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

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.