ISLAMABAD – The board of directors of the national carrier, Pakistan International Airline (PIA) approved the restructuring of the airline on Tuesday.
The board members made no decision regarding the increase of salaries of the employees in the backdrop of the financial hardships being faced by the carrier currently. Meanwhile, well-placed sources confided that the PIA board directed to prepare an integrated restructuring plan to make the airline profitable and financially feasible.
As per the unofficial details available, the Pakistan International Airline PIA will be divided into two factions with distinct roles to improve service delivery, Samaa reported.
The official details regarding the board meeting are yet to be released; however, the division of the airline into two factions was indicated earlier as well.
In a media interaction last month, Aviation and Railways Minister Khawaja Saad Rafiq confirmed that the government will divide Pakistan International Airlines (PIA) into two entities to cope with severe financial deficit.
The minister had told newsmen that in order to fend off the financial crunch, the government would divide the PIA into two entities – administrative and operational.
In a recent speech on the floor of the National Assembly, Saad Rafique said he was against privatization but hastened to add that a holding company would be made for PIA.
Stressing the need for reforms in operating the national flag carrier, the minister said if PIA is not restructured, it could shut down in the next 1-1.5 years.
The Pakistan Muslim League- Nawaz lawmaker advocated the case for privatization of the airline and cited reasons for that.
‘I was against privatization,’ he admitted but said even a person like him has realized that if PIA remains as is, its deficit will increase.
He inquired whether Pakistan can afford this or not and added that to avoid such a situation, the private sector should be brought in.
‘What South African Airlines and Air India did. Tata has placed an order for 450 new planes for Air India. The state cannot run it. The state can ensure that no employee of PIA should be rendered jobless,’ he told his fellow lawmakers.
Revealing the details of the restructuring, the minister said a holding company would be created for PIA adding that the carrier needs billions in investment.
‘You have 27-28 planes that are operational. You cannot compete with the powerful airlines of the Gulf,’ he acknowledged.
The lawmaker assured that the government was putting the airline on the path and said the employees’ rights should be protected.
‘No one should be allowed to play politics on this. It can be profitable — if the private sector comes. It should be on merit,’ said Rafique.
