* The arrangement would be to allocate seat capacity and revenues of both parties in the applicable routes under one pool arrangement, where the earnings would be shared on the basis of seat capacity floated and prorated revenue.
Karachi, KHI – IST
Four weekly TK. Three weekly PK.
Three weekly TK. Four weekly PK.
Seven weekly PK.
However PK will be retaining its sales personnel at these stations.
Although there is a lot to be desired for PIA from this deal, it remains to be seen which benefits TK will gain from it. Not only does TK have a far better reputation for service than PIA, but also Pakistan emerges as a less than desirable point of transit to most passengers due to the nation’s security issues. A passenger will have a lot more hassle free, and more comfortable transit experience at the competing hubs of Dubai, Abu Dhabi or Doha.
Most of the destinations covered in this agreement by PIA ( the routes that will be operated by PIA and codeshared by TK ) are destinations either TK already has the capacity to serve ( eg: Houston ) or destinations TK had been planning to serve ( eg: Colombo ). Not just that, Malé – a point agreed to be codeshared by TK – is still not even served by PIA.
Last, but not least, PIA unions are known to be very powerful politically and have been able to revert many decisions by the management in the past – as a result of which, the carrier remains heavily overstaffed. The most notable of these is overturning PIA’s retirement plan of the ageing Boeing 747-200s and 747-300s, opposing the layoff of engineers who had been working on the types. Although, sources to The Networker inform that the PIA’s present MD is quite more politically powerful than the unions.
From the outset, the deal appears as if Turkish is giving away its stuff to PIA. However, if put through, this would be a miracle to PIA, giving it a much needed boost and the possibility to finally restructure its network. Miracles are known to happen, so let’s wait and see what will happen to this JV.