KARACHI, Aug 29: The commercial environment of the PIA and various issues confronting the national carrier came under review at a meeting of its board of directors here on Friday.

The board was briefed by Managing Director Capt Mohammed Aijaz Haroon on short- and long-term measures being taken by the management for the airline’s revival. The board approved the half-yearly accounts for January-June 2008 which showed a loss of Rs18 billion.

It noted that major contributory factor in the loss was a steep rise in oil prices which escalated the airline’s fuel bill and this could not be passed on to passengers in the form of higher fares due to market conditions.

Other contributory factor was unfavourable movement in the rupee-dollar rate which adversely affected the profitability while financing cost increased significantly owing to new fleet inductions as well as additional borrowing to finance the losses.

—APP