Arif Habib says no PIA employee will be laid off for one year
Offering much-needed reassurance to Pakistan International Airlines (PIA)
employees, prominent businessman and investor Arif Habib, who has recently acquired
the national carrier, has pledged that no employee will be laid off for at
least one year.
In an interview, Habib attributed PIA’s
prolonged financial crisis to mounting debt and high-interest obligations. He
noted that the airline’s liabilities had at one point surged to nearly Rs 800
billion, largely due to unchecked borrowing backed by government guarantees.
Explaining why earlier privatization efforts
failed, Habib cited weak management structures and adverse economic conditions.
He said the latest privatisation succeeded due to improving macroeconomic
indicators, including lower interest rates, a more stable rupee, and better
control over oil prices. These factors, along with a reformed management
framework, helped pave the way for the successful transaction.
At present, only 17 of PIA’s 34 aircraft are
operational. Habib revealed plans to gradually expand the fleet to 38 aircraft.
He added that most of the airline’s assets have been shifted to a holding
company, while the current financial shortfall will be managed over the next
year.
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Habib says job security of PIA employees will depend on their performance
Reaffirming his commitment to employees, Habib
stressed that there would be no layoffs during this period. Instead, competent
and hardworking staff would be promoted on merit. He said the airline’s
turnaround plan places strong emphasis on expanding cargo operations as a major
source of future revenue.
Detailing the ownership structure, Habib said
25 percent of PIA’s shares are jointly held by Fauji Fertilizer, the Arif Habib
Group, and Fatima Fertilizer, while another 25 percent is owned by other
members of the consortium. He also indicated that a new strategic partner could
be brought on board at a later stage.
On funding, Habib explained that although the
airline could have operated with Rs 70 billion, a larger allocation of Rs 125
billion has been committed to ensure long-term sustainability and growth. The
funds will be used for engine replacements, debt servicing, and operational
expenses.
Emphasizing passenger safety, Habib said the
restructured management would maintain zero tolerance for any compromise on
flight safety. Expressing confidence in the reform process, he said PIA could
return to profitability within a year.
Habib disclosed that PIA’s current liabilities
stand at Rs 181 billion. Beyond aviation, he also pointed to the blue economy
as a potential area for future investment.
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owners say more jobs will be created in Pakistan International Airlines (PIA)
Criticizing
the mismanagement of state-owned enterprises, Habib lamented a culture in which
personal interests often take precedence over institutional performance. He
called for a reduced government role limited to policymaking, arguing that
private-sector management is better suited to deliver efficiency, transparency,
and accountability.
Source:
Abb Tak