PIA may get Rs 800 million subsidy for Haj operations

[PK777]

PIA may get Rs 800 million subsidy for Haj operations

RECORDER REPORT

ISLAMABAD (December 30 2005): The Economic Co-ordination Committee (ECC) of the cabinet is likely to give approval of the subsidy to the tune of Rs 800 million to the Pakistan International Airlines (pia) for Haj Operations 2006.

Official sources told Business Recorder on Thursday that the ministry of defence has demanded subsidy of Rs 800 million for the national flag carrier due to high operating cost as a result of increase in fuel prices. As a second option, the concerned ministry has also demanded 20 percent increase in Haj fares on the behalf of pia.

The ECC in its meeting on January 4, 2006 would also discuss both these options and give approval of either Rs 800 million subsidy or 20 percent increase in Haj fare.

The ECC will also discuss the allocation of gas from Fateh Shah Field at Mehran block. In this regard, a summary of ministry of petroleum and natural resources would be considered by the ECC.

Other items on the ECC agenda included data on economic indicators, adjustment of re-lent foreign loans to Wapda with small balances and restructuring of balance sheets of Discos.

The ECC will also take up issue of lender's consent for transfer of foreign direct loans to the computerised entities of Wapda's power wing and policy proposal regarding power generation capacity addition on fast track basis.

The committee would also review the sensitive price indicator (SPI) and prices of sensitive item for the week ending on December 29, 2005.

The State Bank of Pakistan (SBP), Ministry of Commerce and CBR will present the economic indicators, whereas tax authorities will present latest revenue figures up to July-December (2005-2006). The CBR has to meet the target of Rs 690 billion for the current fiscal and the figures of first half of 2005-2006 would give the clear picture about the revenue position. So far, the CBR has collected Rs 245 billion during the first five months (July-November) of the current financial year.


Copyright Business Recorder, 2005

[Amaad Lone]

Maybe the government should float a tender for the Hadj operation, and see which airline gives the lowest bid, but with quality service.

Why should PIA have a monopoly on such traffic, I think the uplift during Hadj (considering its being done by leased aircraft) should be open for competition.

Why not a european charter airline, something to think about.

[cheetah]

Several Countries around the world have tried doing that. In Bangladesh Bismillah Airline was allowed and it resulted in a total disaster due to inexperience in carrying out an operation of this magnitude. Passengers were stranded, landing rights in Saudi Arabia were lost resulting in huge fines. Eventually the government called on Biman to make the correction. Similarly in Indonesia a private airline Indonesian airlines was given authority and the poor Hajis had the most painful experience with extensive delays due to poor management later calling on a goverment enquiry. As a result most countires around the world prefer to give the responsibility to their national airline who inturn charter aircraft and manage it over their existing network.