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

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Abbas Ali
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Re: PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

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Business | Mon May 23, 2016

Pakistan to start "soft-marketing" state airline sale in June

LONDON | BY KARIN STROHECKER


Pakistan will begin the marketing process next month to sell a 49 percent stake in Pakistan International Airlines and plans to list shares in several power utility firms this year, privatisation minister Mohammad Zubair said on Monday.

"We are going to start the soft marketing in June," Zubair told Reuters, in an interview on the sidelines of an investment conference organised by Renaissance Capital.

"We have to understand the market, and what the market is looking for," he added.

"We are looking for another investor, it could be an airline but doesn't have to be, but we are just looking for one."

Prime Minister Nawaz Sharif had made the privatisation of Pakistan International Airlines (PIA) a top goal when he came to power in 2013.

Parliament adopted a law in April to convert PIA into a limited company but it prevented the government from giving up management control.

Zubair said this clause would apply only for a two-year period, after which the government could sell the whole stake.

Source: Reuters
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Re: PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

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Pakistan will begin the marketing process next month to sell a 49 percent stake in Pakistan International Airlines and plans to list shares in several power utility firms this year, privatisation minister Mohammad Zubair said on Monday

.......

Zubair said this clause would apply only for a two-year period, after which the government could sell the whole stake.
So instead of 26% shares, GOP selling 49% shares in 1st phase and in 2nd stage; after 2 years, the remaining 51% shares could be sold i.e. PIA will be 100% privatized :-k
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Re: PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

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According to a newspaper report, Aviation Division has informed Cabinet Committee on Privatisation that enforcement of PIA bill has not been initiated so far. The conversion of Pakistan International Airlines Corporation (PIAC) into Pakistan International Airlines Corporation Limited (PIACL) under the bill will ensure better performance and enhance operational capacity of the airline.

The Cabinet Committee on Privatisation has directed Aviation Division to complete airline's corporatisation process within two weeks.

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

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PIA CEO Bernd Hildenbrand attended Cabinet Committee on Privatisation (CCoP) meeting in Islamabad that discussed sale of government shares in PIA.

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

Post by Abdulrafeysiddiqui »

Considering revival plan, Isn't it better that PIA becomes a member of an alliances, like skyteam or star alliance?
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Re: PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

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"We are in the process of separating PIA's core and non-core activities and will approve the transaction structure for offering a minority stake to a strategic partner and/or the general public by end-December 2016 and complete the bidding process by August 2017," the government of Pakistan has told the International Monetary Fund (IMF).
Source: http://nation.com.pk/business/14-Oct-20 ... ng-pia-psm
Pakistan Muslim League-Nawaz (PML-N) government is not going to privatise Pakistan International Airlines (PIA) but is seeking a potential private partner to share equally in its profit and loss. This was revealed at a meeting of National Assembly Standing Committee on Parliamentary Affairs held under the chairmanship of MNA Mian Abdul Mannan (PML-N). Muhammad Irfan Elahi, Federal Secretary Aviation Division & Director, Pakistan International Airlines Corporation Limited told the Committee that PIA's debt servicing includes Rs 2 to Rs 2.5 billion in interest payments (and principal as and when due) every month on its borrowings of Rs 100 billion.
Source: http://www.brecorder.com/market-data/st ... s/0/93427/

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

Post by Winds Aloft »

Is this " Potential Private Partner " different from "Strategic Investor " which they are looking for for the last three years ?
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Re: PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

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In my opinion Turkish Airlines can be a potential invester. They are having trouble back home with reduced demand of pax travelling to Turkey. They can make investment with 50-50 partnership with GOP, just like Etihad has in Jet Airways and Air Serbia.
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Re: PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

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PC considering PIA bifurcation, PAC told

ISLAMABAD:
Aviation Secretary Mohammad Irfan Ellahi on Tuesday told the Public Accounts Committee (PAC) that the Privatisation Commission (PC) was considering a proposal to divide Pakistan International Airlines Corporation (PIAC) into two companies — PIA-I and PIA-II — with the objective to hand over liabilities, including interest payment on Rs180 billion loans, to the government.

The PIA-II would be an operational side of the national flag carrier with a clean balance sheet, while outstanding liabilities of the PIA would be parked in PIA-I and the government would be responsible for their payment, he told the committee.

He said that the corporation has devised a strategy for core and non-core business. Some important departments of the organisation, like flight kitchen, medical, training centre and marketing, would be outsourced, while flight operation, cabin and cockpit crew, finance, information technology and administration departments would remain under the PIAC’s control, he said. Similarly, some departments of the engineering section would be under the PIAC’s control, while overhauling, maintenance and repairing would be privatised, the official said.

The PAC asked the government to park the Rs180bn legacy loan for at least five years so that the loss-making entity could be turned into a profitable organisation.

Source: DAWN
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Re: PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

Post by ammad »

Solid three years have been passed and so far nothing real happen for PIA-1 and for PIA2.

Also, 180 Billion is whole lot of a money for government to bail out PIA.
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Re: PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

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Maybe PIA Premier is embryonic PIA Two?

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

Post by Pakistan-1 »

PIA 2 should be renamed to Pakistan Airways as the PIA name has been damaged beyond repair
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Re: PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

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Pakistan-1 wrote:PIA 2 should be renamed to Pakistan Airways as the PIA name has been damaged beyond repair
I totally agree. but I want to suggest to go a little bit further. PIA should file for bankruptcy as its unions and all its army of employees will never allow privatization. After clearing all loans. GOP should start a new airline(Pakistan Airways) with 50% partnership with private sector. Something like JAL.
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Re: PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

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current government is gaining time and knows well privatization of PIA is not an easy task and there will be resistance from employees
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Re: PIA Revival Plan - 'PIA Two' to be Formed on Temporary Basis

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uzkt01 wrote:
Pakistan-1 wrote:PIA 2 should be renamed to Pakistan Airways as the PIA name has been damaged beyond repair
I totally agree. but I want to suggest to go a little bit further. PIA should file for bankruptcy as its unions and all its army of employees will never allow privatization. After clearing all loans. GOP should start a new airline(Pakistan Airways) with 50% partnership with private sector. Something like JAL.
Totally something like how Swiss replaced Swissair back in 2002
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