PIAC converted into company

Published December 7, 2015
KARACHI: Members of Pakistan International Airlines Employees Union demonstrating against privatisation of the airlines at the PIA headquarters on Sunday.—PPI
KARACHI: Members of Pakistan International Airlines Employees Union demonstrating against privatisation of the airlines at the PIA headquarters on Sunday.—PPI

KARACHI: Paving the way for its privatisation, the Pakistan International Airlines Corporation has been converted into a company.

Addressing a press conference here on Sunday, PIA Chairman Nasser N. S. Jaffer said the PIAC had been converted into a company, but for its employees the employment conditions would remain unchanged.

He said all stakeholders, employees of every grade and category stood transferred to the company, PIACL, with the same designation and on the same terms and conditions as they held in PIAC.

Also read: 35 flights cancelled; PIA management, pilots blame each other for crisis

Mr Jaffer said the PIAC had been converted through Ordinance No XVII dated Dec 4 from a statutory corporation into a company governed by the Companies Ordinance, 1984. The new entity is called Pakistan International Airlines Corporation Limited (PIACL).

He said through the ordinance, the PIACL had succeeded to all the assets, liabilities, duties and obligations of PIAC.

Similarly, the PIACL is now entitled to the benefit of all notifications, licences, permissions, sanctions, authorisations, concessions, decrees, international air service authorisations, agreements, orders and benefits issued or granted to PIAC.

PIA chairman Nasser Jaffer addressing a press conference on Sunday.—PPI
PIA chairman Nasser Jaffer addressing a press conference on Sunday.—PPI

He said all lenders (foreign and local, fleet and non fleet) and other creditors of PIAC shall continue to enjoy from PIACL the same contractual benefits and protections that they earlier enjoyed.

All guarantees given by the federal government to secure PIAC’s obligations will now continue so as to secure the obligations of PIACL.

He said the shareholders of PIACL shall own and hold the same number of shares with the same privileges as they owned and held in PIAC immediately prior to the conversion.

“All proceedings of every description and nature whatsoever by or against or relating to PIAC pending on the date of conversion, in any court, tribunal, or other authority shall be continued, defended, prosecuted and enforced by or against or relating to PIACL in the same manner and to the same extent as they would have been continued, defended, prosecuted and enforced by or against or relating to PIAC, and the same shall not abate, be discontinued, prejudiced or otherwise affected by the conversion.”

The press conference was delayed by around an hour after a large number of employees gathered at the PIA head office and held a demonstration against the government’s plan to privatise the airline.

Secretary General of the People’s Unity of PIA Employees Mohammad Ashraf criticised the move and termed it the government’s first step towards privatisation of the airline.

He said the workers would not allow the government or the PIA management’s conspiracy to succeed and would soon launch a joint struggle along with various labour unions operating in the airlines against it.

Published in Dawn, December 7th, 2015

Opinion

Editorial

Security policy unveiled
Updated 17 Jan, 2022

Security policy unveiled

PAKISTAN’S freshly unveiled National Security Policy has broadened the traditional concept and included economic...
Bold decisions
Updated 17 Jan, 2022

Bold decisions

IT is a double blow within a matter of days. The Islamabad High Court’s order last week to demolish a navy golf...
17 Jan, 2022

Rohingya camp blaze

A HUGE blaze in a refugee camp housing members of the Rohingya community in Bangladesh last week has left up to ...
16 Jan, 2022

Omicron threat

AS Pakistan grapples with the fifth coronavirus wave fuelled by the Omicron variant, the state must take timely...
Updated 16 Jan, 2022

Grim picture

There is much the govt can do to create an environment free of repression and coercion so that democracy is strengthened.
16 Jan, 2022

Larkana jail unrest

THAT Larkana Central Prison authorities had to resort to the excuse of “cleaning the jail” to shift 13 dangerous...