PM Imran Khan receives ‘detailed roadmap’ on PIA reform

[Safriz]

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.

An airline or any organisation is not a charity and needs to make money to remain operable.
The idiot above was making comparison of PIA with military.
You don't ask the military or police or judiciary to make profit as they are not supposed to do that
But an airline, shipping company, or any similar organisation is supposed to make money.

 

[Awan68]

You have to change your thinking.

PIA is providing jobs for 14000 Families.

The profit the military gives us is freedom, it is the most basic of human needs, way above food for anyone with dignity, but i guess u wouldnt understand as the meaning of the word seems to escape u. Dont worry some bloodlines have no dignity, marasis and pimps, i guess u are one of them.

 

[Trango Towers]

All excess employees need to be terminated. The ailine needs younger staff with new employment contracts. No retired air hostesses. No sultan Rahi wala mustache serving meals. No drunk pilots. Proper management answerable to the people. Proper entertainment system on the aircraft and maintenance to international standards. If the airline makes a loss the bosses have to take a severe salary cut.

 

[Imad.Khan]

Not everything is for profit.

What profit does Pakistan's military give you?

thats the dumbest thing i have ever read. How old are you?

 

[Cookie Monster]

"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!!!!!!!!!!!!!!!!!!!!!!!!!

PIA just like other state owned entities is overly bloated with many sifarishi employees who are honestly not needed. It needs to be lean with only competent ppl doing their jobs.

 

[blueazure]

You have to change your thinking.

PIA is providing jobs for 14000 Families.

i would suggest not poking your nose in matters you have no understanding about , esp your neighbours!

 

[Armchair]

Float stocks of PIA in the stock market and slowly privatize it via this method. Once ownership goes to private hands, watch how they axe the employees.

 

[fitpOsitive]

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

I have a nicer plan.
Sell out every organization which is not performing well.
Automatically logon ko perform kerna paryga, nai tu dafa hon, bojh kam ho zameen ka.
Text collection ka theka bhi private firms ko dydia jaey. Target set karain, and get your money.
Piracy laws lagain, or firms ko ijazat dain qanooni qarwai ki.
Private investment companies bnain, logon ko shares bechain, Jo paisy collect hon unsy dams bnain, logon ko monthly income dain.
Govt ko na tu senti hony ki zaroorat hai na her chez main ghusnay ki.

 

[blueazure]

Float stocks of PIA in the stock market and slowly privatize it via this method. Once ownership goes to private hands, watch how they axe the employees.

its public

 

[maithil]

https://twitter.com/x/status/1270975527915008000

 

[Thorough Pro]

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

 

[Bil]

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.

I see where you are coming from, however, rational behind letting these "employees" go is that majority of them are "politically hired", which means,

A) Highly likely they dont possess credentials and skills or abilities to do their job. Many dont even show-up at work, however, collect salary consistently.

B) Due to "political hiring" many deserving candidate dont get the position which they deserve.

This is the reason why many wants to let go number of employees, specially those who are political appointees and its not difficult to identify those in the system.

 

[Enigma SIG]

You have to change your thinking.

PIA is providing jobs for 14000 Families.

They are. At the expense of people who die in crashes because those 14000 people just couldn't give a damn.

 

[Asian.Century]

PIA CEO air marshal Arshad Malik met the PM to discuss PIA situation.
Here are main points of the meeting.

10 CEO changed over the last 12 years.

6 billion PKR per month loss

14000 staff for a fleet of just 31 planes.

Staff salaries 24 billion PKR per year.

Is there any comparable airline, worse than this?

 

[Syed1.]

Not sure how authentic this source is

https://twitter.com/x/status/1274628692916998145