PIA to face further losses
- Thread starter sparklingway
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BATMAN
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PIA is one of the poor dumbest Airline , they r Always late , air staff behaviour is very rude.. Etc etc Etihad Is gud
Better than what is it called ariana? lol the ancient ones.
PIA must be privatized, where the heck is that privatization minister.
privatize minister is busy in corruption so when he will have enough money to buy back PIA share.. he will privatize it with value of penuts.
PIA privatization should not mean granting special rights... and others airlines should be treated equally.
Process should be transparent and employees should be offer first to buy it back.
BATMAN
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Honestly speaking, all most all of Pakistan's state owned corporations and institutions have been politicized..... as a result of massive transfers, sackings, and hirings on anti Pakistan basis....
Most of newly appointed staff works is work for anti Pakistan states .
Any one been to airport after elections can not differentiate if it is an airport or party office of PPP and PML_N.
It is a different type of democracy...... one never see such politicized airports and airlines around the world.
Mentality of appointed staff is that they must earn foreign currency from every foreign passenger .. One can clearly see it at custom clearance counters .. every one, get his share from bottom to top in return no one care about the image of airline which requires marketing valuing millions .
No one can question any person who is pasting political flag on his chest or office.
Like a Kingdom (contrary to democracy) it is must to hang picture of Zardari, Gilani and their male children in every govt. office.
Pleasant looking faces from airline, have been replaced by strange looking and behaving men....
It should be clear .. that it is the tax money of poor people which is paying for those newly hired political parasites.... who do nothing . but can bee seen hanging in airport and eagerly seeking for money making opportunities.
I can swear to God . In Karachi .I have seen immigration officers wearing foreign flags on their chests!!!!
Today, PIA enjoys complete monopoly on world wide routes except Dubai and Saudi routes ..
If you are flying from rest of the world you have no choice but to fly by PIA . Otherwise you have to pay two times once to Dubai and next from Dubai .and again, same story choose between Air-PPP emirates or air emirates.
About three to five years ago PIA had to face competition from British air, Lufthansa, Swissair, JAL but this govt. is a bunch of thieves and traitors and have pushed those air lines out of Pakistan, just to enlarge their share.
Same has happened to PTV.... which has made a suicide by lowering the standard of staff and promoting Indian TV, films, songs and artists more than their own.
Zaradri and Iftikhar ch. Both needed to be punished severely for all this criminal collaboration of protecting each others interests and making people run for roti, kapra and bijli. While wining foreign trips for whole families on tax money.
How shameless and corrupt these people are.
Most of newly appointed staff works is work for anti Pakistan states .
Any one been to airport after elections can not differentiate if it is an airport or party office of PPP and PML_N.
It is a different type of democracy...... one never see such politicized airports and airlines around the world.
Mentality of appointed staff is that they must earn foreign currency from every foreign passenger .. One can clearly see it at custom clearance counters .. every one, get his share from bottom to top in return no one care about the image of airline which requires marketing valuing millions .
No one can question any person who is pasting political flag on his chest or office.
Like a Kingdom (contrary to democracy) it is must to hang picture of Zardari, Gilani and their male children in every govt. office.
Pleasant looking faces from airline, have been replaced by strange looking and behaving men....
It should be clear .. that it is the tax money of poor people which is paying for those newly hired political parasites.... who do nothing . but can bee seen hanging in airport and eagerly seeking for money making opportunities.
I can swear to God . In Karachi .I have seen immigration officers wearing foreign flags on their chests!!!!
Today, PIA enjoys complete monopoly on world wide routes except Dubai and Saudi routes ..
If you are flying from rest of the world you have no choice but to fly by PIA . Otherwise you have to pay two times once to Dubai and next from Dubai .and again, same story choose between Air-PPP emirates or air emirates.
About three to five years ago PIA had to face competition from British air, Lufthansa, Swissair, JAL but this govt. is a bunch of thieves and traitors and have pushed those air lines out of Pakistan, just to enlarge their share.
Same has happened to PTV.... which has made a suicide by lowering the standard of staff and promoting Indian TV, films, songs and artists more than their own.
Zaradri and Iftikhar ch. Both needed to be punished severely for all this criminal collaboration of protecting each others interests and making people run for roti, kapra and bijli. While wining foreign trips for whole families on tax money.
