ISLAMABAD: The People’s Unity of Pakistan International Airlines (PIA) also known as CBA union, declared its intention to commence a strike on Thursday in protest against the privatization of the country’s national airline.
During a press conference, President Hidayatullah of the PIA CBA consortium announced a token strike. This strike entails the closure of all district-level booking offices of the national airline for a period of 2 hours, commencing from Thursday.
He issued a 48-hour ultimatum to both the PIA administration and the interim government. The ultimatum urges them to refrain from pursuing the privatization of the national airline.
He said, “The union will take important decisions on Friday.”
PIA Privatization and Roosevelt Hotel Progress Approved by CCoP
In a significant development, the Cabinet Committee on Privatisation (CCoP) approved the privatization of Pakistan International Airlines (PIA) last Monday.
During a meeting chaired by then Finance Minister Senator Ishaq Dar, the Cabinet Committee on Privatization (CCoP) made the decision.
The proposal of the Privatisation Commission to include Pakistan International Airlines Co. Ltd (PIACL) in the privatisation program was discussed during the meeting.
After deliberation, the CCoP decided to add Pakistan International Airlines Co. Ltd (PIA) to the list of active privatisation projects within the ongoing privatisation program. This decision followed an amendment to the law by the Parliament.
The Privatisation Division presented a detailed update on the privatization of the Roosevelt Hotel.
Following discussions, the CCoP granted approval to the Privatisation Commission to hire a Financial Adviser to facilitate the processing and structuring of transactions related to the Roosevelt Hotel in New York. The Roosevelt Hotel is an asset owned by PIA Investment Limited (PIA-IL).
PIA’s Urgent Call for Privatization Amid Looming Losses
Former aviation minister Khawaja Saad Rafique issued a warning that Pakistan International Airlines (PIA) could potentially incur significant losses of Rs259 billion by the year 2030 if immediate corrective measures are not put in place. These measures include transferring its administrative control to the private sector.
While presenting “The Pakistan International Airlines Corporation (Conversion) (Amendment) Bill, 2023” on the Senate floor, the then federal minister delivered these statements.
Saad Rafique highlighted the critical need for Foreign Direct Investment (FDI) and the transfer of administrative control to the private sector as essential actions to ensure PIA’s sustainability. He pointed out that the airline currently grapples with a substantial debt burden of Rs742 billion.
It is worth mentioning that since 2020, PIA flights to Europe and the UK have remained suspended. This action followed the revocation of the national carrier’s authorization to operate in the bloc by the European Union’s Aviation Safety Agency due to the pilot license scandal.
