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RAWALPINDI: PML-N Senator Mushahidullah Khan announced on Friday that the government had postponed the privatisation of the national flag carrier for six months and requested the protesting workers to end their strike.
Addressing a press conference at the Aviation Division here, he said neither the PIA was being privatised nor its employees being sacked or their facilities withdrawn.
The PML-N leader warned the protesting employees that the government would use its authority against all those elements who had locked the airline offices without any reason.
Govt urges employees to resume work
He said the government would not get blackmailed by any protest and it had made the decision “in the larger interest of workers and the country”.
He also requested the joint action committee of PIA employees to hold talks with the government to resolve the issue.
The senator said that due to ongoing closure of PIA offices by its employees, the government was suffering a huge loss.
He said Prime Minister Nawaz Sharif had said that neither the PIA was being privatised nor perks and privileges of its employees were being withdrawn or employees being sacked.
Mr Mushahidullah asked the joint action committee of PIA employees to withdraw its decision of the strike and resume flight operations, otherwise the government would use its authority and impose the Essential Services Act, if PIA employees did not call off their strike.
Meanwhile, a high-level meeting, presided over by Prime Minister Nawaz Sharif, reviewed the impact of PIA employees’ strike on Friday.
A spokesman for the PIA said it was agreed at the meeting that the government expected PIA union leaders to support the organisation’s management in reviving the national flag carrier so that the good work done over the last two and a half years was taken forward.
The meeting decided that no PIA employee would be laid off or lose financial perks and privileges and they would continue to enjoy job security.
It was further decided at the meeting that strategic partner would not be engaged in the next six months and PIA should work hard during this period to improve its performance.
The meeting observed that because of the strike the people were suffering and the organisation was also incurring losses of billions of rupees. This situation, the meeting noted, was bringing a bad name to the country and its reputation. This situation could not be tolerated, the participants noted.
The meeting pledged that it would not be blackmailed by PIA unions and associations and if the strike was not called off, the national flag carrier would be declared a part of essential services by the government.
Published in Dawn, January 30th, 2016
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Jan 30, 2016 06:33am
Another shameful surrender to the free loaders of PIA. Pakistani taxpayers are now paying for their free loading for another 6 months now!!!
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Jan 30, 2016 06:41am
Politicians don't have the guts to properly manage it - don't have the guts to sell it. Taxpayers are doomed. Also --- has anybody bothered to ask why anyone would want to buy a minority interest in a chronic loser where the majority shareholder won't allow layoffs?
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Jan 30, 2016 06:44am
The government should shut down the airlines altogether. Fire all employees. Sell the assets to private enterprise and assist them in a process of rehiring management personnel followed by operational staff over a period of say two to three years. Those who were fired will still be available for re-hire if worthy of being rehired since no other airlines would have offered them a job.
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Jan 30, 2016 06:45am
PIA must be privatized as no government can run its affairs successfully due to overburdened organization. A lot many people in PIA needs to be laid off, their perks and priviliges to be rationalized in order to make it vibrant and efficient airline. Otherwise, govt will continue paying billions for a useless entity. A lot many Pakistanis have stopped travelling on PIA. In near future, many international airlines will start operations in Pakistan and the rest of the customers of PIA will also be lost.
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Jan 30, 2016 06:56am
Pakistan needs someone like Noor Khan to run the PIA and make it profitable. Do not sell the assets. Oh wait a minutes. Forgot about the IMF loans. Sorry, Pakistanis. Sooner or later, it will go on the selling block.
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Jan 30, 2016 07:09am
Maybe it's good , the privatization I mean. But the issue is the credibility of the current rulers. The track record stinks from a mile away. Reeking of corruption
So naturally the people are a wary of any such move.
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Jan 30, 2016 07:24am
This is our national asset but must be protected at all cost. That does not mean we do not make an effort to improve it. But it can not be improved by politicians who are running their own airlines ( direct conflict of interest).
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Jan 30, 2016 07:32am
Mushahidullh first says that the airline is not going to be privatised and then he says the privitazation has been postponed for six months.He should come out clear and not confuse the people.The government also says that there will be no layoffs and perks and job security will continue, this will not be possible once a new partner joins in as a matter of fact workers will be laid off and new ones hired with lower salaraies and less perks, a chaos may crop up at the time of privitazation.The government seems bent on privitazition,the people also have a right to know as to who the real new partner will be.
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Jan 30, 2016 07:47am
Caved in meekly, yet again. Our history is replete with such episodes of surrender. So what's new?
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Jan 30, 2016 07:54am
They still need to eat up PIA.
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Jan 30, 2016 08:32am
Govt should be out of all major corporation if they wanted to thrive them. Is not government job to run a business. PIA should have been privatized long time ago... But longer they prolong this longer we all suffer
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Jan 30, 2016 09:00am
Condemnable, shameful decision by PMLN government. Its like giving more time to the theives to maximize their loot out of the almost dying entity. Indeed, democracy is the best revenge even today.
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Jan 30, 2016 09:04am
So I see tax-payers money being wasted for another 6 months at least!
