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PIA suffers Rs5.4b loss in five months
Special committee of the Public Accounts Committee (PAC) has been told that the Pakistan International Airlines (PIA)...
Management develops plan to pull out of losses
KARACHI: Special committee of the Public Accounts Committee (PAC) has been told that the Pakistan International Airlines (PIA) has suffered losses of Rs5.4 billion in the first five months of the current calendar year.
The committee met here on Tuesday, under the chairmanship of Zahid Hamid, to review pending audit objections in respect of accounts of defence ministry and its subordinate departments for fiscal year 1990-91.
Chief Officer, Faisal Malik, told the committee the PIA management has evolved a comprehensive business plan to pull the national airline out of losses. “PIA has to suffer loss amounting to Rs1 billion due to depreciation of the rupee against the dollar. PIA is bearing the brunt of payment of Rs1.8 billion per annum due to regularisation of daily-wage employees and reinstatement of sacked employees,” he pointed out. Malik suggested that if the problem of loans was addressed, then PIA could stand on its feet.
The committee was also informed that the Civil Aviation Authority (CAA) had obtained loans of Rs100 million at an interest rate of 10.5 per cent per annum from Habib Bank Limited, despite the fact that it was having a balance of Rs277 billion in its account in the bank. Online
Published in The Express Tribune, July 14th, 2010.
Reader Comments (9)
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I think you mean 277 million and it’s actually quite common for businesses to take loans as they have minimum cash requirement levels as mandated by their boards.Recommend
If PIA is loosing millions every month why is it not being privatised? Commercial concerns are to make money not loose. Even if it is given away free, at least it will not be a constant burden on the national exchequer. Same should be the case for the Steel mill, WAPDA, Railways and other loss making Organisations.Recommend
it is not convincing to accept the losses if we compare the fares PIA is charging on domestic and international sectors. For example, Karachi Jeddah Karachi is a monopoly sector of PIA and the fares being charged in the name of ‘Umrah Season’ and ‘Hajj Season’ {3-1/2 hours jounry] are much much higher than those airlines operating from Pakistan to Europe and America Canada. There are some other elements always connected with PIA resulting losses and mismanagement.Recommend
yes the reason is that PIA rates are higher than the other companies for example in Denmark PIA goes to karachi lahore n islamabad Approx. 88000 Rs round trip and the turkish airlines or itihad via some stops took the same route for 59000 Rs so people are not crazy to pay extra to PIA the took the most less rate flight.
if PIA also put their rates down then people will appriciate this and took only PIA flights.
if any one responsible persom from media read my these comments then plz search yourself n make a report on this issue so PIA could get profit from Pakistanis.Recommend
PIA should know that PIA is only used by pakistani peoples NO other country people used this airline, if old n fake degree holders are making business plans for the PIA then PIA definately loses its customers.
i am here in Eu country from last five years and i can say that people first check the rates of PIA and then check the rates of other airlines so if any other airline have less rate than PIA they took that airline ticket.
every one have computers in their homes and here poeple work only on computers byself and also made their seat reservations on internet but PIA website is also not working for this cause they have contract with their travel agents and PIA took money from these travel agents but Eu generation know all these hidden things, they turn on their computers open the websites of different airlines and check the rates and make their ticket online on computer pay money by their credit cards n take out print of that ticket page n show to the check in people at airports… finish…Recommend
Ahhh! Such a biggest loss generating organization and we still see numerous Airconditioned 16 seeter Vans picking and dropping 1 or 2 staffs. Cant’t PIA arrange small cars like Alto, Cultus etc for a much economical Pick & Drop?Recommend
Why is this drain on our economy not being privatised. It will only improve with privatisation, right now no one in PIA has ANY incentive to do well as they have a govt. job. When new management comes in and needs to make a profit, these people will start working and provide the services their meant to provide to their customers. I have travelled with them in business class to London and their ground staff are awful, i can just imagine how they treat people travelling in economy class!
Its amazing hoe ‘efficient’ staff become when they know they have to make a profit or they will lose their jobs!Recommend
This is all fake what is written above , its just require money that its . Why I am sure regarding all this because I am traders and also run some trading market , since this whole season of Mangoes , I am trying to export from pakistan and import in differnt regions . Every week I have 5-6 Shipment VIA PIA . But Guess what in a whole week its hardly one of my shipment arrived in canada due to other people pay money under the table to the PIA staff from top to buttom . 17 time I load my shipment and every time shipment get unload becuase other people pay money under the table and use referances , in the same time period one of my friend get heart attac due to his whole shipment of mangoes get unload and he cannot bear the loss just becuase of PIA mangement . Just Simple word as a business men I will prefaire other countries for business . See as I am thinking this other people also . Then from where business will come to our Country ” Pakistan” . This is my clear impression , I can show lots of evedance under this but i dont want to waste more time . I am tired of taking losses just becuase of PIA . So Now its really not effected weather its loss or in profit becuase the truth is they need money not for PIA but from their own pocket and consider all pessenger and cargo ” as export by air . They dont care who pay more even they take the cargo they will unload . So be carfeullRecommend
i think the reason of loss in PIA is extra resouce, i mean where there is a need of 20 ppl, PIA hired 40 ppl,paying more and getting less……Recommend