Pakistan Airways new company in disarray

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By admin March 2, 2016 20:52

Pakistan Airways new company in disarray

On February 19, the Pakistan government registered Pakistan Airways Limited (PAL) as an independent firm company an authorised capital of Rs100 billion. This company is parallel to the national flag carrier – the Pakistan International Airlines Corporation (PIAC).

There has been significant push back on the development of this new airline from certain cabinet ministers. Finance Minister Ishaq Dar and Privatisation Commission Chairman Mohammad Zubair have both opposed the creation of a new airline, saying it would not help to reduce the losses at PIA since the airline would take away its business. Instead, they have suggested the new company become a subsidiary of PIA. This would require PIAC to change its corporate structure, however.
Any new airline would also need to secure a fleet, landing rights and other infrastructure before it could become operational, which would take much longer than the three months suggested by other government ministers.

Prime Minister Nawaz Sharif on the new company’s future ended inconclusively after some federal ministers opposed making the new airline operational.

For now, PAL remains a standalone company but a decision will be taken shortly over its future structure.

Meanwhile, the Privatisation Commission chairman has stated that PIA’s privatisation is the only option to move the company forward. The date of its privatisation depends on when parliament passes the PIAC Limited Bill, which is currently under consideration of the Senate.

admin
By admin March 2, 2016 20:52