Prime Minister Nawaz Sharif chairing a meeting held at PM House to oversee matters related to PIA. PHOTO: PID
Chairing the meeting held at prime minister’s house in Islamabad, Nawaz also gave go ahead to devise strategy to settle PIA legacy loans and empower Board of Directors to run the airline on professional basis with special emphasis towards improvement of service standards.
The meeting was also attended by finance minister Ishaq Dar, Special Assistant to prime minister Shujat Azeem, Secretary Aviation Muhammad Ali Gerdazi, DG Civil Aviation Air Marshal (Rtd.) Muhammad Yousaf and Managing Director PIA Muhammad Junaid Yousaf.
“PIA was our national pride and its efficiency and high quality service were its hallmark. It also set examples for other airlines. It is cause for national embarrassment as its performance has deteriorated at breath-taking pace over the past decade. It is now neither efficient nor profitable. It incurred losses around Rs 183 billion. The poor service delivery and over-employment in PIAC have been grave problems. Perhaps some efforts were made to turn it around in the past, but there has been no improvement in its efficiency or profitability. Pilferage also continues unabated in PIAC,” said prime minister.
The premier further said that the government will not interfere in the privatisation of PIA and would encourage the privatisation to be carried out through competitive and transparent process without preemptive downsising.
Showing confidence on PIA’s Board of Directors, the premier said the government would extend its in full cooperation in streamlining PIA.
Nawaz was informed that the national flag carrier is presently in the process of acquiring 11 A320 aircraft on lease with deliveries starting from June 2014. With Additional 05 Boeing 777 aircraft, PIA will be in a better position to offer enhanced services to its passengers, increase revenue, destinations, flight punctuality and reduced maintenance costs
Nawaz was also briefed about the steps that have been taken to overhaul the PIA to restore its glory. The meeting was informed that out of total 34 aircrafts, 24 are operational.
Further, SOPs adopted to reduce operational costs were dilated upon. Among these, the carrier's fuel management SOPs were revised to optimise utilisation, helping it save Rs500 million per annum. A further Rs902 million were saved by closing loss making routes.
The meeting was also informed that 330 employees holding fake degrees were fired, while a task force has been constituted to identify more fake degree holders.
Nawaz directed the PIA board members to hire experienced professionals required to run the airline on commercial basis ensuring profitability and the revival of the past glory of the national flag carrier.
It was also decided in the meeting that PIA Board members will discuss airline matters relating to restructuring and revitalisation of PIA on a regular basis with prime minister.
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Ridiculous they have not been able to appoint Chairman/MD/Directors for past one year, neither the old management is working on any thing because they know they will going nor their is new management......tender notice for aircraft is given every other day but not a single plane is added to fleet and in given situation it is prudent to say no aircraft will be added and their will be no privatization
@Chachoo: You are mistaken my friend. Air travel is not luxury but a necessity including for those Millions of hard working Pakistanis who earn abraod and suppoort their families back home. Gulf countries with no passenger base of their own are running efficiant and very much airlines of their own . Why cant we , with our one of the largest passenger base as well as cheap manpower to run it. All it is needed is a good governanace. NS is trying hard though not enough. we need to support the efforts.
@Patriot: have you have any idea on which routes PIA is currently operating and number of passengers it carried? don't make funny statements like acquiring aircraft for personal use,,, to just appear in the comments, make some search first and put some argument. Thanks
@Asif: PIA already have nine Boeing 777 in its fleet, the fact is when PIA had acquired those aircraft some eight years back did also acquired option to acquire further five 777s. in other words the approval for further buying is just exercise of that available option. now weather is it a right decision to exercise the option the answer is yes, 777 is one of most successful long range aircraft indeed the only planes in PIA's fleet to generate some revenue. buying of airbus long range aircraft such as Airbus A330 or even A340 would be more expensive as company as no option to buy and also having no technical expertise, spare parts, crew training etc to handle Airbus long range aircraft. further 767 and 787 are not long range aircraft, you are making wrong comparison.
The main issue in respect of PIA is mismanagement. All possible should be done to make PIA a profitable organization.
Employees with fake degrees should not only be fired but charged under section 420 PP C and sentenced to a few years in Mianwali or Sukker Central jails the jails with the worst reputation..The pay checks they received over the years of fake employment should be recovered by sale of their homes if need be ....then only the right message will be sent otherwise it is one big joke the Ehtesaab ..PML is always talking about ..
What nonsense ...to put more public funds into a failed business which should be sold immediately ...ni if and or butt s...
For their own personal travel...
The list price of five 777 is and total transaction amount is over billion dollars. What qualifies Nawaz Sharif, a foundry man, to select BOEING 777 over 787 or 767 or Airbus A350 or A330 or A340? What is post sale services and maintenance cost?
Why buying new planes with people's money, and then selling the national asset to the front companies. After 4 more years Mr. Charles Sobhraj will again be in saroor palace for good.
Since Air travel is the choice of travel for the higher middle class mostly, so Nawaz Sharif is urging to buy more 777s that will cost more than 1.5 Billion US Dollars. On the contrary for the Railways they have no money at all and Our Politicians are urging Railways to generate their own revenue to expand. But why our Politicians should care for the Railways as it is used by lower middle class and is not a priority at all.
http://tribune.com.pk/story/699045/railways-use-own-resources-to-raise-revenue/
If the intention is to sell it than why to buy new planes??
Mian Sahab, whatever people say about you and your politics, the fact is that some things is always happening in your rule. There are always positive steps towards prosperity, though, slow. I hope your PMLN can tackle menace of poor governance.