PM Imran Khan receives ‘detailed roadmap’ on PIA reform

[Aspen]

Pakistan International Airlines, which in May suffered a fatal crash in Karachi, must undergo reforms including increasing revenue and upgrading its aircraft, Pakistan’s prime minister Imran Khan has said.

The flag carrier’s chief executive Arshad Malik, who was reinstated to his position in March following a court dispute over his appropriateness for the role given his military background, “apprised the prime minister of the strategies to be worked out regarding the reorganisation of the national airline” during a meeting on reforming and restructuring PIA, according to an 8 June statement from the prime minister’s office.

This includes how to improve the “financial discipline” of the company, the efficient utilisation of the company’s assets, and “other related matters”.

Khan told the meeting that the country is suffering due to Covid-19 and the present situation demands that the reform and reorganisation of the national carrier, which is losing billions of rupees a month, be expedited. Pakistan has 113,702 confirmed cases of coronavirus, including 2,255 deaths, according to 11 June data compiled by Johns Hopkins University.

He added that “special attention” should be paid to reduce PIA’s expenses, increase its revenue and financial resources, and upgrade its aircraft. Special attention should also be paid to “the best use of domestic and foreign assets owned by PIA through a clean and completely transparent procedure so that these assets do not become a further burden on the people”.

Malik said PIA is facing a monthly deficit of about PKR6 billion ($36.5 million), while yearly expenditure on the salaries of the airline’s 14,000 employees alone is PKR24 billion.

He added that the person holding the top position at the carrier has been changed 10 times in the last 12 years, and in his 16-month tenure as current chief executive, he was unable to work for almost three due to court cases.

“The prime minister was informed that due to these reasons, the process of institutional reform has been severely affected,” the statement said.

Malik also briefed Khan on the progress of the investigation into the 22 May crash of PIA Flight 8303, operated with a GECAS-leased Airbus A320, that killed 97 of 99 passengers and crew. Malik’s briefing included details, which were not specified in the statement from the prime minister’s office, about the handing over of victims’ remains to next of kin and paying compensation to victims.

Other attendees of the meeting, which took place at an unstated date, were minister for aviation Ghulam Sarwar Khan, federal minister for information and broadcasting Shibli Faraz, advisor for institutional reforms and austerity Ishrat Hussain, retired special assistant lieutenant general Asim Saleem Bajwa, and “other senior officials”.

https://www.flightglobal.com/airlin...oadmap-on-pia-reform/138789.article?adredir=1

 

[Syed1.]

"Malik said PIA is facing a monthly deficit of about PKR6 billion ($36.5 million), while yearly expenditure on the salaries of the airline’s 14,000 employees alone is PKR24 billion."


That is Rs 24b of taxpayers money going down the drain every year to uneducated dungar patwaris and jiyalas, then people wonder why PIA is always floundering. PTI should come out with a golden hand shake and fire atleast 10k of these useless employees. A fleet size of 31 planes and 14,000 employees!!!!!!!!

Contrast this with Turkish Airlines that has a fleet size of 357 and has 35,000 employees!!!!!!!!!!!!!!!!!!!!!!!!!

 

[airmarshal]

Well no matter how honest and perfect the plan is, the Courts in Pakistan play the role of spoilers. Just recently Sind High Court ordered a stay on retiring the Steel Mill staff. I dont know why court has to interfere into each and every administrative affair. Something needs to be done to fix the court.

"Malik said PIA is facing a monthly deficit of about PKR6 billion ($36.5 million), while yearly expenditure on the salaries of the airline’s 14,000 employees alone is PKR24 billion."


That is Rs 24b of taxpayers money going down the drain every year to uneducated dungar patwaris and jiyalas, then people wonder why PIA is always floundering. PTI should come out with a golden hand shake and fire atleast 10k of these useless employees. A fleet size of 31 planes and 14,000 employees!!!!!!!!

Contrast this with Turkish Airlines that has a fleet size of 357 and has 35,000 employees!!!!!!!!!!!!!!!!!!!!!!!!!

Who hired those 14k employees? The pilots association is a political body. Its does not let impartial investigation take place. This is why in last decade we had 3 air accidents and 2 fr PIA in last 4 years. There are pilots with fake licenses and degree. This recent PIA accident was a pilot fault. He literally crashed the plane on the engines! This what happens when political appointees get hired through sifarish. No wonder PPP had been so vociferous for PALPA representation in the investigation team.

 

[Safriz]

Now wait for the rotten to the core judiciary to jump in and destroy the plans.

 

[MayaBazar]

"Malik said PIA is facing a monthly deficit of about PKR6 billion ($36.5 million), while yearly expenditure on the salaries of the airline’s 14,000 employees alone is PKR24 billion."


