PIA has cut losses of Rs13.5bn this year: aviation adviser
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ISLAMABAD: Adviser to Prime Minister on Aviation Affairs Shujaat Azeem said on Friday that the annual loss of Pakistan International Airline (PIA) had been reduced to Rs18 billion from Rs31.5 billion during the previous year.
He said the PIA was also paying Rs3.29 billion interest on legacy loans that were taken in 1992.
Speaking to reporters in the federal capital, the premier's adviser said that 10 more narrow-body airbuses and five aircraft manufactured by French-Italian manufacturer ATR would be inducted in PIA by the end of December this year.
Induction of more aircraft would help boost PIA's performance which would assist in generating more revenue, Azeem said.
Praising the initiatives for the improvement of the national carrier, he said the government was working towards introducing a new aviation policy to discourage corruption within PIA.
PIA had received delivery of its eight A-320 aircraft acquired on long-term dry lease from General Electric, Azeem added.
He also said that the PIA has 25 operational airbuses and 11 ATR aircraft at present and increasing the number would also help overcome its financial difficulties.
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Comments (27) Closed
Oct 31, 2014 04:21pm
PIA need to reduce its workers if want to survive, get rid of political appointments
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Oct 31, 2014 04:31pm
As you don't pay your bills for fuels, it is obvious your loses will come down.
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Oct 31, 2014 04:34pm
Privatization is the only answer.
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Oct 31, 2014 04:41pm
PIA has 9 777 as well and number of A310 is 6 with additional 6 A320 it will be only 12 airbus in fleet not 25. Numbers need correction but no one check in Pakistan whats reported in media.
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Oct 31, 2014 04:46pm
PIA needs new aircrafts, just recently japan introduced its MJR commercial airliner, cost 40 million, china has small commercial aircraft offering for 20 million. I think introduction of cheaper more fuel efficient aircrafts in place of expensive Boeing or Airbus will
help immensely. Plus other structural reforms will also help.
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Oct 31, 2014 05:36pm
This claim is totally misleading. Adviser (one of the cronies) should be telling us reduction in the operating losses and increase in revenues and how much of the effect is taken of oil price reductions and what cost cutting measures have been taken.
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Oct 31, 2014 05:39pm
Mr. Azeem, please advise this nation about your share in the Islamabad Airport scam? Must be in billions of rupees.
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Oct 31, 2014 06:10pm
hahaha by not paying fuel charges to saudi and charges for airspace of Turkmenistan
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Oct 31, 2014 06:11pm
These may be good short-term measures. The only sustainable long term solution lies in privatization, where the only responsibility of the management is to the shareholders. That is get them the biggest return on their investment.
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Oct 31, 2014 06:27pm
''V PRAKASH
about 2 hours ago
As you don't pay your bills for fuels, it is obvious your loses will come down.''
Payables has nothing to do with losses,
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Oct 31, 2014 06:38pm
No business no loss.
Safe play.
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Oct 31, 2014 06:47pm
I am pretty sure those PMLN and PPP supporters are trying to find ways to blame these losses on IK. This shows their governance. This is why majority says, do not discard IK before you even try him. We have already tried Nawaz and Bhuttos. what they have given to the country in last 65 years. Has majority's life got better? Article also mentions interest are being paid on loans taken out in 1992. That was like 22 years ago. Who was in power that time?
i do not understand why people fail to see that.
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Oct 31, 2014 07:07pm
cut the staff in half, simply make them work 40hr/week without any break... They aren't taking their work seriously at the moment.
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Oct 31, 2014 07:11pm
Please give details of anti corruption steps u took either in in the media or National Assembly. Pls. clarifiy the aircraft vs employees ratio.
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Oct 31, 2014 07:16pm
@Pakistani Please ready carefully, they are reporting what shujaat azeem said and not what they think - there is a difference. Stop being critical. And by the way thanks for sharing the numbers. I will certainly verify them ;-)
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Oct 31, 2014 07:23pm
Another news item of today is that PIA has been warned to clear its debt by Turkmanistan. Is that how PIA is reducing its losses?.
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Oct 31, 2014 07:52pm
A farce report, all public sector institutions find ways of fudging accounts and distorting the truth. Medical, fuel, airspace, electricity, gas and other bills including certain allowances wouldnt have been paid by pia. What do you get lower losses.
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Oct 31, 2014 08:15pm
Privatisation of this white elephant, PIA, is long due. There was a lot of apprehensions about PTCL privatisation but now people get good service and government doesn't have to pay our money to them anymore.
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Oct 31, 2014 08:43pm
He is lying. These advisers have not such capability. They are only to appease the PM. I don't believe him. There should be an inquiry if he is hiding the facts.
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Oct 31, 2014 09:43pm
Did you calculate the unpaid bills for the petrol and airspace usage bills as outstanding accounts payable part of this statement? Or is that you are conveniently forgetting those in saying how much loss was reduced?
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Oct 31, 2014 10:43pm
PIA is a cesspit of corruption and inefficiency.....and WILL NEVER BE PUT RIGHT. It has to be sold or shut down.......but NO government wants to do the right thing.
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Oct 31, 2014 10:57pm
Whats the big deal in privatizing this white elephant - just create a dummy corp for these political employment or even better just send them a check from the PM (OR Kings) treasury monthly.
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Nov 01, 2014 02:21am
manuavering books
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Nov 01, 2014 04:07am
He did not give daetails of these cuts. May be he is including the money he received by selling PIA assets. They are all LIARS. Cant trust any one of them.
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Nov 01, 2014 05:24am
As if PIA has maDE a profit in billions
what a joke . Any serious Administrative authority would fire the upper management to report such Great progress
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Nov 01, 2014 07:34am
don't worry we have a viable plan for building metro bus service routes stretching to all countries ! Seriously ! Calculate the opportunity cost of metro of Islamabad. And imagine what if we would have spent that money on our airlines the revenue stream had been beyond imagination as well as revival of our national airline.
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Nov 01, 2014 07:45am
Privatization is the only sure way of success for any commercial organization. That gives it accountability and agility, the ability to take fast actions.
By a big proportion, most government owned/controlled airlines are continuously in the red and taking away tax payers/public's precious money. Are they also negatively effecting growth of the country' economy by stunting its aviation infrastructure and therefore overall growth?
A quick path to privitization is the way to go for PIA At the same encourage other private airlines to come and fill in the gap.
I am delighted that there similar comments in that direction!
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