Aircraft-to-employee ratio in PIA currently stands at 552 per aircraft compared to global average ratio of 120. PHOTO: REUTERS/FILE
Privatisation of Pakistan International Airlines (PIA) to improve its performance and save the national exchequer from further drain is the best option available, said President Islamabad Chambers of Commerce and Industry Zafar Bakhtawari, reacting to the approval of a Rs7 billion bailout for the public enterprise by the Economic Coordination Committee of the Cabinet.
According to PIA’s own report, the airline has suffered losses worth Rs119.84 billion over the last ten years, he said. Flight delays and cancellation has become the norm of PIA pushing its flight delay ratio to more than 35%. Out of the 34 aircrafts in PIA’s fleet, 24 are serviceable while the aircraft-to-employee ratio in PIA currently stands at 552 per aircraft compared to global average ratio of 120.
All these indicators call for urgent restructuring of the airline and preparing it for privatisation to bring professionalism in its operations.
Published in The Express Tribune, July 14th, 2013.
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we must go for it. as there is no other option. the privatization will allow to reduce the no of employees which are burden on PIA and it will be run by professionals. GO FOR IT AND DO NOT BULGE UNDER ANY POLITICAL PRESSURE AS NATIONAL INTEREST IS SUPREME.
only three actions needs to be taken to raise PIA on its feet again. 1) Sell all those aircraft engines which cannot be maintained in PIA engine overall. 2) Start PIA cargo service again (imagine a country without a local air carrier service) 3) Stop buying Boeing aircraft's under the influence of American political pressure. I am an aircraft technician in PIA and I know how our own leaders have crushed this airline.
@Malik: Malik sahib, kids of your kids will swear and curse on all of us for handing over them this kind of economy and Mullahs with "NORANI CHEHRAAY" for their spiritual needs.
@Nadir: "who is going to buy it given the state it is in" Nadir Sahib, who else, HOLY BROTHERS or SWEETER THAN HONEY ALL WEATHER FRIENDS.
Privatizing PIA just like PTCL (giving management rights by selling 26% shares) is a viable option, probably the best option. The government will keep major stake in the airline and it will be run by professionals. Otherwise, even if the current government turns it over, the moment PPP govt comes in future, they will stuff the airlines once again with political hiries.
The situation now is so bad that most don't even consider PIA as an option for international travelling.
PIA lost Rs119 billion in 5 years, not 10 years. In March 2008 the loss was Rs 42 billion, which in March 2013 are over Rs160.5 billion.
Rumors already floating in market regarding private foreign airline is interested to take PIA
Privatizing is an option....however who is going to buy it given the state it is in?