Tag: Pakistan International Airlines

  • Pakistan to retain stake in PIA amid privatisation efforts

    Pakistan to retain stake in PIA amid privatisation efforts

    Pakistan intends to retain a stake in the state-owned Pakistan International Airlines (PIA) to capitalise on its potential value increase following the airline’s sale, according to a report by Bloomberg.

    Usman Bajwa, Secretary at the Privatisation Commission, announced during a news briefing that the nation aims to finalise the bidding process within the next ten days. The privatisation agency plans to offer a minimum of 51 per cent of PIA’s shares to six pre-selected groups.

    PIA has struggled financially, failing to generate a profit for nearly two decades. This sale marks a significant step in the government’s broader strategy to implement economic reforms, which are part of the conditions set by the International Monetary Fund (IMF) for a bailout. Previous attempts to privatise the airline have been unsuccessful.

    In addition to PIA, Pakistan plans to divest from ten other state-owned entities, including power distribution companies, within the next year, as per the privatisation ministry.

    The government is also soliciting initial bids for the Roosevelt Hotel in New York, considering options such as an outright sale, joint venture, or long-term lease.

    Last month, Pakistan shortlisted six groups to bid for PIA, featuring prominent figures and conglomerates. These include tycoon Arif Habib and a consortium led by the Yunus Brothers Group. Pak Ethanol Pvt.’s consortium comprises Switzerland’s Swiss Aviation Group AG, Austria’s Airport Competence GmbH, and Australia’s Pearl Asset Management.

    This privatisation drive reflects Pakistan’s commitment to economic reform and stabilisation, aiming to attract investment and improve the financial health of its state-owned enterprises.

  • PIA to resume direct flights to Paris in June

    PIA to resume direct flights to Paris in June

    Pakistan International Airlines (PIA) is set to resume its flight operations to Paris in June, marking a significant step forward for the national carrier.

    In an address to a delegation from the Council of Economic and Energy Journalists in Islamabad, PIA Chairman Abdullah Hafiz unveiled the anticipated receipt of safety approval from the International Aviation Safety Assessment (IASA) in the imminent future.

    “With the imminent clearance from IASA, we are poised to launch flights to Paris by June, followed by the reinstatement of direct flights from Pakistan to Britain’s Heathrow Airport on August 14,” stated Hafiz with assurance.

    In anticipation of these pivotal routes, PIA has intensified its efforts in the maintenance and overhaul of its Boeing 777 aircraft fleet.

    Presently, seven Boeing 777 aircraft are operational, with an additional two expected to join the fleet within the next two months.

    This expansion will equip PIA with a total of nine Boeing 777 planes, facilitating efficient flight operations to both Europe and Britain.

    Highlighting Pakistan’s global aviation connectivity, Chairman Hafiz underscored that the country boasts air service agreements with 97 nations worldwide.

    The European Union Aviation Safety Agency (EASA) had imposed a flight ban on PIA following a tragic plane crash in Karachi in May 2020, which claimed 97 lives.

    Subsequent investigations uncovered discrepancies in the licensing procedures for commercial pilots.

    It is noteworthy that in November 2023, a delegation from EASA conducted a comprehensive evaluation of Pakistan’s Civil Aviation Authority (CAA) and PIA, assessing various aspects such as licensing, flight safety, flight standards, and airworthiness.

  • PIA air hostess slips away in Canada leaving ‘Thank you’ note behind

    PIA air hostess slips away in Canada leaving ‘Thank you’ note behind

    Another air hostess of Pakistan International Airlines (PIA) allegedly went missing while on duty in Canada.

    The incident came to light when Maryam Raza, assigned to flight PK 782 from Pakistan to Toronto, failed to report for duty on the return flight, PK 784 from Toronto to Karachi.

    Upon investigation, a note expressing gratitude to PIA was discovered alongside her uniform hanging in her room. “Thank you, PIA”, she wrote, reports Samaa News.

    This marks the third reported case this year of PIA flight attendants allegedly ‘slipping’ while on duty, with two of them being women.

    Despite measures such as collecting passports of flight attendants assigned to Toronto flights to prevent such incidents, the effectiveness of these policies has come under scrutiny.

    Experts cite low pay and a lack of job security within the national airline as the primary reasons behind these alleged instances of slippage but above all it maligns the image of the country on an international level.

    Read more here: Two PIA flight attendants go missing in Canada

  • Pakistan International Airlines announces special discount for students

    Pakistan International Airlines announces special discount for students

    In an effort to promote goodwill and support the academic pursuits of students, Pakistan International Airlines (PIA) has introduced an enticing offer in celebration of International Students Day. 

    The national flag carrier is now offering an exclusive 20 per cent discount, along with an impressive 80 kg luggage allowance, for students traveling on its flights to China. 

