PIA’s Financial Woes Shock Senate Panel

[GEnx]

Hotels' sale proceeds embezzled/misused/mismanaged by government and/or airline and the money again going down the drain cannot be ruled out like it has been for more than a decade now. Selling of hotels will not be permanent solution of PIA problems.

Instead of selling the two hotels they should privatise the airline in transparent manner.

Abbas

100% true. The thing is that when there is mismanagement, corruption and politics in the organisation, airline will keep on making loses even after the hotels are sold.

[uzairali]

viewtopic.php?f=1&t=24217&hilit=dry+lea ... 30#p171544

Here is tender from july.

PIA went expensive wet lease instead of very cheap b772 as well as some b773.

wrong fleet planning Otherwise PIA would be having 4+ b777 in its fleet today instead of 1 a330.

[uzkt01]

Yes indeed it was bad decision, most probably politically motivated. I remember PMs daughter posting pics of SL A330 as brand Nawaz Sharif. Otherwise a proffessional like Hildenbernd wouldn't do such a mistake.

[Amaad Lone]

Sell the hotels pay off the debt then privatize the airline. Give the new owners a clean slate. Nobody will buy PIA in current form.

[faisal-777]

Sell the hotels pay off the debt then privatize the airline. Give the new owners a clean slate. Nobody will buy PIA in current form.

I am not sure but I read somewhere a prominent business personality once said "Gimme PIA, I will turn it into emirates"

[yyzflyer]

and then the govt officials have the galls to take B777 out of service for PM's trips to every country, which is basically cause of big financial loss.
Imagine schedule affected and loss of revenue passengers, stranding them to accomodate some govt officials.
Ofcourse you gonna have financial woes, its common sense.

No new widebodies, shrinking fleet and corruption/mismanagemnt and they expect airlin to profit?
A310's are pretty much gone, only few B777 remain which who knows, may not even renew lease and will be further reduced.
Only narrowbodies have been inducted, that won't save your longhaul routes.........

how long before longhaul routes start to get cancellations/affected ??

[yyzflyer]

Sell the hotels pay off the debt then privatize the airline. Give the new owners a clean slate. Nobody will buy PIA in current form.

there will be corruption in that too, they'll eat that money up in no time and those funds will disappear into banks in new york and paris. so it won't really benefit PK

[Abdulrafeysiddiqui]

Sell the hotels pay off the debt then privatize the airline. Give the new owners a clean slate. Nobody will buy PIA in current form.

there will be corruption in that too, they'll eat that money up in no time and those funds will disappear into banks in new york and paris. so it won't really benefit PK

Let us suppose that from both the hotels, PIA is getting $200 each i.e total of $400 per month. If both or anyone of those is sold, lets say for $500, just because of the political interference we won't even get the idea where those $500 have gone. So isn't it better that we are getting something($200 per month) instead of getting nothing?

[Amaad Lone]

PIA every year is paying much more in interest payments compared to what it is earning from the hotels.

Now is the time, the hotels sold, debts cleared and the airline sold to a private holder.

[raihans]

Sell the hotels pay off the debt then privatize the airline. Give the new owners a clean slate. Nobody will buy PIA in current form.

there will be corruption in that too, they'll eat that money up in no time and those funds will disappear into banks in new york and paris. so it won't really benefit PK

and who knows that these hotels will be sold for peanuts to some DEARONES, the way things are happening in Pakistan

[riz]

Every one who lives/ lived in Pak. Knows where the money will go.

Fire all the qouta system products, political chamchay, all union leaders.

[dreamliner99]

You would have to be stupid to sell the only assets that PIA own that make a profit to save a failing airline. Even if the debt is cleared the airline will still make losses.

[Amaad Lone]

with out injecting a large equity PIA can never make money.

now the question is who is going to inject the equity the government which lives on loans or does PIA sell something worth while.

Without selling the hotels PIA will not survive as viable airline.

Once debts are cleared PIA should be handed over to private management and government owned anymore.