Measures have reduced PIA’s losses: PM’s aide

Figure goes down from Rs31.5b to Rs18m in 9MCY14.

ISLAMABAD:

Adviser to the Prime Minister on Aviation Affairs Shujaat Azeem said the loss incurred by Pakistan International Airlines (PIA) during the first nine months of the current calendar year amounted to Rs18 billion, compared to Rs31.5 billion during the corresponding period previous year.

He attributed the reduction in losses to the corrective steps taken to improve the national carrier’s performance.

He said that PIA was paying Rs3.29 billion interest on legacy loans that were taken in 1992. Talking to the media, Azeem said that 10 more narrow body Airbuses and five ATR aircraft would be inducted by the end of this year.

“PIA had received delivery of its 8th A320 aircraft – acquired on a long-term Dry Lease from General Electric,” said Azeem.

“The induction of more airplanes in PIA would help boost its performance and generate more revenue.”

He said the government would soon introduce a new aviation policy and is committed to removing corruption from the institution. The PM’s advisor said that PIA has 25 operational Airbuses and 11 ATR aircraft at present and improving the number would also overcome its financial issues.

In response to a question, he said that the Boeing 747 and the Airbus A310 would be grounded after completion of Hajj operations as these are heavy consumers of fuel, saying that 84% traffic of PIA was operating on short and medium routes.

Published in The Express Tribune, November 1^st, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.