Govt all set to transfer flight operations to new airline

 

Govt has opted for best available alternative

Islamabad: The federal government is all set to transfer flight operations and cargo services to the newly established company, Pakistan Airways, as soon as the proposed bill to convert Pakistan International Airlines into company is approved by the joint session of Parliament, The News learned reliably.

A senior official, coordinating between the Finance Ministry, Civil Aviation, Privatisation Commission and the Law Ministry, confided to this correspondent that the government plans to shift flying and cargo services to the newly established Pakistan Airways in first step. Then Pakistan Airways' 26 percent shares will be offered for sale to private sector with a plan to invest for purchase of new aircraft and in other required areas. The purpose is to make this new company a success story as soon as it is launched.

After attracting private sector to Pakistan Airways and making it in running position, properties of the Pakistan International Airlines (PIA) will be transferred to Pakistan Airways gradually. At the same time, all liabilities will remain with the PIA, an opposition leader present in the briefing given by finance minister to parliamentarians said. And the PIA would be ready to declare bankruptcy, he told this correspondent. It has been decided to implement all the measures as soon as parliament gives its nod, a government parliamentarian told The News.

A ruling party MNA said everybody knows about the very week financial situation of the PIA, whose affairs are marred by political recruitments. In nowhere in the world such things happen. He said people’s money was going down the drain and the government wants to avert this situation by presenting the best alternative.

This is worth mentioning that the government has given commitments to international financial institutions to get rid of ailing PIA in this financial year and PIA is on list of Privatisation Commission for sale.

At this point, the opposition specially PTI and PPP questioned definition of privatisation as the finance minister opined that this was not privatisation but just offload of 26 percent shares in order to improve the performance of the company. He also ensured that not a single employee will be laid off from service. But the opposition didn’t agree with the explanation.

Because of the PML-N majority in the National Assembly the bill will be approved by the joint sitting of parliament. But the opposition will be given ample time to discuss the proposed bill to be tabled before the august House Tuesday (today).