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Jan 30, 2016 09:07am
Criticism on PIA is in full swing not just now but for a quite a years. However, we must acknowledge it was the same corporation which has been flying all over the world in full colors and helped to build other airlines of the region such as Emirates is one of them. Just telling it to make memories afresh that same was being done under government management. Now, suddenly what happened that everything is going wrong not just with PIA, think about Steel Mill etc; and if it has been any upside down with PTCL privatization as it sold to government owned company of UAE, Itesaalat. Further, are you satisfied with the performance, for example, of Wapda, Police, government officials. Have you not seen degradation in everything compared to a few decades ago. Were these entities not in so-called government control? The answer is that solution is not only lies in privatization (or more precisely to Sell out something) but to do review our diminishing capabilities.
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Jan 30, 2016 09:31am
public private partnership model is best. just give management job to private company and have share in profit .this will help and save national carrier from going into private hand
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Jan 30, 2016 09:42am
***New****
Bravo Mr. PM... you make us proud... privatization is not the solution... where Iran is planning to buy 118 planes why should we quit... PIA requires viable restructuring to make it a test case of success... Here are some recommendations for the government; … Reorganise and restructure with customer satisfaction in mind and everything else would fall into place… Hire experts on merit with both local and foreign experience without offering them outrages compensations… Re-organise work force on the basis of merit… Avoid borrowing, eliminate unnecessary expenses to reduce cost… Create innovative ways to increase revenue, eliminate redundancies, create strategic partnerships to increase bottom line… Re-brand, re-market and expand with new vigour and strength paving the way for PIA’s ultimate revival and lasting success…
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Jan 30, 2016 10:08am
You can't trust this government, they will continue privatization talk in secrect during this six month postponed annoucement. Instead of provitizing, government should re-organiz PIA, remove all ghost employees and all political appointees, they need to start this from top of management.
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Jan 30, 2016 10:14am
@The Trusth Seeker only foolish and mind less people will fly with PIA presence of these rude, dishonest and corrupt employees. govt. must deal with these smugglers with iron hands.
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Jan 30, 2016 10:17am
@haider. these r only speculations but one thing is confirmed that PIA suffered huge losses due to these corrupt employees. they have stolen even nut bolts of planes.
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Jan 30, 2016 10:21am
@aamir this is the past history but today PIA is one of the worst inefficient air line. shortly PIA is going to crumble on the ground due to consistent corruption, inefficiency and rude behaviour of corrupt employees. these parasites have reduced PIA to ashes and stolen even nut bolt of planes.
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Jan 30, 2016 11:04am
The minister will himself be against the privatization, consequence thereof will be return of his two brothers from lucrative overseas assignment, posted after forming of PML(N) govt
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Jan 30, 2016 11:41am
@rana
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Jan 30, 2016 11:54am
I think someone in the government of within PIA is waiting for iPhone 8, so they can have PIA crew smuggle hundreds of these over the next six months~~??
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Jan 30, 2016 12:03pm
@rana Your point is same perception I wanted to address at first place. All criticism is based on what you see. Rather, underneath situation actually needs to be answered that linked to our overall ability which is crumbling fast. Take the example that our top minds such as doctors and engineers who are first to get immigration of foreign countries; similarly, neither top minds are joining joining civil services.
Thought your point about most of PIA staff is not very wrong as I am also from PIA and living abroad and working to get immigration. However, I would say the truth that to sell a national asset with this mentality that to avoid hardship and difficult decision, is equal to run away and not to face the challenges.
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Jan 30, 2016 12:13pm
Delaying the inevitable......get a foreign tough CEO, who won't take political interference...then see PIA fly high.......
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Jan 30, 2016 12:16pm
So, I am not travelling by PIA for ark east another six months. This is height of corruption!!
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Jan 30, 2016 12:45pm
After six months If there is anything left of PIA, at the rate its bleeding.. I expect the leased planes will be seized by the foreign companies, and the negative balance sheet will make it as unattractive to a buyer as a sinking ship!!
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Jan 30, 2016 12:49pm
The task of rehabilitation of PIA should be handled piecemeal. First the services of the airline should be brought to order and then if need be, privatize.
The problem is the rightsizing and the starting point.
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Jan 30, 2016 12:52pm
It is a carrot and stick approach. Not privatising, none will be lay-off, perks not to be affected and nothing to worry about. But the Essential Services Act can also be used if ... sidhi ungli se gheee nahin nikla to ungli terhi karni paregi. How come a Senator is representing the Government ? We have a privatizing Committee and it's chairman and the fed-up Finance Minister.
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Jan 30, 2016 01:03pm
PIA, PSM, Wapda...all are White Elephants, must be Privatized sooner than later.
i: Poorest performance
ii: Severe mismanagement
iii: Burden on National kitty
iv: Surplus employees (mostly on political ground).
And above all...their output is a huge question mark....???????
