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The Pakistan International Airlines (PIA) suffered losses amounting to more than Rs146 billion during the last four years, according to a statement submitted by the Minister in Charge of the Aviation Division.
The details, submitted in response to a question by PPP MNA Shahida Rehmani during the National Assembly session on Monday, stated that after rising losses in 2013, the trend reversed in 2014 and 2015, with the airline incurring 27 per cent less losses.
However, the reply stated, a surge in losses in 2016 was expected due to increasing financial expenses resulting from PIA's acquisition of new aircraft on lease and payment of mark-up on legacy loans, among other things.
The national flag-carrier thus incurred estimated losses worth Rs37bn in 2016 alone.
According to the details provided by the minister, the airline incurred the following losses in past four years:
- 2013: 44.32 billion
- 2014: 32.22 billion
- 2015: 32.53 billion
- 2016: 36.95 billion (estimated)
The revelation comes as the national carrier is mulling suspending its flight operation for the United States from January next year, primarily because of ‘low traffic’.
The airline has stopped booking for its twice-a-week flights for New York from November onward. However, it will continue to operate its two weekly flights — Lahore-New York and Karachi-Lahore-New York — until Dec 31.
“The PIA is considering closing its flight operation for the US till the financial health of the organisation improves,” a senior official privy to the development had told Dawn on Saturday. “The national flag carrier is already facing acute financial crunch, therefore, it cannot operate on routes which are running in losses,” the official had said, adding that the PIA’s accumulative loss was over Rs300 billion.
When contacted, PIA spokesman Mashood Tajwar had said that the decision regarding continuing the flight operation for New York after December would be taken in the coming weeks.
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Comments (51) Closed
Oct 10, 2017 03:40pm
PIA's downfall started after 1971.
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Oct 10, 2017 03:41pm
I blame Nawaz Sharif and Isaq Dar for these losses and puting country in both political and economic crisis becuase of the incompetence and corrupt practices. Get their looted money back and spend on education, health care, security, justice and providing clean water and job opportunities to all!
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Oct 10, 2017 03:44pm
The airline must be privatized - losses are not sustainable.
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Oct 10, 2017 03:47pm
This is the actual development of Nawaz's era. We shall bury this traditional politics in GE-2018 INSHALLAH. You can't lure new generation by building metro trains. This is faux development.
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Oct 10, 2017 03:52pm
PIA is loosing because of their stupidity. Plane never leave on time. Over booking. over staff and bad service.
I am sure if administrator is good and Government donot interfere then this airline can be number one. Stop ripping your own air line. Proper management and you are on the way up agian.
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Oct 10, 2017 03:54pm
Country is better of spending this fund for education which will serve our country better in future, than providing welfare for PIA employees, military and politicians to travel around the world on tax payer or borrowed money.
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Oct 10, 2017 03:59pm
Astonishing how a once brilliant airline has declined so much. More VIP flights for the Sharif family, poor service so the the current Pms own airline can thrive and yet no one cares.
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Oct 10, 2017 04:00pm
This is the same airline who helped launch Emirates, Singapore airlines and now look where they are and where PIA is. This is what happens when corrupt officials use it as their own property at tax payers expense.
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Oct 10, 2017 04:00pm
Not to say anything about the theft of an airplane by the chief executive officer who must be having a good laugh at PIA's expense.
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Oct 10, 2017 04:00pm
Without proper diagnosis no amount of blood infusion can revive PIA. Last 50 years must be analyzed to see the real causes of PIA's decline.
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Oct 10, 2017 04:01pm
Lets have more VIP flights for the PM and his family, let the public pay pay and let them suffer, they vote for these corrupt officials.
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Oct 10, 2017 04:02pm
Only in Pakistan this can be allowed to happen and yet people keep voting for these corrupt officials, what a nation.
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Oct 10, 2017 04:05pm
The eyes of PM is focused on AIR BLUE not on PIA. PIA is suffering and will suffer if the current regime of PML N continue ruling over Pakistan. How our country will make progress if Orange/Yellow Train & Metro Bus Services like entertaining projects are launching on heavy cost of money of poor people payable each month as subsidy.
