The beleaguered foreign chief executive of Pakistan International Airlines (PIA) is calling for help from the government in fighting a price war with deep-pocketed Gulf airlines, including putting restrictions on the number of flights they can operate in its home market.

German chief executive Bernd Hildenbrand was earlier this month put on the Exit Control List, effectively barring him from leaving the country, while the government investigates the cost of an aircraft leasing deal.

Hildenbrand, who denies any wrongdoing, said the majority state-owned airline is losing about Rs3.1bn per month while market share continues to rise for the likes of Emirates Airlines and its Abu Dhabi-based neighbour Etihad Airlines, attracted by the potential growth in demand in a nation of nearly 200 million people.

"For us, it is very difficult to compete with the emirates," Hildenbrand said, conceding that Middle Eastern-carriers offered better and cheaper services, whereas PIA is struggling to modernise its 35-plane fleet due to a lack of funds.

PIA therefore needs help from the government, including possibly putting "some limitations on the open-sky policy", he said, alluding to the aviation's service agreements with other countries.

In comparison, Hildenbrand said the bilateral trade agreements of some other countries and blocs were more restrictive, citing Canada, which has limited the number of flights for Etihad and Emirates. "Even European countries don't open up completely," he added.

"I am not against competition, but unlimited competition is also not possible."

Hildenbrand said PIA's total debt stood at Rs186bn at the end of 2016 and has appealed to the authorities to help nurse the airline back to profitability.

However, it would take at least three years to return the company to profitability and to truly transform PIA's fortunes would take even longer.

"What went wrong in 25 years you don't change in half a year. Impossible," he said.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Rigging claims
Updated 04 May, 2024

Rigging claims

The PTI’s allegations are not new; most elections in Pakistan have been controversial, and it is almost a given that results will be challenged by the losing side.
Gaza’s wasteland
04 May, 2024

Gaza’s wasteland

SINCE the start of hostilities on Oct 7, Israel has put in ceaseless efforts to depopulate Gaza, and make the Strip...
Housing scams
04 May, 2024

Housing scams

THE story of illegal housing schemes in Punjab is the story of greed, corruption and plunder. Major players in these...
Under siege
Updated 03 May, 2024

Under siege

Whether through direct censorship, withholding advertising, harassment or violence, the press in Pakistan navigates a hazardous terrain.
Meddlesome ways
03 May, 2024

Meddlesome ways

AFTER this week’s proceedings in the so-called ‘meddling case’, it appears that the majority of judges...
Mass transit mess
03 May, 2024

Mass transit mess

THAT Karachi — one of the world’s largest megacities — does not have a mass transit system worth the name is ...