Look who is opposing PIA privitisation. Greedy employee unions and PPP.
Once a pride of Pakistan, PIA is in a bad shape. The announcement of its privatisation has started a debate among its employees, leading to an open resistance (greed).
Passengers of PIA recall the time when PIA was a successful airline. Today, PIA is notorious for poor service, unnecessarily long delays and sudden flight cancellations.
It has an ageing fleet of some 32 planes, more than 16,000 EMPLOYEES (WHY?), a reputation of negligence and mismanagement and the burden of multiplying loans.
People associated with PIA blame inconsistent policies and political interventions at different levels for the gradual decline — from purchase of various items to awarding of different contracts.
PIA showed profit in 2003-2004 last, when Ahmad Saeed was the chairman.
The average age of the fleet is 22 years and many of the PIA planes are not fuel-efficient. Of the total expenditures incurred by PIA, 54% is spent on fuel whereas a standard airline consumes around 35% of the total budget on fuel. PIA officials attribute this high cost of fuel to old planes.
PIA’s senior officials point the finger at the previous PPP government for making political appointments. The last PPP government, they say, put extra burden on the airline by inducting around 4000 employees despite severe financial and operational constraints.
For earning profits, PIA needs at least 8 to 10 new narrow-bodied (medium range) planes that can improve business efficiency of the airline. It needs to get rid of employees it does not need, PIA if way too overstaffed. Lastly, it needs to be privitised without government interference.
Anyone opposing this is only concerned about his or her own pocket, and not the airline.
Once a pride of Pakistan, PIA is in a bad shape. The announcement of its privatisation has started a debate among its employees, leading to an open resistance (greed).
Passengers of PIA recall the time when PIA was a successful airline. Today, PIA is notorious for poor service, unnecessarily long delays and sudden flight cancellations.
It has an ageing fleet of some 32 planes, more than 16,000 EMPLOYEES (WHY?), a reputation of negligence and mismanagement and the burden of multiplying loans.
People associated with PIA blame inconsistent policies and political interventions at different levels for the gradual decline — from purchase of various items to awarding of different contracts.
PIA showed profit in 2003-2004 last, when Ahmad Saeed was the chairman.
The average age of the fleet is 22 years and many of the PIA planes are not fuel-efficient. Of the total expenditures incurred by PIA, 54% is spent on fuel whereas a standard airline consumes around 35% of the total budget on fuel. PIA officials attribute this high cost of fuel to old planes.
PIA’s senior officials point the finger at the previous PPP government for making political appointments. The last PPP government, they say, put extra burden on the airline by inducting around 4000 employees despite severe financial and operational constraints.
For earning profits, PIA needs at least 8 to 10 new narrow-bodied (medium range) planes that can improve business efficiency of the airline. It needs to get rid of employees it does not need, PIA if way too overstaffed. Lastly, it needs to be privitised without government interference.
Anyone opposing this is only concerned about his or her own pocket, and not the airline.
The
Privatisation Commission, chaired by Federal Minister of State for
Privatisation Mohammad Zubair, gave the go-ahead to the privatisation of
three state-owned entities, including the national flag carrier
Pakistan International Airlines (PIA) as well as Heavy Electrical
Complex (HEC) and the National Power Construction Company (NPCC)
The board resolved to divest a minimum 26% shares of PIA to a private investor and approved the initiation process for the selection of a financial adviser for the purpose, which will be chosen by March 2014. The board also resolved that “the employees’ interests shall be protected in the process.”
The board's decisions will now be placed before Parliament for final approval. The privatisation of the national flag carrier has been a contentious issue fiercely resisted by the PPP and MQM as well as workers unions.
The board resolved to divest a minimum 26% shares of PIA to a private investor and approved the initiation process for the selection of a financial adviser for the purpose, which will be chosen by March 2014. The board also resolved that “the employees’ interests shall be protected in the process.”
The board's decisions will now be placed before Parliament for final approval. The privatisation of the national flag carrier has been a contentious issue fiercely resisted by the PPP and MQM as well as workers unions.
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