pia_plane_670
File photo

ISLAMABAD, Feb 19: A special committee of the National Assembly noted here on Wednesday that losses suffered by the PIA were mainly due to mismanagement and lack of vision.

Chaired by the minister of state for Information, the committee termed PIA’s financial restructuring plan a non- starter.

The committee was informed that the PIA would be getting five Airbus 320 at $36.8 million, with financing from Bank of China.

The committee noted that the five planes which PIA intends to get on dry lease were costly than open market rates.

Shahid Khaqan Abbassi even offered brand new aircraft at lease to PIA at half the price.

He was responding to a presentation made by PIA CFO Aftab Ahmed regarding business plan for revival of PIA.

Aftab explained that they had to abide by the PPRA rules and they were not in a position to negotiate.

The members of the committee expressed dissatisfaction over the intended deal and said that PIA should go for a re- tendering or approach the PPRA with some realistic approach.

Aftab Ahmed said that PIA had calculated Rs108,000 for Haj travellers from North of the country and Rs94,000 for the travellers of South. However, the government approved Rs85,000 for North and Rs73,000 for the South.

Nosheen Saeed, of PML-Q and MQM’s Sheikh Salahuddin criticised the services of PIA.

Samsan Bukhari said that airlines make profit during Haj operations whereas PIA made a colossal loss of Rs40 billion during Haj 2012 which was strange.

Shahid Khaqan Abbassi said that at this fare Shaheen Airlines made a profit of Rs150 million in the Haj operation last year.The committee recommended that PIA needed to bring aircraft at wet lease during Haj to save cost and make the whole operation profitable.

About the business plan submitted by the PIA, the committee members clearly ruled that the airline was heading for another failed venture as higher rates would be paid for aircraft.

More From This Section

Women desks to be set up at all 500 KP police stations: CM

Pervez Khattak also announced the establishment of jury or jirga system at the model police stations.

IMF not satisfied with bill on ‘SBP autonomy’

IMF is expected to take up the issue with Pakistan during third quarterly review of the $6.78 billion bailout package.

Senate committee resolution seeks to lift Youtube ban

Committee on Human Rights urges govt to unblock the popular video-sharing website as soon as possible

Blast injures three in Chaman

The bomb was planted in a motorcycle parked close to the office of the Deputy Commissioner.


Comments are closed.

Comments (4)

haji
February 21, 2013 5:31 am
Rulers appoint top bosses in PIA to get their party workers and relatives employed . In this process merit is sent to hell . This has resulted in a large useless mass on PIA payroll . To make it a viable organisation this burdon should be shed first .
zain khan
February 20, 2013 9:18 pm
This is soo ironic.This shows the hypocrisy of ppl in national assembly. Who is Khaqan abbasi to criticise the deal of PIA who on the other hand being chairman of Airblue. He is no moral standing to criticize on this deal. On the other hand PIA signed the deal with International Transparency Pakistan who stands to be third party in all the deals to ensure fair deal. One can imagine their vision who are advocating to have wet lease.Wet lease is always expensive option.Why PIA should go for wet lease when they have experienced engineering department and human resource who can be trained to new aircrafts. I smell malify intent to destroy PIA just to benefit their own buisness.To get the facts straight.This hajj operation PIA achieved more success then shaheen.Shaheen flight were delayed more then 17 hrs where as PIA on avg not more then 3 at most.And rightly shaheen was penalised by saudia civil aviation of having soo much delayed flights.And PIA making gross profit from the last 6 months. And yet govt doesnt releases money for the fuel expenses.As PIA being Semi govt organization all the revenue generated is deposited in federal govt account. Then its govt responsiblity to release the funds that they are not bcoz they are busy enjoying public money.
haris
February 20, 2013 8:46 am
Why not Govt. firing the Directors, CFO and MD of PIA? What are they waiting for? And who is stopping them? If the corruption and mismanagement at this level happened in any other country they shall be immediately fired and all their perks and pensions would be withheld but oh! I forgot we are talking about Pakistan.
Arnold
February 20, 2013 11:51 am
That's ironic! The ruling parties place their men at the helm of affairs in PIA. They should know if those people have vision. In fact, that is not the selection criterion, at all. The ruling parties also place their slogan raisers in PIA as workers despite their utter incompetence and lack of drive to do the job. What else do they expect? Why are they blaming anyone but themselves?
Explore: Indian elections 2014
Explore: Indian elections 2014
How much do you know about Indian Elections?
How much do you know about Indian Elections?
Poll
From The Newspaper
Tweets