Tag: international airlines

  • PIA set for transformation: Federal cabinet approves privatisation, restructuring

    PIA set for transformation: Federal cabinet approves privatisation, restructuring

    In a significant development, the caretaker federal cabinet has granted approval for the restructuring of Pakistan International Airlines (PIA) and the privatisation of First Women Bank Limited.

    This decision, based on recommendations put forth by the Privatisation Division, aims to address the financial challenges faced by PIA in recent years.

    The pivotal meeting of the federal cabinet, presided over by Caretaker Prime Minister Anwaar ul Haq Kakar, saw the submission of restructuring recommendations by the Privatisation Division.

    It was highlighted during the session that PIA has been grappling with financial losses over an extended period.

    Previous cabinet meetings had already endorsed the appointment of a financial advisor, whose role is integral to the financial and administrative restructuring of PIA.

    The cabinet was briefed on the progress, indicating that the financial advisor has devised a comprehensive financial restructuring plan aligned with international norms.

    Under this plan, PIA is set to undergo a division into two distinct entities: Top-Co and Hold-Co. The core operations of PIA, including engineering, ground handling, cargo, flight kitchen, and training, will be consolidated under Top-Co.

    On the other hand, entities such as Precision Engineering Complex, PIA Investment Limited, properties, and other subsidiaries will find their place within Hold-Co.

    This strategic restructuring aims not only to address the financial challenges faced by PIA but also to attract potential investors.

    The cabinet has been briefed on the measures undertaken to enhance the attractiveness of PIA for investment, laying the groundwork for a positive trajectory in the airline’s future.

  • PIA’s controversial decision: UK staff appointments on high salaries amid financial crisis

    PIA’s controversial decision: UK staff appointments on high salaries amid financial crisis

    In a recent development, Pakistan International Airlines (PIA) has come under scrutiny for making new staff appointments in the United Kingdom (UK) despite grappling with a severe financial crisis and a three-year ban on direct flights to the United Kingdom (UK).

    According to ARY News, the national flag carrier, PIA, has faced mounting challenges in recent years, with the ban on direct flights to the UK being a significant blow to its operations. Despite these challenges, the airline has proceeded to appoint officers and staff members with substantial salaries.

    Notably, the PIA country manager has been appointed with an annual salary of £70,000, while the passenger sales manager and finance manager will each receive £55,000 annually. Furthermore, a manager has been assigned to the Manchester station with a yearly compensation package of £55,000, coupled with other perks.

    Responding to these appointments and the ongoing financial crisis, a PIA spokesperson explained that the airline has continued its flight operations in the UK by collaborating through code-sharing agreements with Turkish Airlines, which generates an annual revenue of £14 million. The spokesperson emphasised that a mere 1.8% of these earnings are allocated to PIA staff in the UK.

    The PIA spokesperson also expressed optimism about the resumption of direct flight operations between Pakistan and the UK, citing this as a reason for the recent appointments of the country manager and sales manager.

    However, the controversy surrounding PIA deepened when the Federal Board of Revenue (FBR) froze the airline’s bank accounts due to non-payment of more than Rs8 billion in taxes. A total of 26 bank accounts belonging to the national carrier have been locked by the FBR.

    The FBR revealed that PIA had pledged to settle Rs2 billion in dues under Federal Excise Duty in August, but it failed to honour this commitment, leading to the account freeze.

    Despite this financial setback, the PIA spokesperson reassured the public that the closure of bank accounts would not disrupt Pakistan International Airlines’ flight operations. The airline remains committed to maintaining its services in the UK while navigating this challenging period.

    As the situation unfolds, stakeholders and industry observers continue to monitor PIA’s financial stability and the progress towards the resumption of direct flights between Pakistan and the UK.

  • Dubai airport smashes pre-pandemic records with 16,713 flights in March

    Dubai airport smashes pre-pandemic records with 16,713 flights in March

    The Dubai International Airport has achieved a remarkable milestone by exceeding pre-pandemic levels in March, recording an impressive 16,713 flights. This marks a 23.7 per cent growth compared to March 2022, with an additional 248 flights added as compared to March 2019. The airport has seen a steady increase in flight movements, with a total of 48,418 flights in the first quarter of 2023.

    In a broader context, the main local airports in the UAE, including Dubai, Abu Dhabi, and Sharjah, have recorded an overall increase of 29.36 per cent in the first quarter of this year compared to the same period last year.

    The country’s national carriers, such as Emirates, Etihad Airways, Fly Dubai, Air Arabia, and Air Arabia Abu Dhabi, have accounted for approximately 74 per cent of the total number of flights through the airports in the region.

    This remarkable increase in flights can be attributed to the expansion of national carriers and the growing attraction of international airlines to operate from the UAE’s airports. The impressive surge in air traffic is a testament to the UAE’s status as a global aviation hub, continuing to attract a diverse range of airlines and passengers from around the world.

  • All airlines will be allowed to fly in Saudi Arabia’s airspace including from Israel

    All airlines will be allowed to fly in Saudi Arabia’s airspace including from Israel

    Saudi Arabia announced that it would open its airspace to all air carriers, allowing for more overflights to and from Israel.

    US President Joe Biden, who is scheduled to visit the kingdom today, applauded the decision.

    According to the Saudi General Authority of Civil Aviation (GACA), all airlines that fulfill the country’s overflight requirements are now allowed to use the country’s airspace, in accordance with international agreements that forbid discrimination between civil aircraft.

    As per a statement from GACA, the choice will complement the efforts aimed at consolidating the kingdom’s position as a global hub connecting three continents and to enhance international air connectivity. Some flights to and from Israel had longer flight times and used more fuel as a result of flying over Saudi Arabia.

    US President Joe Biden praised the choice, according to Jake Sullivan, the White House’s national security adviser. The security and prosperity of the United States and the American people, as well as the security and prosperity of Israel, are dependent on a more integrated, stable, and secure Middle East region, according to Sullivan.

    A source had earlier told Reuters that Saudi Arabia would soon allow Israeli airlines unrestricted overflight access and permit direct charter flights from Israel for Muslims taking part in the yearly hajj pilgrimage in Makkah.

    Saudi Arabia rejects Israel’s legitimacy and has made no mention of potential bilateral developments during Biden’s visit. Israel has likewise avoided making these connections.

    KSA had agreed in 2020 to permit flights between Israel and the United Arab Emirates to pass through its territory, despite the lack of official relations.