‘PIA losses reach Rs 42.6bn’
*Saturday, June 07, 2008
By Zulfiqar Ghuman*
ISLAMABAD: **Pakistan International Airlines accumulated losses have reached a hefty Rs 42.6 billion, Defence Minister Ahmed Mukhtar told the National Assembly on Friday.
He admitted that the national flag carrier has been a constant drain on the already cash-starved national exchequer for the last few years,** but hoped that reforms being introduced by the new management reduce the losses by year 2010.
The Defence minister was responding to questions from members of the National Assembly (MNAs) over a call-attention notice regarding PIA’s accumulated losses. Besides the unprecedented increase in oil prices, Mukhtar also blamed the previous management led by Tariq Kirmani for PIAs financial problems.
He said the government was not considering the privatisation of the PIA. “Yes, the PIA is over-staffed. We are trying to cut the expenses. We are also considering restructuring the senior staff, especially that deputed at foreign stations, to reduce the losses,” he said. Another notice regarding the shortage of electricity was deferred due to the absence of the minister concerned, Raja Pervez Ashraf. He is on a visit to Saudi Arabia with the prime minister. …
What’s the point of having the National Carrier nationalised when all it does is suck billions of rupees from the exchequer every year? Air Blue is doing well, making profits, creating thousands of jobs and helping the exchequer with taxes.
All these billions could be spent on education and health.
Re: Musharraf privatised Pakistan Steel Mills, why shouldn't PIA be privatised as wel
Because people fear Privatizing the national airline would compromise the identity symbol. Maybe 49% of it can be up for grabs for willing and worthy investors, this way by withholding 51% shares, Pakistan (state) can still retain it to be a national airline, rather then serve as a feeder to other networks, if/when totally privatized. (Possible investors maybe Middle Eastern)
And remember Steel Mill issue has become a scandal because according to insiders, the industry was sold for peanuts.
The airline; however, does indeed lose a lot of money. I think they need to cut down on staffing. Improvise and push the entire fleet to full use. Totally abolish the VVIP treatment of the federal and state employees and start charging them (even if partially). And adopt a 'every seat for sale' policy unlike the 'following seats reserved for MNA/MPA and his/her family' which badly hurts the airline and its reputation as a national carrier.
And remember Steel Mill issue has become a scandal because according to insiders, the industry was sold for peanuts.
Not according to my source. He is one of the operational VP's there, and has mentioned that the steel mill is now able to make better investments, talk to foreign governments and create better grade steel because the red tape simply doesn't exist. I've read reports of it being a scandal, but its certainly not true. Also according to my buddy, the place is functioning much better like a well oiled machine, as it now has the power to reach out to global associations related to its fields, which can help with standards etc.
... And remember Steel Mill issue has become a scandal because according to insiders, the industry was sold for peanuts. ...
France's steel industry was sold to South Korea for only 1 franc! Would you expect to sell a tent or a 19th century car for a million dollars (except for when it's an antique and has no practicle use)?
Re: Musharraf privatised Pakistan Steel Mills, why shouldn't PIA be privatised as wel
well many loss making units around the world are sold fro free ie 1 unit of currency. most of them have huge running cost even they are not producing something. to sell it for free mean they ask investors to start investing and create jobs for local people in a way saving their jobs and load off the govt.
but but, hey Pak steal was making profit, it was nt in loss and even just the land cost 10 times more than the amount it was sold. bidders were sham and knew the figures other were qouting. many flaws and there must be someone who was trying to get the deal done.