    This special promotion is part of PIA’s ongoing initiatives to attract passengers and rejuvenate its operations following significant financial challenges caused by fuel shortages.  

    It is noteworthy that the airline resumed its weekly flights to China in August, re-establishing the Islamabad-Beijing-Islamabad route. 

    Students, being a crucial demographic for air travel, can now enjoy substantial cost savings as they embark on their educational journeys or return home for holidays. 

    This offer is particularly advantageous for those traveling the Islamabad-Beijing route, with the weekly flight taking place every Sunday.  

    PIA is also considering extending students’ baggage allowance when traveling between Pakistan and China, providing an additional benefit to those taking advantage of this limited-time offer. 

    This announcement follows PIA’s recent initiatives to attract passengers, such as a 15 per cent discount on tickets for flights from Toronto to Pakistan.  

    Additionally, the airline recently reduced ticket prices for Umrah by up to Rs6,000, showcasing a concerted effort to meet diverse passenger needs and preferences. 

  • PIA struggles to stay afloat as fuel shortage forces cancellation of 349 flights  

    PIA struggles to stay afloat as fuel shortage forces cancellation of 349 flights  

    Over the past two weeks, Pakistan International Airlines (PIA) has been compelled to cancel 349 flights due to a severe fuel shortage, underscoring the challenges faced by the financially struggling national carrier.

    According to a spokesperson, these flight cancellations, which began on October 14, have affected both domestic and international routes, causing significant inconvenience to passengers. 

    PIA has issued a statement confirming that daily flight rescheduling is ongoing, but without specifying the expected duration of this crisis. Flight schedules are being adjusted based on fuel availability, as mentioned in the statement. 

    This situation has arisen from an ongoing financial dispute between PIA and the Pakistan State Oil Company (PSO). PIA alleges that PSO has suspended its credit line for fuel and is now requiring daily advance payments before supplying the necessary fuel. 

    PIA has emphasised its efforts to manage its funds and has indicated that the return to regular flight schedules depends on the availability of financial resources. 

    To keep affected travellers informed, PIA has outlined its priority destinations once flight operations resume. Canada, Turkey, China, Malaysia, and Saudi Arabia are expected to be among the first countries to be reconnected. 

    However, PIA’s flights to Europe and the UK have remained suspended since 2020 following the revocation of the national carrier’s authorization by the European Union’s Aviation Safety Agency due to the pilot licence scandal. 

  • PIA receives assurances of govt support during privatisation 

    PIA receives assurances of govt support during privatisation 

    Following a dire fuel crisis that significantly impacted Pakistan International Airlines (PIA) flight operations, the interim Prime Minister, Anwaar-ul-Haq Kakar, took decisive action on Monday.  

    He instructed the relevant authorities to expedite the privatisation process of the nation’s flag carrier. 

    Over recent weeks, PIA’s flight schedule has faced severe disruption, with numerous cancellations attributed to fuel shortages, exacerbated by the airline’s precarious financial situation.  

    Notably, on the preceding day, Pakistan State Oil (PSO) curtailed its fuel supply to PIA, resulting in the cancellation of 26 flights originating from various cities, including Karachi, Lahore, Islamabad, Quetta, Bahawalpur, Multan, Gwadar, and others. 

    Chairing a comprehensive review meeting concerning PIA’s financial challenges, Prime Minister Kakar highlighted the urgency of finalising the privatisation process within the stipulated timeframe. He further insisted on the submission of regular compliance reports on this matter. 

    The Prime Minister assured that the government remains committed to supporting PIA until the privatisation process is successfully completed. He said that state-owned enterprises (SOEs) facing financial losses will be privatised to safeguard the national treasury. 

    During this meeting, the Prime Minister received a detailed briefing on PIA’s current financial status. 

    In August 2023, the Cabinet Committee on Privatisation (CCoP) approved the inclusion of PIA in the active list of entities slated for privatisation following parliamentary amendments.  

    Additionally, the CCoP consented to engage a financial advisor for the transaction concerning PIA’s Roosevelt Hotel in New York. 

    According to credible sources, a significant transformation occurred when PIA transitioned from a corporation to a public limited company registered under the Companies Ordinance, 1984.  

    This transition commenced in 2016 through a joint parliamentary session that resulted in the enactment of the PIAC (Conversion) Act, 2016.  

    This legislation gave rise to Pakistan International Airlines Corporation Limited (PIACL), a public limited company.  

    Notably, a substantial amendment was introduced, known as the ‘Explanation’ in Sub-section 4 of Section 4, which restricted the federal government from relinquishing management control in the airline business of PIACL while maintaining a minimum ownership stake of 51% in the entity. 

