Govt Considering to Split PIA Into Two Companies

Adviser to Prime Minister on Institutional Reforms and Austerity, Ishrat Husain, has suggested splitting the Pakistan International Airlines (PIA) into two companies for its revival.

He made these remarks during a Federal cabinet meeting on Wednesday, also attended by the PIA Chief Executive Officer, Arshad Malik.


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Ishrat Hussain emphasized that it is the only viable option for the national airline’s revival, which will create a new core business operating company without any debt. He also suggested establishing a non-core company to park all liabilities and debt.

PIA has its strengths as well, such as rights over lucrative routes, secured during its golden years, and splitting the airline into two will provide it a fair chance of revival.

He suggested PIA to target nine million Pakistani expatriates and encourage them to travel through the national airline.

During the meeting, PIA CEO revealed that the total debt of the airline stood at Rs. 400 billion with annual interest payments of Rs. 24 billion.


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He highlighted several factors behind PIA’s losses over the years, including old aircraft usage with poor seating arrangement, no entertainment system, unprofitable destinations, overstaffing, union activities, and corruption.

Airline management has introduced a segregation scheme for 4,000 non-core employees and a voluntary separation scheme (VSS) for 3,000 employees to overcome overstaffing. The scheme will cost Rs. 12.87 billion with payback in two and a half to three years.

  • In the first step PIA CEO Arshad Malik and his team of non commercial background should voluntarily resign and do away with his monthly salary of RS 2.0 million. That will save PIA from further revenue loss. PIA should public it’s balance sheet for the year 2019 till September 2020. Splitting PIA into core and non core will not workout unless a commercial team take over PIA management.

    • Sorry to say that there is no value of the comments in this environments
      Where we dont awarded any return and reward so i want to with draw my comments as a guest on voliantary basis.Kindly delete my comments from your post Thanks

    • its been 40 years we have seen how competent you commercial are.. we know better its only matter that we should keep seeing losses and you corrupt people made their earnings with out any hesitation so that you should make more a more money

  • I have lot of hopes in Allah will help and guide us about the better future of PIA.
    Persons who are commonding and Leading and providing non serious comments against PIA it is there personal wish to damage Pakistan Flage carrier Airline .Lets us survay and TAKE opinion form public of Pakistan. These two personalities opinion is not a final decision.we as a pakistani reserve our rights to say that they sholud quit and make a plan which should keep PIA intact
    We all pakistani dont want to see and accept PIA damage.

  • this is happened because of overcrowding pia should fire 2000 extra employees they are burden to national carrier they all are political worker not educated persons. 60 employee for one plane is enough we dont want 138 employee for one plane..

    • PIA has 781 employees per Aircraft not 138.
      Secondly it’s not easy to Fire Extra employees, it’s Pakistan not US.
      3rdly state should take some responsibility and made a think tank to handle these matters.
      85 years Mr. Ishrat Hussain isn’t updated with new Senario.
      Lastly, PIA has 19 sub business even later it has Poultry farming business as well.
      So, its humble request PIA should focus on Core business and remaining made a company with good TORs.

  • You are talking of segregation of experienced employees and on the other hand employing people from Air force who have no experience of commercial air line? Please name any airline who is run by martial’s. Commercial is non marital mentality.

  • The friends of bogus license holders are having pain with the Air Force guys, it’s understandable. Plz read some history, Emirates was raised by PIA, and PIA was raised by Nur Khan from PAF. PIA has hit the rock bottom because of non professional and mafia like practices. These Air Force guys will IA revive it. God Bless PIA.

    • Noor خان was an exceptional case, otherwise these AF people are now the reason for going down of civil aviation authority

  • The corrupt political government hired a crowd of their party workers and their media cells blaming present set up who is trying to revive it

  • The only way to revive PIA is completely privatise it, the pak Airforce can not turn it around

  • Instead of further experimenting, we should privatise the airline. The root s have decayed and cannot be revived. No need wasting time.

  • The only positive thing the AF PIA management has done is they have stamped foreign countries visas for themselves and families, including issued free upgraded tickets for there families as well besides other enjoyments. Aircraft entertainment system and employees medical facilities are given to brothers in arms who have cost PIA budget dearly.

  • There are both types of Comments to work with PAF and without PAF. No doubt about it that Corrupt political elite ruined it and messed up PIA, but it’s also clearly noticed that currently, a commercial Airliners demands much than before. AM Noor Khan was successful because of old traditions but right now Airlines means much more than an Airlines, so we needs a qualified unbiased CEO who can run it with latest requirements plus segregation of non core business is also a good idea.
    Nur Khan established Poultry business in PIA and it’s worked at that time but now PIA should get rid of its non core business.

  • PIA will start making money as soon as it moves it’s operational offices to Islamabad and dumps its Karachi based unions.

  • I have been with AM arshad malik. he has vast experience of aviation. lets come to the truth
    PIA was raised by PAF chief Nur khan. it was the best airlines in the world under his command.
    what happened that a top airline got so damages it became the worst.
    now coming to the point who is AM arshad malik
    He had commanded PAF base Rafiqui which has at least 100 aircrafts under his command and control with zero accident rate in his tenure.
    He been chairman of PAC Kamra which is manufacturing light weight commercial and trainer aircrafts under his comman at least there was production of 300 aircrafts in PAC and PAC pakistan aeronautical complex earned record highest ever revenue.
    What PIA got after Nur khan when it was in hands of this corrupt politicians
    over 40 years pIA only suffered losses not profit.
    was it not enough time 40 years to see them that PIA declined how much we should see thees corrupted politicians that when they will turn a single department into profit maker.
    get it short
    There is aircraft to manpower ratio in every airline that must be suitable that it should meet expenses to earn profit
    in airforce why… he is willing to induct PAF personnel because of your incompetent workers and staff as well ots been 40 years what you gave this airline only losses.
    in airforce the aircraft to manpower ratio is about 8 to 10 workers and 6 supervisor these are enough to take all maintenance tasks. and arshad malik has made it happen and seen when he was chairman PAC who is more experience and competent than him no one in PIA. he has produced largest ever revenue in his tenure in PAC chairmanship.
    Allah bless Arshad Malik.

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