Pakistan International Arlines (PIA) : News / Updates

[FuturePAF]

As usual we never look at the root cause. How can PIA be profitable when dacoits are eating from it, steel mill was similar. They can keep PIA as it is but hire professional workforce but that will not happen because safarishi will come or people in power will plot against the professional workforce until they fail and then safarishi come. This is the problem in all fields and people love it.

Air India is good example of an airline to look at. Privatized back to its old owners, but not keeping up professional standards will earn a bad reputation.

Even in first class, $6300/ticket, Air India can’t keep simple things clean. Now this video will be seen by many Americans, who will then go on to choose a different carrier, if they must go to India. The airline with the name of the country, also gives a bad reputation to the whole country, as the flag bearing carrier.

Top comment for this video “They don’t want you to get off the plane and be culture shocked, They ease you in.”

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[Musings]

Look at history. PIA one of the most iconic successful impeccable safety record has been dragged through the mud by our leaders. Milking it - poor management and an abundance on unnecessary pensions.
Tragedy

 

[Oscar]

Look at history. PIA one of the most iconic successful impeccable safety record has been dragged through the mud by our leaders. Milking it - poor management and an abundance on unnecessary pensions.
Tragedy

An I still the only one wondering what happened to the auction that was supposed to be 3 days ago?

 

[Jango]

An I still the only one wondering what happened to the auction that was supposed to be 3 days ago?

I think I read somewhere that the bidders put up more demands, they did not want to keep the employees and some more issues, so the process got delayed.

 

[Musings]

I think I read somewhere that the bidders put up more demands, they did not want to keep the employees and some more issues, so the process got delayed.

The bidders will be buying a liability and the only asset worth value will be the actual routes. There are too many hangers on and a buyer will want to offload this

 

[FuturePAF]

The jetliners, routes from Pakistan to foreign countries are worth hundreds of millions

Even more so now. Pakistan is part of only two routes between Asia/Australia and Europe/US via the Eastern hemisphere.

Pakistan should not just leverage this route but its new built airport to attract foreign investors to be minority shareholders in PIA, as well as perhaps setting up a cargo based PIA subsidiary airline.

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Islamabad airport should look at a model similar to the need to use anchorage during the Cold War

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Btw, for many of the northern Indian cities, if there weren’t able to access the route westward, over Pakistan, to Europe would be less attractive for many Indian and even international carriers going to India.

Perhaps one of these international airlines (non-Indian) could become a minority owner in a new PIA.

As for the employee issue with PIA. PIA may have to create a holding company that absorbs the “bad debt” of these extra workers and only allows the most skilled and proven workers to be retained by PIA proper. The holding company can then go on to give the workers a buy out pension and end their employment.

PIA could also seek minority ownership by the domestic airlines.

 

[nahtanbob]

Even more so now. Pakistan is part of only two routes between Asia/Australia and Europe/US via the Eastern hemisphere.

Pakistan should not just leverage this route but its new built airport to attract foreign investors to be minority shareholders in PIA, as well as perhaps setting up a cargo based PIA subsidiary airline.

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Islamabad airport should look at a model similar to the need to use anchorage during the Cold War

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Btw, for many of the northern Indian cities, if there weren’t able to access the route westward, over Pakistan, to Europe would be less attractive for many Indian and even international carriers going to India.

Perhaps one of these international airlines (non-Indian) could become a minority owner in a new PIA.

As for the employee issue with PIA. PIA may have to create a holding company that absorbs the “bad debt” of these extra workers and only allows the most skilled and proven workers to be retained by PIA proper. The holding company can then go on to give the workers a buy out pension and end their employment.

PIA could also seek minority ownership by the domestic airlines.

If I was allowed to purchase the airline and fire non-performing employees we are talking about making an entity worth $1-$5 billion easy.

 

[FuturePAF]

If I was allowed to purchase the airline and fire non-performing employees we are talking about making an entity worth $1-$5 billion easy.

16 planes and very lucrative routes, with a major hotel in midtown manhattan. Easily worth at least a billion. Needs investment and good management with Japanese level of detail to cleanliness and service, but could win back at least enough of the overseas Pakistani market if their schedules were linked with domestic airlines to make the connecting flight times shorter and more smooth than their competitors, such as emirates.

 

[razgriz19]

PIA is a perfect example of what's happened to the nation as a whole. So much potential early on, only to be burdened by greed, corruption and utter incompetence. Now the airline just like the nation is being sold to the highest bidder. When will we learn?

Incompetence and corruption.
And it will be sold to the lowest bidder as no same entity would buy it, other than just buying the assets and bankrupting rest of the organization.
Noone would buy a business that's making loss and has more debt than it makes money

 

[FuturePAF]

Air India is good example of an airline to look at. Privatized back to its old owners, but not keeping up professional standards will earn a bad reputation.

Even in first class, $6300/ticket, Air India can’t keep simple things clean. Now this video will be seen by many Americans, who will then go on to choose a different carrier, if they must go to India. The airline with the name of the country, also gives a bad reputation to the whole country, as the flag bearing carrier.

Top comment for this video “They don’t want you to get off the plane and be culture shocked, They ease you in.”

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Singapore’s Lee Kwan Yu called Air India a Family heirloom. The same could be said of PIA

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[nahtanbob]

Air India is good example of an airline to look at. Privatized back to its old owners, but not keeping up professional standards will earn a bad reputation.

The key question is whether Air India was allowed to fire bad employees under private management

 

[ACE OF HEARTS]

After privatisation, Tata owned Air India announces VRS scheme for its over 9,000 employees

Months after India’s national carrier Air India was sold to the Tata Group after a competitive bidding, the Group has announced VRS scheme for its over 9000 employees

www.nationalheraldindia.com

Writ Petition Not Maintainable Against Tata Communications Limited As Govt Doesn’t Enjoy Financial Control Over Entity: Delhi HC

The Delhi High Court held that as per Article 12 of the Constitution, a writ petition is not maintainable against Tata Communications Limited as the Government does not enjoy financial control over...

www.verdictum.in

The judiciary didn't intervene after privatisation of Air India, in employment related matters.

Golden hand shake type of retirement scheme was introduced to let go off useless employees and simultaneously, hiring of competent people was done.

It's so easy to follow the blueprint of your enemy cum neighbour but politically motivated useless conditions, are going to delay the privatisation further, for the benefit of few employees, with good political contacts, causing ever more harm to the national exchequer and deteriorating the hard established working relationship with the IMF.

Similar is the case with other state owned enterprises specially the eletric distribution companies.

 

[FuturePAF]

The key question is whether Air India was allowed to fire bad employees under private management

Should have been a precondition of it going private. Makes no sense to privatize and not have a plan lined up on day 1 as to whom you expect to let go and whom you expect to keep on, or at the very least, a plan to figure that out and the government on your side to implement it, come what pressure may from the union or employee advocates if there is one.

 

[nahtanbob]

Should have been a precondition of it going private. Makes no sense to privatize and not have a plan lined up on day 1 as to whom you expect to let go and whom you expect to keep on, or at the very least, a plan to figure that out and the government on your side to implement it, come what pressure may from the union or employee advocates if there is one.

well my guess is that the buyer agreed not to fire employees in the short & intermediate term in return for the deal. If the PIA is worth $1 billion Air India is worth 10x.

 

[clutch]

Good riddance to bad garbage.

PIA should be hurt down.

PIA is just a toilet for corrupt Generals and the corrupt Pakistani Government