PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

[riz]

Politics apart? With 95% of the work force inducted on the basis of 'qouta' , political and provincial . The mess cant be taken care of. However there still are people amongst the same work force who are fit for the job.

[TAILWIND]

Welcome to a healthy discussion now.
You are right. Political appointees and quota based inductins have played a detrimental role and all have been appreciative of the core professionals who managed to keep the airline afloat atleast technically. Sadly though many of these core professionals too started swimming with the tide instead of showing some spine infront of political or management pressures.

[riz]

A minute number or a suppressed minority CANNOT withstand the pressure of majority. there is a number of unions/associations operating in pia includes

1. Air league
2. People's unity.
3. Piace.
4. United.
5. Atap.
6. Ssa.
7. Palpa.
8. Seap.
9. Fena.
And last the retired employees also formed an association.

PIARE. They are negotiating for an unholy cause of increments in pension by using their connections.

[Adnan Anwar]

This is a joke.

Why sell 26% why not sell 100%.

Or why sell when you have made the damn airline profitable.

This done so people like Mian Mansha earn large profits, and only give a small amount as divident.

For example DG Khan cement just earned 12 rupees per share, and the payout to shareholders is 3 rupees per share, and he kept 9 for himself. He will do the same with PIA.

Minimum investment, maximum return.

Who is going to pay for 12000 employees golden handshake?? More debt on the airline.

PIA one and PIA two, what else do you expect from a Nawaz Sharif who appointed Ishaq Dar finance minister because his son is married to his daughter.

This plan is exactly like PTCL sale. I am hearing Mian Mansha will buy the 26% but slowly more shares will be offered and he will be alllowed to buy the shares until he has 100%.

[raihans]

my thought is that the deal is done under the table with Mansha group, what is being shown or presented is just formality

[Amaad Lone]

My dear HOP friends.

Which idiot will buy PIA in its current condition.

PIA needs heavy investment in the next three years.

A replacement for 737-340s is needed.

A replacement for 747-367s is needed.

A replacement for A310-308/324 is needed.

That is atleast 20-25 aircraft that are needed to get PIA going again.

Plus Who will pay the golden handshake to 12-13000 employees?

How do you make sure the GOOD EMPLOYEES remain and not the political trash?

If I was Mian Mansha I would be looking to buy Shaheen Air and expanding its network to UK and Europe and Far East and not deal with PIA debt and employee unions.

[raihans]

Amaad, don't think Mansha group will buy the whole PIA, they will be looking at PIA-1 only, all the debts, extra employees will be moved to PIA-2 which will be still with GOP.

[Amaad Lone]

PIA 1 or PIA 2 lets see when it happens.

But next summer PIA would have eaten up another 30 billion in public tax revenues that is 1.6 million rupees per employee.

Where is the sence in making a company debt free and then giving it away.

They should sell the hotels NOW, pay off 12000 employees and use the remaining money to finance some aircraft.

No need for PIA 1 or PIA 2.

[Squawk_1200]

Mian Mansha is a clever and a successful businessman he will never stick his leg in airline business in Pakistan , specially in a dead horse like PIA , whether failed or successful running airline. Mian Mansha is just dosti ka haq ada ker raha hey, which he will get the return in many other ways. In the comming days if you hear Mian Mansha or any other investor /buyer from Europe , Canada , USA or any Arab Shahzada is investing or buying PIA shares , they will be the front figures for name and signatures only , under the table it will be " their money".

[Abbas Ali]

According to latest reports:

* 26 percent PIA shares will be auctioned through stock market by the end of June 2014.

* The information given to International Monetary Fund (IMF) about the deadline for the sale of PIA shares has to be implemented.

* Leased aircraft will be arranged for PIA before the sale of airlines' shares.

* Golden handshake will be given to surplus workforce of the airline.

Abbas

[smhusain_1]

Getting a job out of Pakistan does not mean that those who haven't tried or unable to go for whatever the reason are poor pilot material. I know of a captain, Shakeel Khan, who refused a job in Saudia because he couldn't place his mother there for the length of the contract. Any flight operation is supported by the management infrastructure and short comings also relate to them. A pilot is just the visible portion.

R.F I find it extremely misleading and condescending on your part to dismiss the credentials of Pakistani pilots as unwanted commodities in the international market. Given that the green passport puts us at a disadvantage when vying for a slot against the glut of Europeans if you will , but I think at the end of the day it comes down to whose got more spunk! I ve yet to see a professionally bang up pilot from this part of the world have much difficulty in scoping out. The latest example being of the guys who were released from PIA with fake degrees , and were relocated in the Middle East in a matter of months. Some "veteran heros "of the cockpit fraternity seem to have sealed a time barred patent on professional excellence and continue to look down on the new generation like they re incapable of ever measuring up to make belief standards of yesteryear s! They were good pilots then and we continue to have them just like before. People choose to stay back , it's a voluntary action not be construed as under confidence or lack of professional worth. A dual nationality is all it takes to level the playing field , and even without it many have come through ! Those with undeserved wings are always known to be such and for some reason bred but I believe it was a trend started back in your day and if anything the rate of casualties has gone up showing that we re cleaning up well behind you guys !

[muneebhyder]

Any updates on this?
-Also will PK hq actually move to ISB or will this be blocked/delayed indefinitely? thoughts?

[Abbas Ali]

Privatization process of PIA delayed till financial year 2014-15.

privatisation of biggest state owned organizations such as Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) could not be done in the ongoing financial year but financial advisors would be appointed to proceed further in the upcoming financial year 2014-15.

Source: The News (November 11, 2013, edition)

Abbas

[Abbas Ali]

IMF wants fast-track privatisation of PIA

Mehtab Haider

Sunday, November 17, 2013

ISLAMABAD: The International Monetary Fund (IMF) is pressing Pakistan to kick start privatisation of PIA by appointing a financial adviser by March and hand over the airlines to a buyer by December next year. This was part of a condition accepted by Pakistan under the $6.67 billion Extended Fund Facility (EFF), it is learnt.

Under structural benchmark criteria agreed by the IMF and Pakistani side during recently concluded talks between two sides, the privatization of Pakistan International Airlines (PIA) would be accomplished till end December 2014.

The appointment of financial advisor for offloading 26 percent shares of PIA will be accomplished till end March 2014.

Earlier, both sides had agreed that the privatization of 26 percent shares of PIA would be done by June 2014 but now this deadline was extended up to Dec 2014. On privatization of Pakistan Steel Mills (PSM), the official sources said that the financial advisor for this transaction would be hired but claimed that there was no deadline envisaged for accomplishing its privatization. It would be responsibility of the financial advisor to set deadline for privatization of PSM, they added.

Source: The News

[Abbas Ali]

The International Monetary Fund (IMF) is pressing Pakistan to kick start privatisation of PIA by appointing a financial adviser by March and hand over the airlines to a buyer by December next year.

Chairman PIA/Secretary Aviation Division/Chairman Civil Aviation Authority (CAA) Board Muhammad Ali Gardezi in an interview on PTV News aired on November 18 said that in the near future advertisement will be given in newspapers for appointment of airline's financial adviser as part of its privatization process.

Abbas