How shameless and corrupt these people are.
you give people headache writing this way.
fatman17
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New plan to make millions in profits without any investment
Wednesday, June 16, 2010
PIA’s Roosevelt Hotel
By Azim M Mian
NEW YORK: Those intent on making quick and big money from the national assets of the poor Pakistani nation have come out with a new plan to pocket millions of dollars without any personal risk or investment. The greedy public office-holders and their collaborators are now eyeing the PIA-owned Hotel Roosevelt in New York.
According to sources, during the past two years, there have been four attempts to sell the PIA-owned Roosevelt Hotel; but fear of judicial activism in Pakistan and possibility of suo moto action remained an effective check, as PIA headquarters are located in Pakistan and within the jurisdiction of the Pakistani judiciary.
A top political personality, who has spent years in New York, before his return to Pakistan, had asked his collaborators to explore some better way to make money from The Roosevelt Hotel that is worth $300 to 400 millions, if its sale was not possible.
“The News” has learnt that after few visits and assessments, a new and unique plan has been prepared that would pave the way to make profits of millions of dollars to those few hands behind the plan and without any investment or risk.
According to the plan, bank loans are to be taken against the mortgage of 1,070 rooms Hotel and the money to be used to add about four new floors to the building with 200 luxury apartments with price range of $3 to 4 million each apartment. Out of these 200 apartments, 25 will be sold at a very nominal price to a top personality of Pakistan, while another batch of 25 to be sold to other politicians, ministers and select members of the gang. The third batch of 50 will be sold to collaborators and executors of this plan in PIA and PIA investment and elsewhere.
The remaining 100 luxury apartments will be sold at the normal open market price of $3-4 million each. The difference between open market price and the nominal price paid by the first special buyers will be the immediate gain of $1to 3 million in the wealth of those favoured politicians and officials of Pakistan.
The scheme seems well calculated. These apartments will be built and added with loans against the Roosevelt Hotel building. Sale of 100 apartments at the open market price will fetch about $300-400 millions to payback the loans. All financial and legal obligations will be of the Roosevelt Hotel. The planners and executors of this plan at very nominal prices would own 100 luxury apartments. The range of nominal price for the favourites is not final yet. By paying nominal price, the buyers will be legally protected, from any corruption or other criminal accusations.
Some PIA Investment Ltd directors and PIA managing director are reportedly aware of this plan. The Roosevelt Hotel has been a venue of greed and corruption in the past. Millions of dollars have been spent on its renovation and repairs. A cursory look at the hotel premises and facilities raises many questions about such renovations with loans of millions. It is interesting that some directors and head of PIA investment were rewarded with cash rewards of $1,50,000 and $100,000 each for supervising the renovation and repairs, in addition to their salaries and fat allowances’. “It was the duty of those salaried directors to supervise the work. Why heavy bonuses of $250,000 for doing their jobs while allowances and accommodation to stay in New York were provided?”
Wednesday, June 16, 2010
PIA’s Roosevelt Hotel
By Azim M Mian
NEW YORK: Those intent on making quick and big money from the national assets of the poor Pakistani nation have come out with a new plan to pocket millions of dollars without any personal risk or investment. The greedy public office-holders and their collaborators are now eyeing the PIA-owned Hotel Roosevelt in New York.
According to sources, during the past two years, there have been four attempts to sell the PIA-owned Roosevelt Hotel; but fear of judicial activism in Pakistan and possibility of suo moto action remained an effective check, as PIA headquarters are located in Pakistan and within the jurisdiction of the Pakistani judiciary.
A top political personality, who has spent years in New York, before his return to Pakistan, had asked his collaborators to explore some better way to make money from The Roosevelt Hotel that is worth $300 to 400 millions, if its sale was not possible.
“The News” has learnt that after few visits and assessments, a new and unique plan has been prepared that would pave the way to make profits of millions of dollars to those few hands behind the plan and without any investment or risk.
According to the plan, bank loans are to be taken against the mortgage of 1,070 rooms Hotel and the money to be used to add about four new floors to the building with 200 luxury apartments with price range of $3 to 4 million each apartment. Out of these 200 apartments, 25 will be sold at a very nominal price to a top personality of Pakistan, while another batch of 25 to be sold to other politicians, ministers and select members of the gang. The third batch of 50 will be sold to collaborators and executors of this plan in PIA and PIA investment and elsewhere.
