Pakistan to privatize national airline next year: Minister
Pakistan is planning to privatize its national carrier next year following years of increasing losses and mismanagement that have badly tarnished the airline's reputation both in the country and worldwide.
According to the announcement, which was made by the country’s Privatization Minister Mohammad Zubair on Tuesday, the plan to privatize Pakistan International Airlines (PIA) will get underway as of next July, AFP reported.
"We are planning to privatize PIA in view of its heavy and recurring financial losses," Zubair added.
According to the minister, after the government approves the sale, the Privatization Commission will start to sell the struggling airline on the international market.
Zubair further noted that the government in Islamabad is considering the mode of privatization but one option is to sell 26 percent of the total shares along with management control.
"We will hold road shows in the Middle East and China as well as in Europe to find a buyer," he added.
As a preliminary measure before the plan goes fully into gear, the government of Pakistan converted PIA's state-owned status to a "commercial entity" through an ordinance over the weekend, but stopped short of announcing its privatization plans.
The move sparked a fierce backlash among the majority of the airline’s 15,000 employees, who subsequently held protest rallies at major airports across the country on Monday and Tuesday.
"This is our peaceful protest against the government plan," said Shamim Akmal, a senior employee representative.
According to state figures, PIA's cumulative losses stood at 227 billion rupees (USD 2.2 billion) as of last June.
During past years, the government has been forced to inject between 12 and 15 billion rupees annually to keep the airline alive and also pay its employees.
PIA, which was one of the world's leading airlines during the 1970s, is now suffering from frequent flight cancellations and delays and has been involved in numerous controversies over the years, including a case in which one of its pilots was jailed in Britain in 2013 for being drunk.
The airline has been also facing major problems for acquiring security clearances to enter the European Union countries for cargo flights.
The airline has also traditionally handed out tens of thousands of free tickets each year, contributing to its losses.
"If anybody has a better plan (except privatization), we are ready to listen to that," the minister said.
Crude prices fall on possible ceasefire in Lebanon
Breaking up Google an option being considered by US, report shows
Boycott on Israel helped Arabs revive their economies: Analysis
Diplomat discourages recourse to pressure, intimidation, confrontation against Iran
UN: 2024 deadliest year for aid workers amid genocide in Gaza
Gaza health official warns of hospital shutdowns within 48 hours
Israel kills 5 more paramedics in southern Lebanon: Health ministry
Iran to launch ‘new, advanced’ centrifuges in response to IAEA resolution: AEOI
Yemen fires hypersonic missile at Israeli airbase
VIDEO | New Delhi chokes under toxic smog as air quality remains at hazardous levels
VIDEO | Press TV's news headlines
PressTV NEWSLETTER
now
This makes it easy to access the Press TV website
