ISLAMABAD: Pakistan International Airlines (PIA) has declared losses of Rs41 billion in the last two years whereas total net worth of the organisation is not more than Rs16 billion.
Senator Tariq Azeem presided over a meeting on Monday of the subordinate committee of the Senate standing committee on defence and reviewed the five-year revival plan of the PIA.
PIA managing director Ijaz Haroon informed the committee that PIA had a deficit of Rs41.7 billion in the last two years. In 2008 alone, the company incurred a loss of Rs35.88 billion.
Discussing the revival plan, Haroon said that the airline plans to purchase 16 new planes and an application has already been sent to the authorities for seeking guarantee.
He further told the committee that PIA has started to reduce its operational expenses, adding it was also working on curbing fraud and dishonesty in the establishment and is expected to save up to Rs3 billion over the next five years.
Haroon requested the government to review the open skies policy drafted in 1992, according to which airlines from central Asian countries can take passengers from Pakistan, which is adversely affecting the business of PIA.
He said that this year no airplanes were leased for Hajj operations and the national flag carrier managed to complete the task by itself.
Published in The Express Tribune, November 23rd, 2010.
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