SLAMABAD (updated on: June 06, 2008, 14:34 PST): Minister for Defence Chaudhry Ahmed Mukhtar on Friday said there is no plan to privatise PIA or sell its assets, which were giving considerable profit and are worth millions of dollars.

Speaking in the National Assembly on a calling attention notice, he said PIA has accumulated losses of over Rs 40 billion during the last fiscal year, has been going down over the last few years by Rs 1.5 billion every month.

Mukhtar said no one is going to purchase the airline given the present situation of the PIA.

The airline, he added, can survive if the government injects equity, which will allow it to pay off all the loans.

Replying to a question from Anusha Rehman, he said PIA assets have gained in value and the Roosevelt Hotel in New York is now worth more than 50 million dollars. He said it is also earning a profit of 15 million dollars a year.

Ahmed Mukhtar said in a couple of months a plan will be unveiled for the survival of national airlines without large loans from the government and hoped that by 2010 it will turn around.

To minimize the losses, he said, PIA has already removed seven directors and 12 general managers who were drawing hefty salaries and perks.

He said PIA has brought a large number of expensive Boeing-777 aircraft for which it has to pay an interest of Rs 7.5 billion every month.

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Sell it I mean really if it is in the interest of the country to get rid of a disease then why not? Considering the fact that oil prices have gone through the roof we will need to worry less about it. Also there will be one place less for corruption.

PIA is in government ownership. To make it profitable we must :

1. Buy cheap aircraft
2. Have more flights and cheap landing rights
3. improve customer service
4. Have competitive pricing
5. select personnel on merit and not on nepotism or contacts
6. Improve its image
7. Quality food
8. stop overloading of luggage
9. increase carrier trade
10. reduce queuing times
11. improve on-line bookings
12. Consistent ticket pricing
13. Improve man management and personnel training
14. stronger unionise the workers
15. reduce political influence in its operation
16. invite investors
17. Improve logistics and servicing
18. Start budget routes
19. Have performance related schemes
20. Allow private aircraft leases to holiday companies etc

There are more than enough Pakistani passengers to make PIA extremely profitable but for many of them PIA is a last option. I have had my own bad experiences and so many have stories to tell of their experiences. Once I was travelling to PAkistan and the toilet overflowed and water was overflowing to underneath the seats.All they did was spray air freshner. The air stewardesses behave as if they are only doing the job under duress. Some of them look as if they have never smled in their life!

I only travel on PIA for patriotic reasons.

He's either lying through his nose, or just talking without facts.
777's are the only ones generating profits, as it's the most fuel-efficient airliner.

PIA's in the red for the last many many years, and he's saying that it's profitable (in the first paragraph).
Then he contradicts himself in the second paragraph.
Then he goes on to say that Rosevelts profit of $ 15 M will bale out PIA, with a accumulated loss of Rs. 40 Billion and monthly interest of 7.5 Bil??
And not giving salary to 12 GM"s will solve some of the problems.

Again, they don't intend to privatize it, but inject more equity just to keep it alive, completely forgetting that we have no alternate power, fuel, or food options.

Have honest, intelligent, dedicated and knowledgeable leadership. thats all it would take to turn it around.

When PIA first flew Emirates didnt even exist now compare the two! Instead of going forward its gone back.

Privatise it .... then tax is heavily after the 10 year grace period