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PIA posts loss of Rs38bn

Discussion in 'Pakistan Economy' started by Blackpearl, Oct 29, 2008.

  1. Blackpearl

    Blackpearl FULL MEMBER

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    PIA posts loss of Rs38bn -DAWN - Top Stories; October 29, 2008

    PIA posts loss of Rs38bn


    KARACHI, Oct 28: Pakistan International Airlines announced a big nine-month loss on Tuesday, blaming a spike in global fuel prices and the sinking value of the rupee.

    The flag carrier posted an after-tax loss of Rs38.4 billion for the period ending September 30, compared with Rs10 billion in the same period a year earlier.

    Fuel expenditure alone had increased by Rs12.2 billion over the nine months compared with last year, the airline said in a statement.

    A further Rs22.8 billion was lost due to the “steep depreciation” of the rupee against the dollar and the need to pay dollar-denominated loans and lease obligations, it added.

    “The board observed that if the current downward trend of fuel price continues, the financial position of PIA would improve going forward,” the statement said.

    “The airline will work on measures to contain the loss situation and bring about sustainable improvement in the near future that should make PIA a profitable organisation,” a spokesman said.—AFP


    I want to know is there any discussion in some other thread regarding PIA, because i am interested in PIA news.

    Please direct this thread to appropriate forum or thread.
     
  2. Imran Khan

    Imran Khan PDF VETERAN

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    i love pia and wana see always fly pia loss no prob our every thing go to loss


    FLY EVEN LOSS:pakistan::pakistan::pakistan:

    b1c583546d56e78bac89a1aa34590f07.jpg
    :pakistan:
    ee468fb2ac001bc3f8082616ace306ce.jpg

    afc7f6fd5853e69c67dd318e2b63c846.jpg

    WE ARE WITH YOU PIA
     
    Last edited: Oct 30, 2008
  3. CanadianPad

    CanadianPad FULL MEMBER

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    No one in PIA wants to cut their own expenses or cut all the theft that the PIA employees are doing. Bunch of thieves these PIA staff. Cutting the same hand that feeds them.
    Pakistan is going down. PIA is the same way.
     
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  4. mujahideen

    mujahideen SENIOR MEMBER

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    Once the pride of Pakistan, and now well I dont know what to call it.
     
  5. muse

    muse ELITE MEMBER

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    No small accomplishment: more than two decades of loss production - isn't socialism wonderful? In private hands, losses could not be sustained for more than a year or two, but in the hands of the politicans it is not an airline anymore, it's a jobs scheme - So, job well done.:wave::wave:

    Oh, and, "awam" something or the other -- yes, the peasants are revolting.
     
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  6. Kharian_Beast

    Kharian_Beast FULL MEMBER

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    Mismanagement 101.
     
  7. bhangra12345

    bhangra12345 FULL MEMBER

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    Does Pakistan allow private airline companies?

    if so, are there any?

    thanks in advance
     
  8. Imran Khan

    Imran Khan PDF VETERAN

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  9. Rebillious

    Rebillious FULL MEMBER

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    PIA should go to HELL............

    pia is destroying our aviation industry.....
     
  10. Imran Khan

    Imran Khan PDF VETERAN

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    what is our aviation industry without PIA :lol:

    i thing industry is 15 planes and PIA is 49 so :enjoy:
     
  11. Neo

    Neo RETIRED

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    KARACHI (November 01 2008): The Managing Director PIA, Captain Mohammad Aijaz Haroon has said that high fuel costs and devaluation of Pak rupees are the main reason for the airline's loss. He was addressing a gathering of PIA employees at PIA Training Centre Karachi. Employees representing all departments including staff, officers, general managers and all directors were present in the meeting.

    With regard to PIA's loans and lease obligations, payments are also being affected, as with a one-rupee change, there is an impact of Rs 1.4 billion, he added. The meeting also discussed the inconsistent polices in the past, aviation policy, geo-political situation that have affected tourism and interest rates on short-term borrowings.

    The employees were informed about the short-term measures already implemented by PIA. These measures are include challenging revenue targets to stations with strict monitoring, increase in fare and fuel surcharge, effective controls in reservation systems (shifting to Sabre Reservation System especially in UK, where bookings by agents have tremendously increased), reconfiguration of B747-300 fleet (now with increased capacity are being utilised for Hajj operations), increase in third party business, retrenchment of excessively paid contractual employees, downsizing of offices abroad, withdrawal of operations officers from foreign stations and effective Revenue Management.

    PIA MD praised the performance of the engineering department for their outstanding services, which has increased the third party business (aircraft maintenance services to other airlines). He further informed the employees that the organisation restructuring measures such as promotions of employees (from Pay group 1 to VIII) on the basis of one-time promotion to employees, who were neglected in the past, have already been implemented.

