PIA losses touch Rs300m as anti-privatisation protest enters third day

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  • JAC refuses, other union leaders reach Islamabad on aviation secretary’s offer for talks

Employees of the Pakistan International Airlines (PIA) continued their countrywide protest against proposed privatisation of the national flag carrier for the third consecutive day on Thursday.

Thousands of PIA workers gathered outside the head-office of the airline located behind Jinnah Terminal and chanted slogans against the proposed privatisation of the national flag carrier.

Similar protests were held in Islamabad, Rawalpindi, Lahore, Peshawar, and Multan, where the booking and reservation procedure has been halted till February 2.

The protesters, who were carrying placards and banners, chanted slogans against the authorities. They warned that the flight operations would be suspended if the privatisation bill was not taken back.

Meanwhile, Aviation Secretary Irfan Elahi invited all PIA union leaders to Islamabad on Friday for talks but Captain Sohail Baloch, the chief of PIA’s Joint Action Committee, turned down his offer.

He said he would like to meet only with Prime Minister Nawaz Sharif or Finance Minister Ishaq Dar, adding, “The government must take back its privatisation plan. The PIA is a government asset and it should not be privatised.”

On the other hand, Shamim Akmal and other union leaders reached Islamabad for a meeting with the Aviation secretary without any consultation with the protesting workers.

Owing to the ongoing countrywide strike, the losses of PIA have touched Rs 300 million.

Talking to Pakistan Today, PIA spokesman Daniyal Gilani said there was a 30-35 per cent decline in seat reservations.

“As PIA’s town booking offices are closed throughout the country, customers are reluctant about reservation,” he said.

Meanwhile, PIA Chairman Naseer S Jaffer and other government officials are in contact with the various PIA unions for end of their protest.

The government has set afoot plans to hand over 26 per cent shares of the PIA to private sector by July this year, following years of crushing losses and mismanagement.

In December last year the National Assembly passed a bill, the Pakistan International Airlines Corporation (Conversion) Bill, 2015, with majority to convert the national airline into a public limited company. The government however stopped short of announcing its privatisation plans. The move drew a fierce backlash from PIA employees.

PIA’s cumulative losses were 227 billion rupees ($2.2 billion) as of June 2014. The government had to inject 12 to 15 billion rupees annually to keep the airline alive and pay employees.