PAKISTAN: Pakistan International Airlines (PIA) grounds dozens of flights because of ongoing strike over a proposed deal with Turkish Airlines

Record ID: 339041

  • Title: PAKISTAN: Pakistan International Airlines (PIA) grounds dozens of flights because of ongoing strike over a proposed deal with Turkish Airlines
  • Date: 11th February 2011
  • Summary: FLIGHT BOARD/ PASSENGERS
  • Embargoed: 26th February 2011 12:00
  • Keywords:
  • Location: Pakistan, Pakistan
  • Country: Pakistan
  • Topics: Employment,Travel / Tourism
  • Reuters ID: LVA5EIXL00XZ6ZPTUGJFF1HRLLYF
  • Story Text: The country's national airlines was struggling on Thursday (February 10) the third day of strike action by pilots, crews and ground staff working for Pakistan International Airlines (PIA) who are rejecting a proposal to share lucrative routes with Turkish Airlines.
    The PIA strikers also want to sack PIA's managing director, Aijaz Haroon. Haroon is an airline pilot considered a close friend of embattled Pakistani President Asif Ali Zardari.
    "Our strike continues, and it will continue until the M.D. (managing director) goes. Our strike will end when this M.D. resigns," said PIA staff member Nehl Awan, a flight purser at PIA.
    The strikers are also asking for the re-instatement of pilots and other staff who were suspended recently.
    Hundreds of protesters demonstrated at the entrance to the airport.
    Under the proposed deal with Turkish Airlines, which is yet to be approved by the government and regulators, PIA would relinquish some of its lucrative European and U.S. routes.
    This includes flights to Germany, Spain, Italy, France, the Netherlands, Chicago and New York.
    According to a joint action committee of PIA employees, handing over these profitable routes will deprive the national airline of billions of rupees in revenue.
    "There is an unrest among all the employees. The Turkish airline deal is worrisome for our job and our future. All the employees are protesting," said striking PIA employee Mohammad Yahya Zafar.
    PIA spokesman Mashhood Tajwar said 33 domestic and international flights were cancelled on Thursday. About 100 have been cancelled since the strike began on Tuesday.
    Dozens of other flights were delayed, leaving thousands of passengers stranded at airports around the country.
    "The deadline of my holidays is 12th of this month. My visa will expire if I do not reach there. No one is answering here. I don't see any of the PIA staff. If I find someone, he says he knows nothing. Where do I go now?," said Abdul Sami, a Pakistani passenger bound for Saudi Arabia.
    "I am facing trouble for the last four, five hours. Flights are not available. No one is here to give a proper answer," said passenger Khurram Shehzad, who had arrived at the airport to take a domestic flight to Lahore.
    Like many state businesses in Pakistan, PIA has been hit hard by mounting debts and mismanagement. Analysts say any move on the part of the government to further subsidise PIA or other ailing national institutions will not bode well with international donors.
    PIA reported losses of 11.7 billion rupees in the nine months to September 30, 2010, when its cumulative losses stood at 83.7 billion rupees.
    In November 2010, PIA asked the government to write off losses and debt of about 1.7 billion US dollars to save it from bankruptcy, a tough task for the government which relies heavily on foreign aid, and an International Monetary Fund loan programme that, among its many conditions, calls on the government to reduce subsidies and spending.
    The government has yet to agree to PIA's request, officials say.
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