Pakistan International Airlines (PIA) is presenting a comprehensive business plan to the federal cabinet next week for its revival through an effective strategy to "turn around" national flag career. This was stated by Advisor to Prime Minister on Aviation, Sardar Mehtab Ahmed Khan while talking to media persons after flying the first refurbished Boeing 777 aircraft from Karachi to Islamabad here on Tuesday.
He said, "Once we get approval of the cabinet, there would be a total turn around of the national flag carrier. If the government is ready to pay markup on loans worth $2billion, it would be instrumental in revival of the airline." He requested the federal government to pick up its 'legacy of losses' to help it make a fresh financial start.
The advisor to prime minister on aviation further urged the government to give one time grant to PIA to get it out of abysmal crisis it has been into for the past many years. He said the cumulative losses incurred by PIA over the last ten years had soared to Rs 400 billion and the airlines suffered a loss of Rs 40 billion in 2016 alone. He said efforts are underway to arrest the trend. He said he will ask the government to give a one- time bailout package to PIA.
He said the PIA finds it difficult to make payments against the loans of around two billion US dollars, and said the situation will improve if the government takes this responsibility. Opposing the idea of the airline's privatization, he said, "Our first priority is the restructuring of the airline after which there would be no need for the privatization of the PIA." Major role has to be played by the employees of the PIA under the restructuring plan. There would be no need to think about privatization of the airlines, if the plan was implemented, he claimed.
Sardar Mehtab was confident that the airline would be able to turn around its affairs if it utilizes its resources to the full. "There is a lot of talent, a lot of potential, if they [PIA] utilize their potential to the maximum then things can change," he said. He said airline's losses have reached $4 billion, because neither the government nor the airline's management or its employees are taking the ownership of the airline.
He stated that the PIA has also initiated refurbishing and change of interior of its entire fleet. About the refreshment of the aircraft, Sardar Mehtab stated that PIA's first Boeing 777 aircraft that has been refurbished at PIA engineering base Karachi. This is an in-house project to utilize PIA engineering capabilities and all PIA aircraft will be refurbished.
The advisor said that the in-house refurbishment done includes new seat covers, change of carpet and deep cabin cleanliness. He said that detailed up-gradation of five Boeing 777 aircraft has also been planned. These five aircraft will have new economy and business class seats including up-gradation of in-flight entertainment system and one aircraft will be ready by next year.
He further said that PIA business plan has been prepared and will be presented to the Cabinet Division next week. There is a lot of potential in the aviation industry and the business plan once approved will benefit PIA and positive changes will be witnessed within the next 2-3 years. PIA will increase its fleet strength to 50 aircraft by 2019 which is part of the business plan.
He said that detailed up-gradation of five Boeing 777 aircraft from nose to tail, involving a cost of US $55 million dollars has also been planned. Regarding New York route closure, Sardar Mehtab Ahmed said that in principle, a decision has been made to temporarily suspend the US operation. However, it is not implemented yet. He also dispelled the rumours regarding downsizing in PIA but said that indiscipline and complacency will not be tolerated, he added.
"We are considering to shut some loss making operations to the UK and Gulf," Sardar Mehtab hinted. He further said that the open sky policy though creates competition, yet unfortunately other airlines were given frequencies in the past while not considering the national airlines. He said that now no new requests for frequencies are being entertained.
To a query, he said that the PIA has to work as a commercial company and not as a government organization. He admitted that some senior/old mangers have been replaced with new young energetic managers and such decisions have been taken in the best interest of the airline. He said the planes grounded for want of spare parts will be made operational as part of the revival plan. He said action against organized mafias operating within the PIA to mint money at the cost of national flag-carrier is also area of priority for him. "There will be zero tolerance against corruption," he remarked. He made it clear that corruption, indiscipline and laxity would not be tolerated at any cost.
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