Revival of PIA-Turkish Airline deal feared

[SHAMK9]

KARACHI: Pakistan International Airlines (PIA) and Turkish Airline ‘code-sharing’ deal having departure of two managing directors – one resignation and one termination - on its credit is feared to come alive, said aviation sources on Friday.

Sultan Hasan, spokesman for PIA, said that there is no truth in these rumours. He said that this is a false information, which is purposefully being disseminated by vested interests.

Two of the four candidates vying for the lucrative position of PIA managing director are in favour of the code-sharing rather load-sharing deal with the Turkish Airline, said aviation sources.

Aijaz Haroon, Hyder Jalal, Ashraf Manoo and Naveed Aziz are the names echoing in the aviation circles for the position.

Capt Aijaz Haroon, former PIA managing director, was ousted in 2010 as a result of a complete strike by the employees of the airline for his alleged involvement in a deal with the Turkish Airline to shut down PIA by selling its US and Europe-bound traffic rights.

Second in line was Rao Qamar Suleman, who recently resigned, citing health issues after a minor heart surgery. Sources in the ministry of defence said he had put his foot down against revival of the same Turkish Airline deal in the name of code-sharing, termed as load-sharing by the employees.

Officials in the Joint Action Committee of PIA employees said that a media campaign was launched in June this year, depicting the PK-TK (Turkish Airline Agreement) being finalised at the ministry of defense having support from the top office, but Suleman in his address to employees denied allowing any such move.

Recently resigned PIA chairman busted this highly dangerous scheme to save the national airline, the sources said.

According to sources, the former managing director Haroon, now a consultant at the Turkish Airline once again tried his best to revive the agreement with the Turkish Airlines citing support from the top political figure. Though Suleman resisted a lot and did not let this happen in his short span of time as PIA chairman, this could be made a reality anytime soon now, said the sources, adding that the new management did try to shut down its offices in Amsterdam and Frankfurt, citing losses on these routes and shortage of aircraft.

Turkish Airline plans to close down their low average fare routes of Dhaka and Kathmandu and getting relatively high average fare routes, which PIA is giving up, including Amsterdam, Paris, Milan, Barcelona, Frankfurt, New York and Chicago.

It is also beyond comprehension that why PIA desired to close down North American flights that were meeting direct operating cost (DOC), said the sources.

They also said that Suleman’s stance was that as per the MoU between the two airlines, the national airline will suspend its operation to Milan, Barcelona, Amsterdam, Frankfurt and Paris, and Pakistani passengers beyond Istanbul will have to travel via Turkish Airline to these destinations facing inconvenience in the process.

The agreement appears strange, as PIA that has shown profit on North American routes (New York and Chicago) in 2010 suddenly decided to stop flying to North America and get only 15 percent from Turkish Airline on those passengers who buy tickets from PIA on Istanbul, North American sectors.

“The slots available with PIA for JFK and New York are very valuable and this can be one of the major reasons why Turkish Airline is trying to take over JFK and Chicago,” Suleman said, adding that once we lose the slots of JFK, it will be very difficult to get them back, as they cost a fortune of money.
Revival of PIA-Turkish Airline deal feared - thenews.com.pk

 

[AZADPAKISTAN2009]

I normally prefer PIA travel , however if I am travelling and stopping in Turkey I have no problem to use Turkish airlines from there to next destination.

But it seem lot more work and effort to move items from one flight to other and change planes so I prefer direct flights

 

[SHAMK9]

I normally prefer PIA travel , however if I am travelling and stopping in Turkey I have no problem to use Turkish airlines from there to next destination.

But it seem lot more work and effort to move items from one flight to other and change planes so I prefer direct flights

This deal will bring more good to PIA than bad, Turkish airlines will offer Pakistani food and PIA's air hostesses will be present on Turkish airlines planes, the deal was cancelled because of greedy pilots who made dollars from north american flights.

 

[Edevelop]

The deal sounds interesting, but as a Pakistani nationalist, i would prefer PIA competing even against Turkish Airlines someday. I still believe we can dominate again, but this time by taking immediate steps to root out corruption and making it-autonomous.

If the deal gets signed, don't we risk loosing flghts to Europe and North America? what is PIA going to do with current and further expected deliveries of Boeing 777s?

 

[airmarshal]

The deal is very shady.

The slots they are talking about giving will not be easy to get back as they are very, very expensive. Not just that, PIA is also planning to buy new 777s. So what will they do with such long haul planes? Fly them to Lahore and Karachi?

Code sharing deal is not a problem. It happens everywhere. PIA's problem is mismanagement. The deals are therefore not for strategic business interests but to hide mismanagement and corruption.

Turkish Airlines is part of Star Alliance. This is a code sharing alliance with premium airlines of the world. Instead of making PIA competitive and make it a premium airline which it was under Nur Khan, they are thinking of giving away the slots which will make PIA a regional airline only. That to me is a stupid business decision expected only from those who have personal interest or who are downright incompetent.