That is Rs 24b of taxpayers money going down the drain every year to uneducated dungar patwaris and jiyalas, then people wonder why PIA is always floundering. PTI should come out with a golden hand shake and fire atleast 10k of these useless employees. A fleet size of 31 planes and 14,000 employees!!!!!!!!

Contrast this with Turkish Airlines that has a fleet size of 357 and has 35,000 employees!!!!!!!!!!!!!!!!!!!!!!!!!

You have to change your thinking.

PIA is providing jobs for 14000 Families.

 

[Imad.Khan]

You have to change your thinking.

PIA is providing jobs for 14000 Families.

Please tell me what business runs profitably with the number of employees in excess to its requirement?

 

[Safriz]

You have to change your thinking.

PIA is providing jobs for 14000 Families.

Yeah, likewise Ethiopian airlines is providing employment to 14000 people, but for a fleet of 126 planes and earning profit.

 

[Patriot forever]

Well no matter how honest and perfect the plan is, the Courts in Pakistan play the role of spoilers. Just recently Sind High Court ordered a stay on retiring the Steel Mill staff. I dont know why court has to interfere into each and every administrative affair. Something needs to be done to fix the court.

Sindh High Court is a PPP jirga. Do you really expect them to not fight on behalf of their haramkhor workers being laid off.
We need to understand opposition in this country is a mafia, they will use all their appointed loyalists in bureaucracy and judiciary to sabotage and create hurdles in every step the government takes.

 

[Syed1.]

You have to change your thinking.

PIA is providing jobs for 14000 Families.

We can employ these families in ten billion tsunami project rather than risking the lives of the thousands of passengers who trust PIA everyday.

 

[El Sidd]

Just get more planes.

They are cheap these days. The demand is there.

No point in giving up when you can make it work.

 

[Pandora]

Railways need to run on similar basis and we seriously need to get rid of that fat toad sheeda tali.

 

[El Sidd]

I always wonder why PAF does not run PIA?

Fighter pilots don't go well with commercial planes.

There are massive cut offs in most major airlines. The labor will always be there. Just get some planes on lease.

Air connectivity must compliment road and rail CPEC routes.

 

[Safriz]

Not everything is for profit.

What profit does Pakistan's military give you?

@waz
@AgNoStiC MuSliM

Can anyone please remove this A.Hole from the thread?
Writing utter rubbish.

 

[jupiter2007]

"Malik said PIA is facing a monthly deficit of about PKR6 billion ($36.5 million), while yearly expenditure on the salaries of the airline’s 14,000 employees alone is PKR24 billion."


That is Rs 24b of taxpayers money going down the drain every year to uneducated dungar patwaris and jiyalas, then people wonder why PIA is always floundering. PTI should come out with a golden hand shake and fire atleast 10k of these useless employees. A fleet size of 31 planes and 14,000 employees!!!!!!!!

Contrast this with Turkish Airlines that has a fleet size of 357 and has 35,000 employees!!!!!!!!!!!!!!!!!!!!!!!!!

Sell it cheap to Air China and save tax payers money.

Just get more planes.

They are cheap these days. The demand is there.

No point in giving up when you can make it work.

Majority of airline including American, Delta, United, Southwest airline are reducing 50% of their overheads by selling 20% to 30% of their planes.

 

[Aspen]

@waz
@AgNoStiC MuSliM

Can anyone please remove this A.Hole from the thread?
Writing utter rubbish.

Honestly their point is valid though.

I have not seen the numbers myself but if you do a certain calculation, you can figure out the cost-benefit analysis of cutting costs vs providing employment multiplier.

For example, hypothetically let's say PIA has expenses of $500, PIA decides to fire bunch of people and cut expenses to $250. Now gov't saves $250 on budget and it can spend that extra $250 building new Orange Line in Lahore or something. That $250 will be spent in a single lump sum instead of going to different employees so there will be no multiplier effect if gov't spends that money on Orange Line.

The problem is that let's say every employee gets paid $5. If you fired 50 employees, now you have extra $250, but now the multiplier effect that each $5 you paid to 50 employees is gone since you fired them. Multiplier effect is very important to economy. $5 doesn't sound like a lot, but you multiply it every time that $5 is passed on to next person. Let's say PIA employee goes to buy bread for $5. Then shop owner spends that $5 to buy gas. Then gas company pays $5 to a new employee. New employee spends $5 to buy a phone sim. Cell shop employee spends $5 to get his child school book.

So by firing one PIA employee and saving $5, you have lost $3,125 stimulus to the economy in just 5 transactions. Now if you fired 50 employees, you saved PIA $250, but you have lost $156,250 stimulus to the economy.

Firing PIA employees is literal example of penny wise pound foolish.

Everybody wants to fire PIA employees to save a couple of bucks but in long run, you will lose hundreds of thousands by doing it.

Things are not as obvious as it looks.