The remaining 100 luxury apartments will be sold at the normal open market price of $3-4 million each. The difference between open market price and the nominal price paid by the first special buyers will be the immediate gain of $1to 3 million in the wealth of those favoured politicians and officials of Pakistan.
The scheme seems well calculated. These apartments will be built and added with loans against the Roosevelt Hotel building. Sale of 100 apartments at the open market price will fetch about $300-400 millions to payback the loans. All financial and legal obligations will be of the Roosevelt Hotel. The planners and executors of this plan at very nominal prices would own 100 luxury apartments. The range of nominal price for the favourites is not final yet. By paying nominal price, the buyers will be legally protected, from any corruption or other criminal accusations.
Some PIA Investment Ltd directors and PIA managing director are reportedly aware of this plan. The Roosevelt Hotel has been a venue of greed and corruption in the past. Millions of dollars have been spent on its renovation and repairs. A cursory look at the hotel premises and facilities raises many questions about such renovations with loans of millions. It is interesting that some directors and head of PIA investment were rewarded with cash rewards of $1,50,000 and $100,000 each for supervising the renovation and repairs, in addition to their salaries and fat allowances’. “It was the duty of those salaried directors to supervise the work. Why heavy bonuses of $250,000 for doing their jobs while allowances and accommodation to stay in New York were provided?”
fatman17
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Fostering Competition: CCP study recommends divestment of GoP stake in PIA
By Sajid Chaudhry
ISLAMABAD: A study on the ‘Aviation Industry in Pakistan’, arranged by the Competition Commission of Pakistan (CCP), has recommended the government to reduce investment in the Pakistan International Airlines (PIA) in order to eliminate longer term discrimination in favour of PIA which acts as a barrier to entry for private airlines.
According to a new CCP study, the commission raised the issue of discrimination between PIA and private airlines in attribution of international air transport market access. The CCP recommended that the enactment of 2007 Draft Aviation Policy, which foresees equality of private airlines with PIA in attribution of international traffic rights. The CCP observed that the competitive distortion flowing from obligation of private airlines to pay penalty for non-provision of domestic, socio-economic or tertiary routes to PIA. It recommended that the enactment of 2007 Draft Aviation Policy, which eliminates this charge. Alternatively, any penalty should be payable to the government. This could be used to subsidize domestic operations by the most efficient and reliable applicant in a transparent tender process, rather than this subsidy automatically being channelled to PIA.
The commission also raised the issue of minimal participation of PIA in codesharing arrangements, non-participation of other Pakistani airlines in codesharing, and non-membership of any Pakistani airline to global alliances. The CCP recommended the enactment of provisions which facilitate integration at the operational level of Pakistani and foreign airlines. This should include provisions in bilateral air service agreements, permitting third country codesharing operations. Operational integration with third country airlines should help boost yields for Pakistani airlines and fuel growth.
The CCP further recommended that the government should review the possibility to further liberalize foreign investment in Pakistani airlines and that a study should be undertaken as to whether Pakistan could effectively regulate and ensure compliance with local standards of airlines, even if they were not majority owned and effectively controlled by Pakistani nationals. The issue is the elimination of service to Pakistan by European airlines reducing key trade and tourism routes.
The CCP recommended measures to secure airport areas and protect the integrity of aeroplanes, personnel and visitors in the immediate vicinity of aerodromes. The government should allow expansion of services through Gulf hubs as best alternative to frequent direct connectivity at least until a time at which local or direct carriers are in a position to provide enhanced international services to and from Pakistan. The CCP also raised the issue of efficiency of expertise on ancillary issues, including; competition, safety, and environmental impacts of air transportation. The CCP recommended inclusion of government cooperation clauses in bilateral air services agreements foreseeing the exchange of information and collaboration with partner States on ancillary air transportation issues, in order to achieve coordinated best industry practices. There is a need to protect international services through the maintenance of highest categorization in audits carried out by government and ICAO, including post-liberalization. The CCP recommended continued dedication to improving independent and transparent regulatory functions of the Civil Aviation Authority, with requisite government investment in personnel and training.
