• Wednesday, December 13, 2017

PIA’s financial losses mount to $4 billion

Discussion in 'Pakistan Economy' started by Janbaz Rao, Oct 11, 2017.

  1. Janbaz Rao

    Janbaz Rao FULL MEMBER

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    PIA’s financial losses mount to $4 billion
    • Sardar Mehtab Abbasi holds previous govts, PIA's management and employees responsible for its destruction

    [​IMG]

    ISLAMABAD – Advisor to Prime Minister on Aviation Sardar Mehtab Abbasi on Tuesday terming Pakistan International Airlines “the sinking Titanic” said that its financial losses have surged to $4 billion.

    Talking to media after checking refurbished plane Boeing 777 in Karachi, he held responsible all previous government employees, PIA’s employees and its management for the destruction of national flag carrier as they are not ready to own it.

    Sardar Mehtab said that there is a need to rescue PIA from financial losses, adding that all it can be realised by utilising all available resources.

    Regarding stopping flights to the US, he said that this route inflicted a loss, therefore, it has been decided to suspend the flight operation towards America.

    Talking about the alleged sale of a PIA aircraft to a German museum, Sardar Mehtab termed the decision of former CEO a “mistake.”
     
    Last edited by a moderator: Oct 11, 2017
  2. khanasifm

    khanasifm SENIOR MEMBER

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    What the Fu;( were they doing for last 4 years ? It’s GOVT entity with head appointed by GOVT
     
  3. Clutch

    Clutch SENIOR MEMBER

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    PIA incurs losses worth over Rs146 billion in last 4 years

    Muhammad BilalUpdated October 10, 2017
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    The Pakistan International Airlines (PIA) suffered losses amounting to more than Rs146 billion during the last four years, according to a statement submitted by the Minister in Charge of the Aviation Division.

    The details, submitted in response to a question by PPP MNA Shahida Rehmani during the National Assembly session on Monday, stated that after rising losses in 2013, the trend reversed in 2014 and 2015, with the airline incurring 27 per cent less losses.

    However, the reply stated, a surge in losses in 2016 was expected due to increasing financial expenses resulting from PIA's acquisition of new aircraft on lease and payment of mark-up on legacy loans, among other things.

    The national flag-carrier thus incurred estimated losses worth Rs37bn in 2016 alone.

    ARTICLE CONTINUES AFTER AD
    According to the details provided by the minister, the airline incurred the following losses in past four years:

    • 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 mulling suspending its flight operation for the United States from January next year, primarily because of ‘low traffic’.

    The airline has stopped 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.

    “The PIA is considering closing its flight operation for the US till the financial health of the organisation improves,” a senior official privy to the development had told Dawn on Saturday. “The national flag carrier is already facing acute financial crunch, therefore, it cannot operate on routes which are running in losses,” the official had said, adding that the PIA’s accumulative loss was over Rs300 billion.

    When contacted, PIA spokesman Mashood Tajwar had said that the decision regarding continuing the flight operation for New York after December would be taken in the coming weeks.
     
  4. ziaulislam

    ziaulislam SENIOR MEMBER

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    lol
    there goes one bhasha dam(without the electric turbines which can be added later)
    or deal for 24 typhoons
    0r 3 gawadar like ports
    or lahore to karachi motorway


    and for what?
    what do we gain by owning a airways...like honestly what?..apart from being humiliated everyday in news when PIA people are caught money,drug laundering...so why?

    answer is: corruption by civilian, military and judiciary
     
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  5. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

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    Low quality government and low quality perfromance of national asset
     
  6. HAIDER

    HAIDER ELITE MEMBER

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    PIA is destroyed by PPP and PMLn syasi bhartian. .. Each plane carrys over 500 employees and plus huge corruption in engineering department. Sell parts,tires etc etc.
     
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  7. wiseone2

    wiseone2 BANNED

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    airlines is a hard business.
    Air India racked up $6 billion in losses over a similar time frame
    in any case privatize the PIA
     
  8. Kami leone

    Kami leone SENIOR MEMBER

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    lol not all airline its only ours, learn something from Emirates, Etihad etc. how they make profits.
    PIA is the company which helps making Emirates & Etihad airlines in training and knowledge and see where they are and where we are:(
     
  9. Śakra

    Śakra SENIOR MEMBER

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    U took a picture of yourself wearing only underwear and a t-shirt. Why would you use that as your avatar?? @django check this out
     
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  10. Kami leone

    Kami leone SENIOR MEMBER

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    cz its my wish whts ur problem i am using my own pics not urs:sick:
     
  11. Arsalan

    Arsalan PDF THINK TANK: CONSULTANT

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    Mubarik ho!!

    Tajurbakar team ka aik aur karnama!
     
  12. Xlvee01

    Xlvee01 FULL MEMBER

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    it's about time to privatize this crap company or change the management and give them a free hand to run the company. Tie their severance package with performance and keep your nose out of their business. However, to do that you need to make hard choices and as we know, that is never the Pakistani way.
     
  13. El Sidd

    El Sidd ELITE MEMBER

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    PIA will not be privatized no matter what happens......................

    A little clean up can get this in the right direction but PIA is a national asset.
     
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  14. t_for_talli

    t_for_talli FULL MEMBER

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    If this is true then it looks like national liability instead of national asset :P
     
  15. El Sidd

    El Sidd ELITE MEMBER

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    thanks for your concerns.
    do check back when its fixed