PIA lists reasons for constant losses

Informs NA panel that the flag carrier is not overstaffed

ISLAMABAD:

A Pakistan International Airlines (PIA) official informed a parliamentary committee on Friday that both the PIA and other Pakistani airlines have been incurring losses due to permissions granted to foreign airlines for operating additional flights, as well as the ongoing ban imposed by the European Union and the United Kingdom.

During a meeting of the National Assembly Standing Committee on Privatization's sub-committee, the PIA general manager faced a series of questions from committee members regarding the long-standing crisis facing the national carrier.

Responding to these queries, the GM said the PIA is not overstaffed and there have been no new recruitments in the airline over the past 13 years.

"PIA's staff costs are significantly lower compared to airline industry standards. If all aircraft were operational, the current workforce would be sufficient," he said.

The official further noted that the PIA has been unable to induct new aircraft in a timely manner, and various restructuring plans developed over the years were not implemented.

"The bans on flights to Europe and the UK have caused substantial losses for PIA. The business of PIA and other Pakistani airlines has been negatively impacted by the approval of additional flights for foreign airlines to various Pakistani cities," he added.

Earlier, Sehar Kamran, the convener of the sub-committee on privatization, asked why the PIA's business model had failed. Committee member Saba Sadiq inquired about the fate of PIA employees after privatization and why foreign investors have not shown interest in the airline.

The committee also questioned when PIA began operating at a loss, the actual reasons behind the flight bans, and when the open skies policy was implemented.

They further asked how many foreign airlines had been granted permission for additional flights, what the process was for acquiring aircraft on wet lease, and what steps had been taken for PIA's restructuring over time.