    Other measures such elimination of bell curve appraisal system, reduction in the number of directors to 08 and GMs to 47, abolition of deduction of 5 percent basic pay on OPD Medical Charges, down gradation of positions of GMs in USA, Saudi Arabia, United Kingdom and United Arab Emirates, absorption of around 4,500 contractual employees of Pay groups from 1-IV in permanent category, placement of MBA degree holders in higher pay groups and streamlining of Cabin Crews overtime.

    The employees were also told about the airlines performance in 2008 with projections for the years 2009, 2010 and 2011 keeping in view the external factors affecting the airline. With expected, current fuel price at around $70 per barrel and stable exchange rate, it is anticipated that the airline would earn profit in the year 2011, he added.

    The measures proposed to the government for their active support were also discussed. The communication meeting for the first time in the airline's history included members and officials of all PIA Unions and the airline's associations, where Haroon gave a detailed presentation to the employees.

    They were apprised of the past and present financial position and the proposed PIA strategic plan for the next three years. Further, the MD emphasised the importance of teamwork said that collectively as a team, PIA will be able to come out of the financial difficulties soon.-PR
     
  12. Neo

    Neo RETIRED

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    KARACHI: A communication meeting of members, officials and representatives of all PIA unions and the airline’s associations was held on Friday.

    According to a press release of the airline, Mohammad Aijaz Haroon, Managing Director PIA gave a detailed presentation. He informed the meeting about the past and present financial position and the proposed PIA strategic plan for the next three years.

    “With expected and current fuel price at around $70 per barrel and stable exchange rate, it is anticipated that the airline would be profitable in the year 2011,” he added. He informed about the airline’s performance in 2008 with projections for the years 2009, 2010 and 2011 keeping in view the external factors affecting the airline.

    He said the main reason for the airline’s loss was due to the high fuel costs and devaluation of Pakistani rupee, which were beyond the control of the airline.

    With regard to PIA’s loans and lease obligations, the payments are also affected, as with a one-rupee change, there is an impact of Rs 1.4 billion, he added.

    He emphasised the importance of teamwork and said PIA would be able to come out of the financial difficulties. He said the purpose of the meeting was to inform the employees of the action plan to be initiated. Ideas and suggestions from employees were also welcomed. He informed the employees of the organisation restructuring measures, besides about the short-term measures already implemented.
     
  13. pkpatriotic

    pkpatriotic SENIOR MEMBER

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    Hmmmmm The PIA losses stories....:lol:
    This is not a new news but as usual rotine, by the way which one of government owned institution running in profit other then the politics but its for individuals not for nation.
    PIA bearing heavy losses since a long,
    Pakistan Railway is running in loss,
    KESC running in loss,
    WAPDA running in loss,
    Steel mills Running in loss, and now .....
    Banks in loss...........State bank in loss.............even whole country's economy is in verg of ******......... every body knows why all institutions are facing loss while fares of PIA & Railways increased upto unimigine and un bearable beyond the limit of peoples which now avoiding to trevel.
    While The rates of electricity have also been increased, further more the electricity companies WAPDA & KESC instructed to forged the peoples by overbilling............and balah balah :blah:
    The politicians and the senior bureaucrates are not willing to reduce expenses and but they have increased their levishes more then before.....:lol: where the money goes :cheesy:

    We are now taking a bowl to beg....despite the majority of political elites are billioniors like ZarDari, Sharif brothers, Maulana Diesal, etc and they are foreign banks account further rising up fast as poosible depend upo opportunities, just with in few months. On the other side the Poor nation faces all impacts onj their pocket and the difference between richest and the poorest is becoming more wider & quicker.......... that one side the richest elites who have approx 250 billions in foreign banks continue to increase by unfair means (while Pakistani became begger in front of international community).......... while on other side the almost 40% peoples are hard to survive while the remianing 45% are forced to survive with in the US$ 1.40/day equal to PK Rs 115/day subjected to the availablity of Job/ labor at daily wages, where the maze rates are in between Rs 80 to 120/kg, Flour (Atta) rate is Rs36/kg.......:tsk:

    In fact we need a revolution like Iran or China. Revolution is much needed than ever. I hope and pray to almighty Allah to send a strong General from our Army to coup this corrupt government and cull all of these dirty politicians the suckers like Zardari, Nawaz, Qazi, Mulana (Diesal) Fazul ur Rehman, these so call Pakistani Taliban, the corrupt bireaucrates (exception of loyal & honest also there) and who ever is committing atrocities against the people of Pakistan. He need put them all somewhere in the ocean and nuke them. Once The Great Chairman Mao Zi Thung stated “Killing one is a cure for one hundred thousand”.

    Someone needs to make an example out of these traitors of Pakistan, so the current and the future generation will think twice of harming the interests of Pakistan. Then everything will be ameliorated automatically InshahAllah. May Allah Kareem bestow is rehma on Pakistan and gives hidaya to the people of Pakistan… Ameen.
     
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