ISLAMABAD, Jan 23: President Asif Ali Zardari has advised the government to consider making strategic investments in building fuel storage capacity and making advance purchase of fuel oil to help PIA overcome its financial difficulties.

He was speaking at a meeting held to discuss problems of Pakistan International Airlines. The meeting was attended by Prime Minister Yousuf Raza Gilani, Minister for Defence Chaudhry Ahmed Mukhtar, Planning Commission’s Deputy Chairman Sardar Assef Ahmed Ali, PIA’s managing director Capt Mohammad Ijaz Haroon and other officials.

Mr Zardari said the government could consider hiring consultants to suggest workable plans for strategic investments in PIA through public-private partnership. He said the fund-raising efforts for the airline required innovative and non-traditional solutions because the problem was too big for normal bureaucratic procedures and periodic bailouts.

The president also advised the government to consider developing the Roosevelt Hotel in New York owned by PIA as a source of permanent income.

He said PIA could be salvaged through an ‘out of box’ solution and advised the government to arrange meetings of experts on evolving a workable business plan.

Capt Mohammad Ijaz Haroon said the average age of the airline’s aircraft was 13 years but more than half of its aeroplanes were more than 23 years old.

He said the airline industry worldwide had suffered huge setbacks because of fuel prices. The projected profit of $9.6 billion of the industry in June, 2007, turned into a loss of over $6 billion by June, 2008, he said.

The meeting was informed that although fuel prices had come down, PIA still faced a difficult situation due to several other problems. Poor governance in the past, ageing fleet, capacity glut, rupee depreciation and geopolitical situation posed immense challenges to the airline. However, the airline is striving to improve the equation between revenues and costs during 2009.

A 14 per cent increase in capacity has been planned for revenue growth.

Capt Haroon said the facility of online booking had now been extended to more destinations and it would be expanded further. The reservation system had also been streamlined.

The prime minister observed that PIA’s problems could not be resolved through periodic injections of funds and a fresh look was needed to work out a lasting solution.

Mr Gilani said he would hold a separate meeting with the defence minister and his adviser for finance and relevant officials to sort out PIA’s problems.