October 30, 2001	Tuesday	Shaba'an 12, 1422

Please Visit our Sponsor (Ads open in separate window)

LAHORE, Oct 29: The Rs9.29 billion losses incurred by the PIA till Dec 31, 2000, wiped out its share capital of Rs3.88 billion and reserves amounting to Rs4.3 billion and the airline’s current liabilities exceed its asset by over Rs 12 billion, the Lahore High Court was informed on Monday.

“The airline is struggling to survive in a hostile environment and efforts are being made not only to keep it afloat but make it a profitable concern once again,” the PIA said in its reply to a writ petition moved by Advocate M.D Tahir against the sale of its hotels abroad.

The PIAC said the decision to disinvest the hotels was taken as far back as 1981. It was a corporate decision taken in the interest of the airline, the reply filed by Advocate Anwar Kamal said. The federal government has 58 per cent shares in the airline and is represented by nine directors on an 11-member board, it explained.

The hotels are not owned by the PIAC but by PIA-Investment Limited, in which Prince Faisal of Saudi Arabia and the PIA-IL have 50 per cent shares each, it clarified. Talks are in progress with the prince for disinvestment, the reply said, and added that “privatization is the order of the day” and in PIA’s case, it was essential to curtail its losses as the hotels were all losing concerns.