PIA may suffer Rs112b loss this year: CEO

Hayat warns airline’s annual loss will hit Rs259b in 2030 if not restructured

ISLAMABAD:

Pakistan International Airlines (PIA) CEO Air Vice Marshal Amir Hayat on Wednesday said the national carrier was expected to suffer a loss of Rs112 billion in the ongoing year.

During a press briefing, the PIA CEO pointed out that the national carrier had sustained a total loss of Rs80 billion in 2022 because of old loans and interest payments.

He added that the PIA had a debt of Rs742 billion which was passed on to its current management.

The airline’s CEO warned that if the airline was not restructured, its annual loss would reach Rs259 billion in 2030.

He told the media that a financial adviser was being hired for the restructuring of the PIA.

“We have drawn up a roadmap for this purpose,” he continued.

He maintained that the running the PIA on a public-private partnership basis was the only solution to turn the airline into a profitable and international standard organisation.

The PIA CEO claimed that maximum reforms had been made in the operations of the airline.

He added that four modern Airbus 320 aircraft were acquired and two long-standing Boeing 777 planes refurbished.

The airline’s chief told the media that one ATR aircraft was repaired and handed over to the Pakistan Navy.

He continued that the dilapidated seats of 11 out of 14 Airbus planes were replaced.

The equipment for other three planes had been acquired and they would be completed in the next few weeks.

The timely departure of PIA flights had been ensured with a ratio of 75%.

The PIA CEO shared with the media that the national carrier operated six weekly flights from Pakistan to Istanbul under a codeshare agreement with Turkish Airlines.

The PIA brand convinced the corporate sector to partner with airline.

He added that co-branding increased the annual target from Rs20 million to Rs500 million that had been achieved by 81%.

The airline’s chief maintained that the PIA had successfully completed all the audits of the European Union Aviation Safety Agency (EASA) and UK Department for Transport.

The PIA CEO said Pakistan’s Civil Aviation Authority (CAA) was in constant touch with British, European and American institutions.

He continued that these institutions were satisfied by legislating according to global requirements.

The airline’s chief hoped that permission would be obtained from the UK in the first phase.

He expected that direct flights would be launched by the end of September.

In a related development, CAA Director General Khaqan Murtaza said the federal cabinet had approved the National Aviation Policy, 2023.

He added that consumer protection and aviation on-site committees had been formed.

The CAA DG elaborated that air services and tourism licences would be facilitated.

Murtaza explained that the CAA had been divided on the demand of the International Civil Aviation Organisation (ICAO).

He continued that the president had approved the CAA and Pakistan Airports Authority’s rules.

The CAA DG said the Islamabad airport would be outsourced in the first phase.

Murtaza maintained that all the significant safety concerns of the ICAO had been addressed.

He added that the EASA and UK Department for Transport had completed their online audits.