On the issue of caution against anticompetitive practices in a deregulated aviation environment, the CCP recommended the ongoing proactive tracking of airline policies and practices. The CCP report said that the Pakistan’s international aviation sector is not as strong as it could or, arguably, should be. Of three Pakistani international carriers, two are quasi-exclusively focused on the regional Gulf market. The flag-bearing Pakistan International Airlines remains over 89% government owned. It operates low frequencies to a high number of international destinations and has shown little predisposition to integrating into the modern global commercial context by way of alliance membership or code-share agreements. On the large majority of its international routes PIA faces no direct competition, yet the airline continues to amount losses. Improved connectivity would be positive for the local population and the broader Pakistani economy. It is thus important to establish a framework to generate growth, as has been enjoyed in other countries such as India.
The CCP said that the emphasis should be placed on the need to allow growth of existing and the entry of new Pakistani carriers. Capacity is lacking in the Pakistani aviation sector, with the Gulf expanding seat capacity exponentially and international carriers withdrawing from Pakistan - action is required, otherwise, Pakistan will end up representing a country-spoke of the Gulf networks. Fleet renewal is also key to PIA’s economic performance, the current inhomogeneous fleet of 40 aircraft has an average age of 13 years (compared with 5-6 years for Emirates and Singapore Airlines, and over half of the PIA fleet is older than 23 years. These aircraft hinder PIA since they generate expenses due to inefficient energy usage and high maintenance, repair and overhaul (MRO) costs, and they are also less attractive to the flying public, and especially premium paying passengers. The lack of capacity and the need for fleet regeneration can only be addressed by the promotion of policies attracting domestic investment and FDI into Pakistani airlines, one step is to cut and eventually eliminate all foreign ownership restrictions. Investigation should also be undertaken into how to ensure the flow of FDI into Pakistani airlines as effectively as it has reached upstart enterprises in India. Foreign carriers should moreover promote international air service into Pakistan. Key routes should be identified by study of the destination of transfer passengers connecting to Pakistan through the Gulf region. These should help identify areas where stand-alone service would be sustainable and reciprocal traffic rights should be exchanged with those territories. Daily service between international points should be targeted. Daily services are the only way Pakistani carriers will be able to compete effectively for passengers, and especially premium passengers, with the Gulf carriers who serve a multitude of destinations, many on a multiple daily frequency basis.
The PIA’s structure of serving many points weekly is inept to passenger needs and the orientation of the global business. As more frequent service to key destinations may necessitate reduction of destinations – at least in the short term – it will become essential for carriers to enter into cooperative arrangements with third country airlines to serve a greater number of destinations. As such, provisions on code-share and other airline cooperative arrangements should be prioritised in bilateral air service negotiations.
In order to protect the provision of international air services from and into Pakistan, it is essential that the country retain high standing in the fields of safety and security. Audits, be they by ICAO, the United States, the European Union, or any other entity, must show compliance with international norms. Failure to comply therewith can lead to denial of service by foreign States, or if the security of all flights is compromised, the blacklisting of Pakistan as an aviation partner, CCP study added.
By Sajid Chaudhry
ISLAMABAD: A study on the ‘Aviation Industry in Pakistan’, arranged by the Competition Commission of Pakistan (CCP), has recommended the government to reduce investment in the Pakistan International Airlines (PIA) in order to eliminate longer term discrimination in favour of PIA which acts as a barrier to entry for private airlines.
According to a new CCP study, the commission raised the issue of discrimination between PIA and private airlines in attribution of international air transport market access. The CCP recommended that the enactment of 2007 Draft Aviation Policy, which foresees equality of private airlines with PIA in attribution of international traffic rights. The CCP observed that the competitive distortion flowing from obligation of private airlines to pay penalty for non-provision of domestic, socio-economic or tertiary routes to PIA. It recommended that the enactment of 2007 Draft Aviation Policy, which eliminates this charge. Alternatively, any penalty should be payable to the government. This could be used to subsidize domestic operations by the most efficient and reliable applicant in a transparent tender process, rather than this subsidy automatically being channelled to PIA.
The commission also raised the issue of minimal participation of PIA in codesharing arrangements, non-participation of other Pakistani airlines in codesharing, and non-membership of any Pakistani airline to global alliances. The CCP recommended the enactment of provisions which facilitate integration at the operational level of Pakistani and foreign airlines. This should include provisions in bilateral air service agreements, permitting third country codesharing operations. Operational integration with third country airlines should help boost yields for Pakistani airlines and fuel growth.