  • PIA’s Boeing 777 planes encounter more technical issues due to lack of maintenance 

    PIA’s Boeing 777 planes encounter more technical issues due to lack of maintenance 

    Due to a serious lack of maintenance and repair work, numerous Boeing 777 aircraft operated by Pakistan International Airlines (PIA), the country’s national flag carrier, have experienced technical problems during international flights, according to reliable sources. 

    These technical issues within PIA’s aircraft have been steadily increasing due to the neglect of essential maintenance and repair tasks by the airline’s engineering department, as disclosed by insiders interviewed by ARY News. This unfortunate trend not only puts the safety of PIA flights at risk but also causes significant inconveniences for passengers and financial difficulties for the airline. 

    Sources have revealed that several Boeing 777 aircraft faced technical problems during flights to Saudi Arabia, resulting in substantial expenses for their repair and upkeep. In a recent incident, during the boarding process for Jeddah-Lahore flight PK-760, the auxiliary power unit (APU) exhaust malfunctioned, requiring the pilot to activate an emergency brake and initiate a fire control procedure. 

    The consequences of this incident were significant, leading to a delay of over a day for the affected flight as the aircraft had to be grounded due to the fault. Interestingly, this was the second such incident reported in a single day. Prior to this incident, another PIA plane flying from Sialkot to Jeddah experienced smog warnings within the cockpit. 

    In response to these events, the PIA spokesperson issued a statement reassuring passengers aboard the grounded plane that arrangements were being made for their prompt departure from Lahore to Jeddah. 

  • PIA to be privatised: assets, debt and staff to be transferred

    PIA to be privatised: assets, debt and staff to be transferred

    Pakistan International Airlines (PIA), which has been running at a loss, has unveiled its privatisation plan. Sources indicate that this plan encompasses not only the privatisation of PIA but also the power distribution companies and the revival of Pakistan Steel Mills.

    Furthermore, it has been reported that the process of appointing a financial advisor for PIA’s privatisation is underway. While PIA’s affiliated institution will remain unaffected by privatisation, plans have been solidified to address issues related to PIA’s debt and government guarantees.

    According to ARY News, the Privatisation Commission sources have disclosed that, under the current circumstances, Pakistan Steel Mills cannot be privatised. However, efforts will be made to enhance the mill’s production and capabilities to attract potential investors.

    It’s worth noting that the restructuring plan for the privatisation of Pakistan International Airlines (PIA) is progressing rapidly. The PIA administration has invited applications from legal and corporate firms for assistance in this restructuring plan. The Department of Contract Management has been instructed to forward these applications by October 6.

    The assets of PIA, including properties, debts, aircraft, and employees, will be transferred to the new company, presenting PIA as a debt-free organisation to potential investors.

  • CAA’s timely intervention saves PIA from defaulting on IATA payments

    CAA’s timely intervention saves PIA from defaulting on IATA payments

    The Civil Aviation Authority (CAA) stepped in to rescue Pakistan International Airlines (PIA) from a potential financial crisis with the International Air Transport Association (IATA).

    According to ARY News, the CAA provided PIA with one billion Pakistani rupees to settle its outstanding dues with IATA. This timely payment prevented IATA from declaring PIA in default, a situation that could have led to the suspension of PIA’s global ticket sales.

    It’s important to note that PIA was facing a severe financial crisis and couldn’t meet its service charges to IATA. The Director General of CAA confirmed that, following the Ministry of Finance’s directive, one billion rupees were allocated to PIA for a week to support the national airline during these challenging times.

    In addition, it has come to light that PIA also owes a substantial amount to CAA, totaling several billion rupees.

  • Only over our dead bodies: PIA HR chief refutes closure rumours

    Only over our dead bodies: PIA HR chief refutes closure rumours

    The Head of Human Resource (HR) at Pakistan International Airlines (PIA) dismissed media reports about the airline’s poor financial condition and potential closure. He stated, “It will happen only over our dead bodies.” 

    These comments came during a meeting with the Chairman of the Senate Standing Committee on Aviation, Hidayatullah, who had noticed a senior PIA director’s statement about possible closure within 15 days.

    Hidayatullah initiated an investigation and mandated that only the airline’s spokesperson or PR department should communicate with the media.

    A private TV channel had reported concerns about flight operations being suspended by September 15 without emergency funds.

    During the meeting, the HR chief presented an overview of PIA employees, including qualifications, experience, and positions, with a focus on Group IV and above.

    According to Dawn, the committee members stressed their preference for hiring native Pakistanis for overseas roles. The HR chief highlighted the predominance of Pakistani-origin staff in such positions. 

    Performance evaluations for UK-based employees were discussed to ensure fair assessments.

    Furthermore, the HR chief disclosed the dismissal of two employees in Saudi Arabia due to fake degrees, with another under scrutiny. He assured me that all cases were being closely monitored.