"PIA Two" will be formed for PIA's revival

[SHAMK9]

Pakistan International Airlines

Aging equipment, outstanding loans, and incomplete pass-through of fuel costs weigh on the profitability of the firm.

Our restructuring plan includes stripping the nonviable components of PIA under a separate public sector enterprise — PIA 2 — by end-December 2013.

We will service the guaranteed past loans of PIA 2, apply a voluntary “handshake” plan for the excess work force and liquidate by end-June 2014.

The PIA will retain some liabilities that it can service, streamline workforce and will receive capital injection from the government.

We plan to privatize 26 percent of PIA’s shares to strategic investors by end-June 2014 (structural benchmark).

In the meantime, PIA will continue contracting leases on more efficient airplanes and rationalizing routes.

Shifting non-flight activities to a new subsidiary company could be among the options in order to focus on core activities.

From Ministry of Finance website.

'PIA Two' will be formed by the end of December 2013.
* Old and non working equipment of the airline will become part of 'PIA Two'.
* Surplus employees of the airline will be offered golden handshake in 'PIA Two'.
* 'PIA Two' will cease to exist by the end of June 2014.
* 26 percent of PIA shares will be sold/auctioned by the end of June 2014.
Abbas Ali, HistoryofPIA

 

[HAIDER]

PIA and railway is the biggest victim of " syasi bhartian " . I see army of non working employees on Pakistani airports. God knows how they afford all these people. Few years back Farial Talpur sister of Zardari gave a gift of 1700 supporter to PIA from local constituency .

 

[zoundzforever]

same in IB, 2,000 ppp workers in a sensitive institute.

 

[ziaulislam]

the only solution seems to privitze everything because you will see the PPPP might come into govt again

PPPP gave up 12% shares to its own emplyess for billions of rupess one of the biggest scam in history

 

[BloggerPakistani]

and When PR 2 is coming ? Pakistan Railway 2

Yep Privatization is a good solution. See the quality of service of Business Express Shalimar and Shalimar Night Coach as compared to the other train administrated by PR. If this can happen in Railways then why don't in PIA

 

[FCPX]

The PIA that once was.............

 

[unitedstatesofislam]

Why can't a glass of water, a cup of tea and a tray of meal be served by a male steward? Why is only a young, smiling and jazib e nazar haseena is always required to do this simple job?

 

[Jungibaaz]

Why can't a glass of water, a cup of tea and a tray of meal be served by a male steward? Why is only a young, smiling and jazib e nazar haseena is always required to do this simple job?

hahaha.

Good question. I suppose it's the norm. Air hostesses are in demand.