KARACHI, July 19: Chairman Pakistan International Airlines (PIA) Zaffar A. Khan has said that even though the Council of Common Interests (CCI) has approved the national flag carrier’s privatisation, he does not see an immediate implementation in this regard.

“PIA is on the approved list of the CCI for privatisation but I do not heard of any thing from the government about its sell-off,” he told his first press conference held here at the PIA headquarters on Thursday, after assuming charge as chairman over three months back.

Deputy Managing Director Omar Ghafoor and Chief Financial Officer Abul Aleem were also present.

The PIA chief was of the view that the government would not fetch a decent offer for the national carrier in case it was disposed of without undertaking its financial restructuring. “We have no immediate plans to privatise the PIA,” he added.

Mr Khan briefed the journalists about the present situation of the PIA, measures taken in the aftermath of European Union (EU) restriction on 20 aircraft, future plan to minimise losses and bring down the average age of its fleet and replacement plan with fuel efficient ones.

He also spoke on measures being taken by the airline for cost control, route rationalisation and maximum revenue. However, he observed that there was still more work to be done to improve effectiveness of the organisation.

Replying to a question, he said that the government was not given any subsidy to the PIA. “PIA could not bear its own expenses and we have to take loan from banks for which the government provides guarantee and also pays interest on some loans but in return it increases its shareholding in the corporation,” he maintained.

The PIA chairman said that the board of directors had approved a plan to replace B-737 with brand new aircraft by 2009.

He said that presently the PIA was not giving any discount to any individual as it resulted in erosion of revenue. However, he conceded that there was still a 50 per cent discount on airfare to armed forces but explained that the forces reimburse the difference amount through their own budget.

He maintained that safety and reliability would remain on the priority of the management. “PIA needs support of all its stakeholders. Turning around the PIA maybe huge but is doable,” he added.

He said that there were 18,200 employees currently working in the airline.