Minister for Aviation and Railways Khawaja Saad Rafique has said that despite an annual loss of Rs20 billion which the national flag carrier is bearing due to an “irresponsible statement” of the former aviation minister, Pakistan International Airlines (PIA) is going to achieve its highest revenue target this year.
“PIA is passing through a difficult phase. We are still hopeful that the national carrier will achieve its revenue target of Rs170 billion,” Rafique told reporters during a press conference on Saturday.
He added that currently PIA was operating with a fleet of 28 aircraft and the magic number required to take the airline out of the financial crisis was 40 aircraft. “The airline is aiming to achieve this number, with its own resources.”
In the past, PIA operated with a fleet of 100 aircraft. In the near future, new planes would not be bought due to dearth of funds, but it would go for a dry lease option to add new aircraft to the fleet, the minister stated.
Rafique added that two 777 aircraft would be added to the national fleet after rehabilitation by January next year.
Talking about rumours of selling Roosevelt Hotel, a prime property of PIA situated in Manhattan, the minister stated they were not going to sell the hotel.
“We only have the option to revive and operate Roosevelt Hotel. We will opt for a joint venture to make this hotel a high-rise building and a profitable property, as it is currently costing us $25 million annually,” Rafique explained.
The minister said that they were also looking for joint ventures with different airlines that were requesting access to a country of over 220 million people.
“PIA has earned Rs2.14 billion through a joint venture with Turkish Airlines and has sold 38,000 tickets. Emirates is next as we are chalking out a similar plan with them,” he added.
“There are many other airlines with which we can work but the deals should create a win-win situation for both parties, as we are not going to lose our prime destinations like Gulf, Saudi Arabia and Europe, which generate a major chunk of our business,” Rafique underlined.
While talking about the state of Pakistan Railways, the minister said that they had requested the government to provide some support from the World Bank in the aftermath of floods, which had extensively destroyed the railway infrastructure.
“Railway operations were at a halt for two months due to floods and we have not received any assistance from the federal government. Despite this, we are hopeful of achieving a revenue target of Rs64.7 billion this year,” he noted.
Rafique added that due to a 2.5-time increase in fuel cost, the railways had no other option but to increase its fares.
“We do not have any choice, as we have to pay huge amounts in monthly salaries and pensions. If the federal government takes the responsibility of pensioners, the railways will become a profitable entity,” he emphasised.
The minister, however, underlined that the federal government too was under pressure and “we do not want to add to its burden”. The way towards success for both PIA and Pakistan Railways was through undertaking structural reforms and fiscal discipline, he added.
Published in The Express Tribune, December 18th, 2022.
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