PIA incurred accumulated losses worth over Rs169 bn

Accumulated losses of the airline amount to over Rs160 billion.

ISLAMABAD: Pakistan International Airline (PIA) incurred an accumulated loss of Rs169.921 billion as of June 30, 2013 with loss accrued since January 2013 totaling Rs18.007 billion, Finance Division said on Friday.

Addressing the Senate, the division said that there were outstanding loans, both domestic and foreign that amounted to Rs160 billion.

The statement from the Finance Division was issued in response to a query forwarded by Senator Sehar Kamran and Senator Tahir Hussain Mashadi.

Of the total amount of outstanding loans, Rs86.850 billion was domestic loans.

The statement said that Rs50 billion worth of loans were spent on the purchase of aircraft while the remaining Rs110 billion were injected as working capital for the airline.

The House was also informed that 148 employees of PIA had been promoted since June, 2013.

Other concerns mentioned in the statement included such things as delayed PIA flights, lack of sufficient number of aircraft, ageing fleet and ground handling limitations abroad.

The Aviation department said that in order to minimise the percentage of the delay, PIA is planning to induct ten aircraft on dry lease and four new fuel efficient narrow body aircraft on wet lease.

The tender notice to invite suitable bids has already been advertised.

Further economic operations have been suspended till the availability of the sufficient number of aircraft.