Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Discuss issues and news related to PIA, Pakistani airlines and Pakistan's civil & military aviation.
Post Reply
User avatar
Abbas Ali
Site Admin
Posts: 52151
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan
Contact:

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by Abbas Ali »

Prime Minister Shahid Khaqan Abbasi while talking to Geo News programme ‘Jirgah’ said:

* PIA is suffering daily loss of around 15 million rupees.

* Government had suffered $ 4.5 billion losses to run the national flag carrier. "How long we will continue to face losses?", he asked. It was his personal and professional opinion that without wasting more time and money PIA should be privatized so that it could compete with other airlines. If a province wishes to buy the airline then it should, he said.

Abbas
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
Mansoor Mela
Registered Member
Posts: 111
Joined: Sun May 07, 2017 1:55 pm

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by Mansoor Mela »

Less than 4.5 months left in their actual tenure and now they want to sell a national asset. Every time they have tried and failed, things have become worse for PIA.
If Imran Khan wins next elections, PIA will turn around while still remaining an asset of the government of Pakistan.
PIA's enemies want two things; 1. Pakistan's enormous passenger market ( both to and from), and 2. The Roosevelt. Unless PIA is killed, they cant have them.
Pakistan-1
Registered Member
Posts: 1310
Joined: Wed Jan 07, 2015 4:40 am
Location: Hong Kong/VHHH
Contact:

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by Pakistan-1 »

All I see is that they are trying to create a major crisis for the next government,whoever it is

P.S. If they seriously go with the Privatisation plan maybe Imran Khan should ask Jahngeer Tareen to buy a large amount of shares in the airline, so that Pakistanis can still have a say in the new private PIA
Image
Special Concept Livery to celebrate Pakistan's 70th year of Independence
mohammad
Registered Member
Posts: 52
Joined: Mon Oct 03, 2016 8:50 am

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by mohammad »

Mansoor Mela wrote: Thu Jan 18, 2018 2:12 am Less than 4.5 months left in their actual tenure and now they want to sell a national asset. Every time they have tried and failed, things have become worse for PIA.
If Imran Khan wins next elections, PIA will turn around while still remaining an asset of the government of Pakistan.
PIA's enemies want two things; 1. Pakistan's enormous passenger market ( both to and from), and 2. The Roosevelt. Unless PIA is killed, they cant have them.

First of all PIA is a national debt not an asset. Majority of Pakistanis are sick of seeing their taxes going to waste to prop up PIA. It has been on life support for decades, let it die peacefully.
We do not elect governments so they can run airlines or trains, especially if they are soo inefficient and a drag on resources. Govt should only create conditions for private companies to provide these services. With unionised staff running around smuggling everything from drugs to mobile phones, PIA will never be as efficient as other airlines.

Imran Khan is welcome to turn PIA around, but with his own money not ours.
Mansoor Mela
Registered Member
Posts: 111
Joined: Sun May 07, 2017 1:55 pm

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by Mansoor Mela »

Government has only provided sovereign guarantees on PIA"s behalf
Not a penny of your money. Get your facts right before commenting on something you know nothing about.
PIA is job provider and a National asset.
Its just that the rulers have sold out its bread and butter behind its back to Arabs. Imran will rationalize Air Services Agreements where severe disparity exists. Rest will fall in place.
mohammad
Registered Member
Posts: 52
Joined: Mon Oct 03, 2016 8:50 am

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by mohammad »

https://www.dawn.com/news/1367735

PIA is a chronic recipient of bailout packages in the form of capital injections through the budget or commercial loans from banks against sovereign guarantees because of its continuous losses. Its current liabilities are estimated on the higher side of Rs300bn. Most of these liabilities have contingent ramifications on the federal budget.

Sovereign guarantees are not candies that you can just dish out to anyone with no consequences. Government should have more important things to worry about that run an airline. PIA even makes losses on routes where they have zero competition on direct flights (New York being the latest case).

Further, what is an airline doing owning hotels? How many hotels are owned by Emirates or Etihad? PIA cant even fly to New York but want a hotel there! brilliant.
Mansoor Mela
Registered Member
Posts: 111
Joined: Sun May 07, 2017 1:55 pm

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by Mansoor Mela »

Dont know how many hotels Ek and Ey own but I do know that they are state owned and their owners have poured in 42 billion dollars in cash over the last few years into them in direct subsidies.
The Roosevelt is not just a hotel
Google it. Read the book Art of The Deal by Donald J. Trump.
PIA hss done many things it had no nusiness of doing. E. G. Setting up farmed chicken establishment when country needed it most. Setting up PIA Precision Engineering to sid national security. Carrying almost entire Pakistan Hockey on its shoulders. Same for Squash and a great contribution to cricket too.
Rationalization of ASAs to restore balance of trade if done in a judicious manner will provide the necessary impetus. Once that is done
The rest are just management issues
. But if the owners have personal businesses in the states who have stolen traffic from PIA illegally then what can poor PIA do. The Arabs are fiercely protective of their Airlines and will go to any extent to get them business from the subcontinent and elsewhere.
If our government is doling out traffic rights to them like candies without getting anything in return then this wss bound to happen.
IMHO their is too much inherent strength in PIA thats why it refuses to die. And its present state is reversible.
User avatar
Abbas Ali
Site Admin
Posts: 52151
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan
Contact:

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by Abbas Ali »

Image
PIA employees in Faisalabad protesting against privatization of the airline.