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Jan 30, 2016 01:04pm
PIA, PSM, Wapda...all are White Elephants, must be Privatized sooner than later.
i: Poorest performance
ii: Severe mismanagement
iii: Burden on National kitty
iv: Surplus employees (mostly on political ground).
And above all...their output is a huge question mark....???????
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Jan 30, 2016 01:04pm
PIA, PSM, Wapda...all are White Elephants, must be Privatized sooner than later.
i: Poorest performance
ii: Severe mismanagement
iii: Burden on National kitty
iv: Surplus employees (mostly on political ground).
And above all...their output is a huge question mark....???????
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Jan 30, 2016 01:18pm
Why and how government has kneeled down before union? Now the precedent is set that union should issue strike notice, inflict heavy losses running into 7 digits. Well done PML (N) this is what eventually was expected of you. Keep it up. Iqbal Hadi Zaidi
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Jan 30, 2016 01:37pm
When all private airlines in Pakistan can make profits even at cheaper fares, why can't PIA? There is definitely something terribly wrong and it cannot be something secret. I for a layman can easily pick up a few points:
1) National airline is being used on non-commercial basis by the Government, running it almost half empty because its advance bookings depend upon the last minute sales due to seat reserved for Govt. and the political privileges till the last few minutes of flight departure when unutilised of such seats are released for the chance passengers.
2) PIA has a "Plane to Staff" ratio that is highest in the world with 780 staff for each of its 42 planes. In comparison, the normal ratio in the world is between 120 and 130.
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Jan 30, 2016 02:24pm
@Ahmed USA All i see in your comment are jargon "restructuring", "reorganize" "customer satisfaction" "Strategic partnerships" "Elimination of redundancies" "Re-branding" "expansion". Care to explain HOW to do it? There is no comparison with Iran here. Iran airways in its present state is not heavily overstaffed & not a loss making body. PIA on the other hand has not even broke even during last 15 years. Even without privatization it needs to lay off thousands of employees which it cannot because of political exigencies as long as it remains government owned. If Pakistan was a prominent travel/transit destination like Dubai, Bangkok, Istanbul or even Nairobi it would have made sense for the government to 'own' an airline but unfortunately its not. No "restructuring", "reorganize" "customer satisfaction" "Cost reduction" "Strategic partnerships" "Re-branding" "expansion" is possible in the PIA unless it is fully or partially privatized and that's the bottom line.
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Jan 30, 2016 02:49pm
Privitization was not being done in good spirits. It was another MCB in the making. This privatization bill should be dropped. Just postponing it is not a solution
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Jan 30, 2016 02:53pm
@Ahmed USA
All great ideas but not the government's job to do these things. People talk about PIA as being some strategic asset. The reality is that it is not. In times of national emergency having a 51% stake would ensure that the government can leverage its assets . beyond that the mgmt has to be turned over to private companies to run the airline on merit and try all of the things you recommend and more. The days of subsidies by the government for political expediency need to be left behind. These are killing the Pakistani economy and the less than 3% of the population that actually pays taxes in this selfish nation!!!
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Jan 30, 2016 02:59pm
PIA is in red because:
3) The high-headed management is so ruthless that, its executives draws salaries and perks more than the world's largest commercial establishments, despite running in colossal loss.
4) What is the great gain in painting new designed colors on planes and giving new designed uniforms to air hostesses, on appointment of every chief executive?
sanity is the greatest exception in everything named PIA!
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Jan 30, 2016 03:29pm
PIA was once a mentor of Emirate airlines,now let Emirate airline be mentor to PIA for 6 months - Does this makes sense?
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Jan 30, 2016 04:13pm
give every citizen an allowance by printing money as these lazy layabouts employees of this airline are given,if you can not then get rid of this failed
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Jan 30, 2016 07:37pm
What a gutless government! This just postpones the problem for six months. It is not going to go away..
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Jan 31, 2016 01:35am
The only solution is to end PIA operations. The govt will save billions that can be put to better use. There are enough private carriers that can pick up the overflow of travelers.
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Jan 31, 2016 07:20am
PIA is a national flagship carrier. It's identity of the nation. It must be preserved at any cost, even if the country has to bare loss in its operation. NS Government is doing a great job. I have full faith in this government to resolve this crisis.
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Jan 31, 2016 08:20am
Not privatization but customer-oriented restructuring might help.
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Feb 01, 2016 04:39pm
Citizens of Pakistan please be very careful as the decisions of today will haunt us in the future and it will be the handful tax payers who are directly taxed and all citizens who are indirectly taxed will bear the cost of a very bad decision of privatizing the national flag carer. The Airline is full of extremely competent professionals who are sidelined by the current leadership with no aviation background. PIA is the only airline having a board of directors having no Aviation Experience.
The airline can be restructured to be more efficient without laying off people. The opportunities are ample. First and foremost bring the employees on board and build the confidence and trust of the employees.
Do not sell out lucrative routes at a cheap price. Make sensible agreements.
Leverage Assets of PIA Holdings.
Induce process excellence and enhance employee engagement.
Stop using the Airline for free travel of government officials around the globe.
Stop operations on unprofitable routs.
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