- Official source says Pakistan Airways will act as subsidiary of PIA
The federal government has made up its mind to launch a new airline, Pakistan Airways, which would act as a subsidiary of the Pakistan International Airlines (PIA), Pakistan Today has learnt.
A well-placed source in the government told this scribe that a new airline had been registered under the name of Pakistan Airways.
“Pakistan Airways would help improve the quality of services for national and international travellers. However it will act as a subsidiary of the PIA,” the source added.
When contacted, Danyal Gilani, a spokesperson for the national flag carrier, confirmed the development, saying “Pakistan Airways has been registered as a premium service subsidiary of the PIA and will improve the service standard and image of the national airline.”
Asked if Pakistan Airways would replace the PIA, Gilani clarified the new airline would only be a subsidiary of the PIA.
PREEMPTIVE MOVE TO WEAKEN LABOUR UNION:
Another source in the government however claimed that the news was leaked as a ploy to ‘preempt any new strike from PIA labour union’ as the government was going ahead with its privatistaion plan.
“This is a preemptive move to weaken the PIA union. The recent strike by PIA employees had badly damaged the airline, causing it a loss of Rs 4.31 billion with cancellation of 850 flights during the 15-day strike,” the official added.
During the strike days, Minister for Information Senator Pervaiz Rashid had also said the government would launch a new airline.
The minister had said the government was paying Rs 600 billion annually to the PIA which was a great loss to the national exchequer and the amount could be saved and spent on education and other job generating projects.
He had said that such a big amount to meet the losses of the national airline was a burden on the national kitty, and the government was making sincere efforts to make it a financially-viable entity.
Rashid had said the government was working on different options to turn around the PIA but it was necessary to reform the ‘mischievous elements’ in the airline.