The CCP further recommended that the government should review the possibility to further liberalize foreign investment in Pakistani airlines and that a study should be undertaken as to whether Pakistan could effectively regulate and ensure compliance with local standards of airlines, even if they were not majority owned and effectively controlled by Pakistani nationals. The issue is the elimination of service to Pakistan by European airlines reducing key trade and tourism routes.
The CCP recommended measures to secure airport areas and protect the integrity of aeroplanes, personnel and visitors in the immediate vicinity of aerodromes. The government should allow expansion of services through Gulf hubs as best alternative to frequent direct connectivity at least until a time at which local or direct carriers are in a position to provide enhanced international services to and from Pakistan. The CCP also raised the issue of efficiency of expertise on ancillary issues, including; competition, safety, and environmental impacts of air transportation. The CCP recommended inclusion of government cooperation clauses in bilateral air services agreements foreseeing the exchange of information and collaboration with partner States on ancillary air transportation issues, in order to achieve coordinated best industry practices. There is a need to protect international services through the maintenance of highest categorization in audits carried out by government and ICAO, including post-liberalization. The CCP recommended continued dedication to improving independent and transparent regulatory functions of the Civil Aviation Authority, with requisite government investment in personnel and training.
On the issue of caution against anticompetitive practices in a deregulated aviation environment, the CCP recommended the ongoing proactive tracking of airline policies and practices. The CCP report said that the Pakistan’s international aviation sector is not as strong as it could or, arguably, should be. Of three Pakistani international carriers, two are quasi-exclusively focused on the regional Gulf market. The flag-bearing Pakistan International Airlines remains over 89% government owned. It operates low frequencies to a high number of international destinations and has shown little predisposition to integrating into the modern global commercial context by way of alliance membership or code-share agreements. On the large majority of its international routes PIA faces no direct competition, yet the airline continues to amount losses. Improved connectivity would be positive for the local population and the broader Pakistani economy. It is thus important to establish a framework to generate growth, as has been enjoyed in other countries such as India.
The CCP said that the emphasis should be placed on the need to allow growth of existing and the entry of new Pakistani carriers. Capacity is lacking in the Pakistani aviation sector, with the Gulf expanding seat capacity exponentially and international carriers withdrawing from Pakistan - action is required, otherwise, Pakistan will end up representing a country-spoke of the Gulf networks. Fleet renewal is also key to PIA’s economic performance, the current inhomogeneous fleet of 40 aircraft has an average age of 13 years (compared with 5-6 years for Emirates and Singapore Airlines, and over half of the PIA fleet is older than 23 years. These aircraft hinder PIA since they generate expenses due to inefficient energy usage and high maintenance, repair and overhaul (MRO) costs, and they are also less attractive to the flying public, and especially premium paying passengers. The lack of capacity and the need for fleet regeneration can only be addressed by the promotion of policies attracting domestic investment and FDI into Pakistani airlines, one step is to cut and eventually eliminate all foreign ownership restrictions. Investigation should also be undertaken into how to ensure the flow of FDI into Pakistani airlines as effectively as it has reached upstart enterprises in India. Foreign carriers should moreover promote international air service into Pakistan. Key routes should be identified by study of the destination of transfer passengers connecting to Pakistan through the Gulf region. These should help identify areas where stand-alone service would be sustainable and reciprocal traffic rights should be exchanged with those territories. Daily service between international points should be targeted. Daily services are the only way Pakistani carriers will be able to compete effectively for passengers, and especially premium passengers, with the Gulf carriers who serve a multitude of destinations, many on a multiple daily frequency basis.
The PIA’s structure of serving many points weekly is inept to passenger needs and the orientation of the global business. As more frequent service to key destinations may necessitate reduction of destinations – at least in the short term – it will become essential for carriers to enter into cooperative arrangements with third country airlines to serve a greater number of destinations. As such, provisions on code-share and other airline cooperative arrangements should be prioritised in bilateral air service negotiations.
In order to protect the provision of international air services from and into Pakistan, it is essential that the country retain high standing in the fields of safety and security. Audits, be they by ICAO, the United States, the European Union, or any other entity, must show compliance with international norms. Failure to comply therewith can lead to denial of service by foreign States, or if the security of all flights is compromised, the blacklisting of Pakistan as an aviation partner, CCP study added.
sparklingway
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Prelim copy of the report (not final but seems like a final draft):- http://www.cc.gov.pk/images/reports/aviation_report_pakistan_draft_1.pdf
Just read the conclusions, short and definitive recommendations.
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