Abbas
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
mohammad
Registered Member
Posts: 52
Joined: Mon Oct 03, 2016 8:50 am

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by mohammad »

Mansoor Mela wrote: Thu Jan 18, 2018 10:01 pm Dont know how many hotels Ek and Ey own but I do know that they are state owned and their owners have poured in 42 billion dollars in cash over the last few years into them in direct subsidies.
The Roosevelt is not just a hotel
Google it. Read the book Art of The Deal by Donald J. Trump.
PIA hss done many things it had no nusiness of doing. E. G. Setting up farmed chicken establishment when country needed it most. Setting up PIA Precision Engineering to sid national security. Carrying almost entire Pakistan Hockey on its shoulders. Same for Squash and a great contribution to cricket too.
Rationalization of ASAs to restore balance of trade if done in a judicious manner will provide the necessary impetus. Once that is done
The rest are just management issues
. But if the owners have personal businesses in the states who have stolen traffic from PIA illegally then what can poor PIA do. The Arabs are fiercely protective of their Airlines and will go to any extent to get them business from the subcontinent and elsewhere.
If our government is doling out traffic rights to them like candies without getting anything in return then this wss bound to happen.
IMHO their is too much inherent strength in PIA thats why it refuses to die. And its present state is reversible.
If what you say is true, than it is a perfect example of "Kawa chala hans ki chaal"
PIA is an airline first and foremost. Any other activity like hockey, squash or chickens is secondary. When passengers buy a ticket they expect decent and reliable service, not a conglomerate where airline is substandard but primary focus is on chickens or hotels.

Other airlines like poor Airblue and Shaheen have been able to turn around profits in the same market, with the same corrupt leaders and same Arabs who love their airlines. The problem is that PIA will point fingers at everyone except themselves.
Mansoor Mela
Registered Member
Posts: 111
Joined: Sun May 07, 2017 1:55 pm

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by Mansoor Mela »

Hotels are stretegic investmenrs, the rest are services PIA performed for the nation as per orders of the state. Roosevelt is worth almost one billion dollars now. Anyway it is not my purpose to argue with anyone
As a consumer everyone has the right to have their own opinion.
User avatar
Abbas Ali
Site Admin
Posts: 52151
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan
Contact:

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by Abbas Ali »

Today, Prime Minister Shahid Khaqan Abbasi said:

* 450 billion rupees are due to be paid by PIA to the government.

* PIA privatization will be done through open tender process.

* PIA employees unions can buy the airline if they want to.

Abbas
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
ammad
Registered Member
Posts: 1710
Joined: Sat Dec 17, 2005 10:52 am
Location: San Francisco. C.A.
Contact:

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by ammad »

In my opinion Roosevelt price is between 1.5 to 1.8 billion dollars now.
Fortune favours brave.
imiakhtar
Registered Member
Posts: 264
Joined: Sat Dec 01, 2007 9:41 pm
Location: BHX/MAN

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by imiakhtar »

ammad wrote: Fri Jan 19, 2018 7:30 pm In my opinion Roosevelt price is between 1.5 to 1.8 billion dollars now.
Your opinion has no basis in reality.

At the last appraisal 18 months ago, the scribe and roosevelt were valued at most 700m USD total.

If you've ever had the misfortune of staying at the Roosevelt, you would know it is in an extremely poor state of repair. The only positive is the location.
Feel free to add me to your MSN!
ammad
Registered Member
Posts: 1710
Joined: Sat Dec 17, 2005 10:52 am
Location: San Francisco. C.A.
Contact:

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by ammad »

imiakhtar wrote: Fri Jan 19, 2018 11:59 pm our opinion has no basis in reality.

At the last appraisal 18 months ago, the scribe and roosevelt were valued at most 700m USD total.

If you've ever had the misfortune of staying at the Roosevelt, you would know it is in an extremely poor state of repair. The only positive is the location.
You actually have no idea how the property price are going in Manhattan area and New York in general. Not sure if you ever been to it. The thing you said "only positive" is not the pretty simple positive. Location is prime and very important.

Usually property value accessed for tax purpose and what PIA did was in past is on very defensive side. And in last two years property price have easily hiked to another 25 to 30 percent.

Average one room condo in the same area is worth approximately close to a million dollar. Now you can imagine the price of Roosevelt Hotel.
Fortune favours brave.
Mansoor Mela
Registered Member
Posts: 111
Joined: Sun May 07, 2017 1:55 pm

Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

Post by Mansoor Mela »

The 700 Million valuation for Roosevelt and Scribe was if Mansha was to buy it.
PIA's owners, the government of Pakistan, since 1990s has been in the hands of one mafia after another and they have been plundering PIA in most innovative ways. Just see the prime real estate Shujat Azeem's Royal Airport Services occupies at our airports and compare it to pre 2013.
Almost 7 years ago MD PIA Investments, Najeeb Sami told me that Roosevelt was worth 800m and Scribe about 250 m. So how could this government's valuation 18 months ago be even lower than that
Every one including Donald Trump has their eyes on Roosevelt .
.
Post Reply