PIA, State Ownership & Inefficiencies

[Amaad Lone]

Today I saw an excellent interview of the CEO of Qantas Airways.

In his interview he said 65% of world airlines should have been bankrupt by now.

The no.1 reason for their survival is that they are state owned. And US airlines survive due to chapter 11 laws.

State owned airlines are inefficient, and have no incentive to improve, as they know the bail out plan will always be there. Just like PIA asking for six billion rupees of tax payers money to survive.

And almost 55% of world airlines are state owned.

He said such airlines force Qantas to be extra lean and efficient, as they have unfair competition through subsidies (oil prices & tax benifits). I think he was talking about Emirates which is giving Qantas a run for thier money.

In PIA we talk about high number of employees 22,000 for a fleet of 34, while an industry average is less then 300 per aircraft.

But PIA has always been overstaffed. 1960s/70s/80s/90s, and most of those years it made money. As the matter of fact I read somewhere that when PIA was 33 years old (1988) it had only lost money in three years, 1971 being one of them.

So why do we talk about axing 12,000 jobs, when these jobs never hurt PIA in the past.

Tariq Kirmani talks about higher fuel prices by 10 billion rupees that have killed PIA. But what about higher ticket prices to offset that increase in fuel prices. How much money has PIA made by higher load factor and higher ticket prices.


What about lower fuel consumption due to a more efficient fleet.

An A300 that carried 250 passengers consumed the same amount of fuel as a 329 seat 777. There have been no A300s flying for two years.

Is there something the PIA management is not telling us.

HIDDEN COSTS OF PIA.

Should PIA get a government support loan for six billion rupees, well I think then Air Blue should get atleast a billion.

Are overstaffing and higher fuel prices the only issues PIA has?? Then how come it nearly went bankrupt in 1998???

Will privatization end all of PIA problems???

[mohammad abdulaziz]

Tariq Kirmani talks about higher fuel prices by 10 billion rupees that have killed PIA. But what about higher ticket prices to offset that increase in fuel prices. How much money has PIA made by higher load factor and higher ticket prices.


What about lower fuel consumption due to a more efficient fleet.

An A300 that carried 250 passengers consumed the same amount of fuel as a 329 seat 777. There have been no A300s flying for two years.

Is there something the PIA management is not telling us.

Very good assessment, certainly there are hidden truth they PIA management does not want to reveal.

[CoyBoy]

If PIA is privatised its network will shrink by half, dont you want them to fly to just about everywhere? have you seen Qantas Network?