- Khursheed Shah expresses concern over dismal state of national flag-carrier
- Aviation advisor says sale of PIA aircraft to Germany a ‘mistake’
KARACHI: The minister in charge of the Aviation Division has submitted details related to financial losses incurred by the Pakistan International Airlines (PIA) to the National Assembly in response to a question raised by Pakistan People’s Party Member National Assembly Shahida Rehmani on Monday.
The details revealed that national flag-carrier suffered losses amounting to more than Rs146 billion during the last four years.
Following rising losses in 2013, the trend reversed in 2014 and 2015, with the airline incurring 27 per cent less losses.
The statement said that an increase in losses in 2016 was expected due to increasing financial expenses resulting from PIA’s acquisition of new aircraft on lease and payment of markup on legacy loans, among other things.
In 2016 alone the airline incurred estimated losses worth Rs37bn.
According to the details provided by the minister, the losses suffered by the airline in past four years are following:
- 2013: 44.32 billion
- 2014: 32.22 billion
- 2015: 32.53 billion
- 2016: 36.95 billion (estimated)
The revelation comes as the national carrier is considering an option of suspending its flight operations for the United States from January next year, primarily because of ‘low traffic’.
The airline has halted booking for its twice-a-week flights for New York from November onward. However, it will continue to operate its two weekly flights — Lahore-New York and Karachi-Lahore-New York — until Dec 31.
Meanwhile, Public Accounts Committee’s (PAC) session, chaired by Leader of the Opposition in National Assembly and PAC Chairman Khursheed Shah, was held.
During the session, the PAC chairman lamented the dismal state of PIA and enquired about the hiring of a convicted man as a PIA chief consultant.
The person in question is receiving Rs1.5 million monthly salary, added the PAC chairman.
Shah also enquired about the contractor of the airline and objected to the advance payment made to him.
“You (PIA officials) have made payments of Rs48 million and no work was carried out,” said Shah.
The details of the PIA employees’ travelling and daily allowances were also summoned by the committee.
Taking notice of the issue of the sale of an aircraft in Malta, Shah said that the issue brought disgrace to the country and issued directives to forward the matter to the National Accountability Bureau.
SALE OF PIA AIRCRAFT TO GERMANY A ‘MISTAKE’
Advisor to Prime Minister on Aviation Sardar Mehtab Abbasi Tuesday termed the decision of ‘sale’ of a Pakistan International Airlines aircraft to a German museum by former German PIA CEO Bernd Hildenbrand a “mistake.”
Talking to a private media outlet, Abbasi further stated that investigation into the transaction is currently underway in Germany, adding that the aircraft was sold along with its engine as well as other valuable machinery.
Abbasi further apprised that PIA was being charged up to $200,000 in parking fee for the aircraft parked in Germany.
Sardar Mehtab Abbasi stated that the airline’s losses have reached the stark $4 billion mark, since neither the government nor the airline’s management or its employees are willing to own it.
However, Abbasi believes that if the airline is able to utilise its resources optimally, it will not be a challenge to revive the national airline.
“There is a lot of talent, a lot of potential, if they (PIA) utilises their potential to the maximum then things can change,” he said.
