Pakistan International Airlines (PIA) pilots, crew and ground staff downed tools on Monday morning, demanding it scrap a proposed codeshare agreement with Turkish Airlines, sack its managing director and reinstate colleagues put on leave.
The first attempt to negotiate a solution ended after two hours at Islamabad airport.
"The talks have failed, there is a complete deadlock," union committee leader Suhail Baloch told reporters. "The strike will continue until the government agreed to our demands."
Khurshid Shah, the head of the government negotiating team, said the talks had been "adjourned" but did not give any timeframe for their resumption.
He denied that the ailing state carrier had signed a deal with Turkish Airlines under which unions say PIA would surrender lucrative routes to Germany, Italy, the Netherlands, Spain and US destinations New York and Chicago.
"I have told them there is no such agreement," Shah said.
Prime Minister Yousaf Raza Gilani has called for a negotiated settlement "in the larger interest" of the national carrier, which last year asked the government to write off losses of $1.7 billion to save it from bankruptcy.
PIA managing director Aijaz Haroon, who is considered close to President Asif Ali Zardari but faces mounting calls to resign, told AFP that the management was working to restore flight operations as soon as possible.
The strike has cost PIA $3 million, with company officials saying at least 30 flights had been cancelled, including journeys to Britain, the Middle East, Europe and Asia.
Airline spokesman Mashhood Tajwar said about 5,000 travellers had been affected.
Dozens of PIA staff blocked a road outside Islamabad airport on Wednesday, causing traffic mayhem and shouting "even a dog would be insulted to be called MD (managing director) PIA" and denouncing the Turkish Airlines proposals.
Passengers who turned up at the airport were left standing around complaining about the disruption.
"I've been waiting here for the last four hours. PIA people say the flight is okay, but the security people aren't allowing us to proceed to check-in," Gulfraz Majeed, a 52-year-old en route to the north of England, told AFP.
"Once I reach Britain, I'm going to sue PIA and demand compensation. They're bound to give us a hotel and alternate flight, but they haven't bothered to offer us a single cup of tea," Majeed said.
National airlines can’t negotiate with foreign countries without approval
A spokesman for the Ministry of Defence today said that national airlines cannot negotiate with foreign countries without prior approval.
He said the Ministry of Defence was evaluating the Record of Discussion which was signed between PIA and Turkish Airlines to determine its implications.
The Ministry would be in a position to determine the appropriate course of action after its evaluation, he said.
He also clarified that the Record of Discussion could not be termed a Memorandum of Understanding (MoU).
The spokesman said that the tussle between the PIA management and its employees was due to differences over the financial and commercial aspects of the Record of Discussion.
NA committee slams PIA, Defence Minister
Defence Secretary Syed Athar Ali and Aijaz Haroon appeared before the National Assembly’s Standing Committee on Defence today, Express 24/7 reported.
Haroon admitted to the committee that it was a mistake to not inform the Defence Ministry in writing about talks with Turkish Airlines but he said that no law had been violated in holding talks.
Meanwhile, the Defence Secretary Ali differed with the views of Haroon, saying that PIA’s negotiations with the foreign airline were against the law.
A member of the committee, Sardar Mehtab Abbasi, has demanded a criminal probe into the crisis.
Similar views were expressed by another member, Sardar Haider Ali Shah, who said that the Defence Minister and the managing director of PIA should be handed over to the National Accountability Bureau (NAB) for a probe.
Show-cause notices suspended
The Sindh High Court (SHC) suspended show-cause notices issued to the PALPA president and secretary.
The Defence Ministry had served show-cause notices to two PALPA leaders, Sohail Baloch and TM Rabbani, for instigating the employees to strike.
Baloch and Rabbani’s lawyer filed a petition in SHC – stating that his clients have challenged the compulsory service act for PIA pilots. He said the show-cause notices were issued to pressurise his clients.
Suspending the notices, the court has summoned PIA and the Defence Ministry officials on February 17.
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