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PIA seeks to buy 12 A-320 aircraft
Submitted by News Editor1 on Wed, 2011-05-11 12:41
KARACHI: Pakistan International Airlines (PIA) has asked the government for its sovereign guarantee to acquire 12 Airbus A-320 aircraft to expand its fleet, sources said yesterday.
The national flag carrier would return back as many as six A-310 airplanes, which the PIA had acquired from a middleman and acquire 12 A-320 planes on dry lease from the French aircraft manufacturer, the sources said. PIA had already gained the presidential nod in this regard, they said.
However, the financial consideration to be paid against the aircraft could not be known as the plan is in initial stages.
The corporations management commenced work on the development of a comprehensive business restructuring and turnaround plan to set in place the right strategies and controls needed to bring it back on the path of profitable operations, the sources said.
The turnaround plan and five-year financial model was approved by the board of directors and the Ministry of Defence.
The plan has also been endorsed by the sub-committee of the National Assemblys Standing Committee on Defence, which concurs with the recommendations contained in the plan.
Furthermore, presentations had been made in respect of the business plan in meetings with the representatives of the Ministry of Finance, which were chaired by Finance Minister Dr Abdul Hafeez Shaikh.
As envisaged in the business plan, the corporation has devised a turnaround strategy, which entails operational restructuring and assumes GoPs support in terms of providing necessary funding for recapitalisation, which includes, among other measures, extending existing guarantees and issuance of new guarantees to various financial institutions by the government, the sources said.
As a result of presentations, the Economic Coordination Committee (ECC) of the Cabinet in March accorded approval for extension in the existing guarantees issued to various financial institutions by the government for $101mn and also allowed issuance of new guarantees of $59mn.
The PIA management believes that the business plan would be approved and accordingly significant financial support would be provided to the corporation in the coming years to ensure its long-term sustainability, they said.
Submitted by News Editor1 on Wed, 2011-05-11 12:41
KARACHI: Pakistan International Airlines (PIA) has asked the government for its sovereign guarantee to acquire 12 Airbus A-320 aircraft to expand its fleet, sources said yesterday.
The national flag carrier would return back as many as six A-310 airplanes, which the PIA had acquired from a middleman and acquire 12 A-320 planes on dry lease from the French aircraft manufacturer, the sources said. PIA had already gained the presidential nod in this regard, they said.
However, the financial consideration to be paid against the aircraft could not be known as the plan is in initial stages.
The corporations management commenced work on the development of a comprehensive business restructuring and turnaround plan to set in place the right strategies and controls needed to bring it back on the path of profitable operations, the sources said.
The turnaround plan and five-year financial model was approved by the board of directors and the Ministry of Defence.
The plan has also been endorsed by the sub-committee of the National Assemblys Standing Committee on Defence, which concurs with the recommendations contained in the plan.
Furthermore, presentations had been made in respect of the business plan in meetings with the representatives of the Ministry of Finance, which were chaired by Finance Minister Dr Abdul Hafeez Shaikh.
As envisaged in the business plan, the corporation has devised a turnaround strategy, which entails operational restructuring and assumes GoPs support in terms of providing necessary funding for recapitalisation, which includes, among other measures, extending existing guarantees and issuance of new guarantees to various financial institutions by the government, the sources said.
As a result of presentations, the Economic Coordination Committee (ECC) of the Cabinet in March accorded approval for extension in the existing guarantees issued to various financial institutions by the government for $101mn and also allowed issuance of new guarantees of $59mn.
The PIA management believes that the business plan would be approved and accordingly significant financial support would be provided to the corporation in the coming years to ensure its long-term sustainability, they said.
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