs 1.25 billion annually.

After October 31, the airline will no longer book US flights through its reservation system.

PIA had been operating flights to the US since 1961 without any disruption. A total of five weekly flights to New York and three other US cities were being operated.

The same reason had forced the airline to ponder upon the option of closing its operations in the US in past too but the political pressure it faced each time hindered its plans, according to the report.

These flights were beneficial to some politicians holding dual citizenship, top government officials and pilots so they exerted pressure on the airline to not stop its US flight operations.

After stopping direct flights to the US, PIA will enter into a code-sharing agreement with an American airline. US-bound passengers will be flown to London, where they will then be transferred to the American airline which will take them to the US.


https://www.pakistantoday.com.pk/20...s-halt-flights-to-us-due-to-financial-losses/

privatize the PIA

however halting flights to US is a mistake

 

[mmkextreme_1]

Just reading that PIA might not operate from the US anymore is weird, ever since I can remember, that flight from NYC has been operating. Sort off iconic among the Pakistani community here but sadly over the years the standard has gone down and other Arab airlines have benefited from this the most.

Here I was hoping that PIA might bring back the Washington DC destination.

 

[saadkhanhma]

Can some one please privatise this thing??

Shareef brothers are trying to buy it.

 

[cloud4000]

Pakistan international airlines the PIA will not be allowed to privatise.

The flag carrier's operations should be rehauled and extra jobs laid off.

One good step to a better future this.

PIA has been rehauled how many times now? Lost count. And how much losses has the government absorbed through write-offs and subsidies?

Just reading that PIA might not operate from the US anymore is weird, ever since I can remember, that flight from NYC has been operating. Sort off iconic among the Pakistani community here but sadly over the years the standard has gone down and other Arab airlines have benefited from this the most.

Here I was hoping that PIA might bring back the Washington DC destination.

Patriotism is not a good enough reason to fly PIA, or any government-owned airline. Performance matters. The MEAs have been killing PIA for years now and will continue to do so until the airline shapes up.

Nevertheless, I believe the lack of non-stop flights from Pakistan to US has also hurt its business. US won't allow PIA to fly to US directly, forcing it to stop in Manchester so passengers and their baggage can be re-screened for security. Huge inconvenience.

 

[El Sidd]

PIA has been rehauled how many times now? Lost count. And how much losses has the government absorbed through write-offs and subsidies?

we are battling corruption for 30 years now. so i wont be surprised if its 30 times it has be rehauled or its facing 30 times rehauling in the next 30 days....

its our national carrier and it is remaining that.

no government in Pakistan has lost money because they have looted everything. find me a poor politician in Pakistan you can land your Vimanas and store them in Isfahani hanger in Karachi.

these political mafias along with their union mafias have practically made PIA and Steel Mill along with Pakistan Railways there breeding grounds.

you have little idea on the topic but are quite content on passing judgments.

 

[mmkextreme_1]

PIA has been rehauled how many times now? Lost count. And how much losses has the government absorbed through write-offs and subsidies?



Patriotism is not a good enough reason to fly PIA, or any government-owned airline. Performance matters. The MEAs have been killing PIA for years now and will continue to do so until the airline shapes up.

Nevertheless, I believe the lack of non-stop flights from Pakistan to US has also hurt its business. US won't allow PIA to fly to US directly, forcing it to stop in Manchester so passengers and their baggage can be re-screened for security. Huge inconvenience.

I agree with this, patriotism is not a good enough reason to fly PIA. The people working for the airline are mostly a**holes who don't give a crap about there job. The amount of nepotism involved is unreal.

The only way they will improve is the government sells the airline off and it goes completely private. Could be a subsidiary off one of the bigger Arab airlines or any other interested. Don't think they will survive on its own.

 

[HAIDER]

I remember ask PIA employee, why PIA stopped US flights. His reply was interesting, he said , every plane has parking time and when it exceed the time airport authority charge 10,000 dollar an hour for extra hour parking fee. And many time PIA delay flight due to late arrival of some fvcking VIP. So, it's not only parking penalty they also get warning for not complying the native country regulations.

we are battling corruption for 30 years now. so i wont be surprised if its 30 times it has be rehauled or its facing 30 times rehauling in the next 30 days....

its our national carrier and it is remaining that.

no government in Pakistan has lost money because they have looted everything. find me a poor politician in Pakistan you can land your Vimanas and store them in Isfahani hanger in Karachi.

these political mafias along with their union mafias have practically made PIA and Steel Mill along with Pakistan Railways there breeding grounds.

you have little idea on the topic but are quite content on passing judgments.

Kanjar VIP culture in PIA also destroyed the airline. Zardari ghora manga raha ha... Nawaz Shareef paay manga raha ha... these leaders are literally extremely corrupt and there followers are more corrupt then king. Not only this mera dost ka abba took golden shake hand years ago and this son of gun still travel free from PIA. WTF is all this ..

 

[cloud4000]

we are battling corruption for 30 years now. so i wont be surprised if its 30 times it has be rehauled or its facing 30 times rehauling in the next 30 days....

its our national carrier and it is remaining that.

no government in Pakistan has lost money because they have looted everything. find me a poor politician in Pakistan you can land your Vimanas and store them in Isfahani hanger in Karachi.

these political mafias along with their union mafias have practically made PIA and Steel Mill along with Pakistan Railways there breeding grounds.

you have little idea on the topic but are quite content on passing judgments.

So your solution is to keep the national airline in the hands who "have looted everything" and will continue do so?

I agree with this, patriotism is not a good enough reason to fly PIA. The people working for the airline are mostly a**holes who don't give a crap about there job. The amount of nepotism involved is unreal.

The only way they will improve is the government sells the airline off and it goes completely private. Could be a subsidiary off one of the bigger Arab airlines or any other interested. Don't think they will survive on its own.

Pakistan has 200+ million people, a growing middle-class who want to travel. It's a good market no airline can ignore. Nevertheless, for PIA to get on its feet it will need investors, either an investment group or another airline. There was a proposal that was floated a few years back that Turkish Airlines would invest in PIA, establishing a hub in Karachi, but it was shot down by the airline after protests by the labor unions.

Something radical needs to be done. PIA will not change unless its forced to. Every year the airline goes to the government to get bailed out and almost every year the government obliges them.