Please please please own Pakistan. This is our grace and respect. If Pakistan is disgracing how will we encounter with the prevailing & upcoming challenges.
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Oct 10, 2017 04:08pm
Sell PIA to PM's airblue.
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Oct 10, 2017 04:14pm
Its interesting to note there were a total of approx. 291 flights scheduled from Pakistan to Saudi Arabia during the Hajj season.. Out of the total amount of flights PIA were allocated 91 and Air Blue allocate 200.
I leave it to you imagination and guess work on who the owner of Air Blue is...
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Oct 10, 2017 04:16pm
My two cents towards fixing its financial woes:
1) Head hunt the #2 guy from Qantas, the airline has made a respectable profit this year after years of losses owed to Alan Joyce the CEO
2) Ditch the Americans (Boeing) or the Europeans (Airbus). Canadas bombardier is the way to go
3) Company to rebrand itself as a budget carrier like easyjet, Ryanair or Turkeys Pegasus
4) Close or limit local routes and cargo should be the main bread and butter on these routes
5) Outsource the reservation and ticketing system
6) Stop pick up and drop off of Pakistan based staff. In Australia you are to drive to the airport yourself and may park in subsidised parking areas
This is something to start with.
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Oct 10, 2017 04:17pm
Stop this corruption PIA airline send back the thousands & thousands of jiallas employeed by ppp mqm & pml to take care of only 23 planes.Stop looting the taxpayers money.Dismantle this mega loss airline & sell all its plans to develop health education justice & clean water system.Priv. airlines ar quite effecent to transport ppl in & ouside Pakistan.stop corruption.
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Oct 10, 2017 04:17pm
@M. Emad - PIA competes with Gulf Air on several fronts (unfortunately) ...... privatise it ASAP
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Oct 10, 2017 04:22pm
Govt should Add PIA in to CPEC, Once the Gwader Airport start operation that will be the Hub of Asia replace Dubai international
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Oct 10, 2017 04:23pm
PIA downfall started with politicization of all government institutions in 1970`s. One of the gifts of so called democracy and democratic governments.
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Oct 10, 2017 04:26pm
Like the Pakistan Steel Mills now PIA is in the dumps. While the disgraced PM has Ittefaq Foundries and Al Ahli Steels minting money the OSD PM runs Airblue with success.
That is how family ( National ) silver is victim to shameless corruption
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Oct 10, 2017 04:33pm
Lets have more metro trains, metro buses, lets have metro buses which fly.
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Oct 10, 2017 04:39pm
Where are Nawaz Sharif's claim?
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Oct 10, 2017 04:44pm
Why to blame Nawaz Sharif or any other person for the losses incured by PIA. Why people should fly by PIA, if one gets cheaper ticket and better service than PIA. Last week I purchased a ticket from New York to Islamabad almost half the price of what PIA was selling from New York. PIA is one of the expensive airlines from North America, and the cheapest one is Air China.
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Oct 10, 2017 04:44pm
Government revenue should not be wasted on an airline.
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Oct 10, 2017 04:47pm
PIA was once under the leadership of our present PM being the GM back then. He was so great that he allowed Boeing to sell airplanes to Singapore airline instead of PIA , it was PIA's turn to buy or sell the rights for profit.
He made the right decision and created a profit making airline called Air blue with that money
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Oct 10, 2017 04:49pm
PIA incurs losses worth over Rs146 billion in last 4 years... that money went into someone's pocket and now it will be used to buy the national carrier...
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Oct 10, 2017 04:50pm
@Imtiaz this is the whole idea behind it...
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Oct 10, 2017 04:52pm
I travel a lot back n forth NYC and have never seen a single empty seat . Low traffic is all bull talk
Flights to Toronto go full, flights to London go full
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Oct 10, 2017 04:52pm
@Anti-Corruption_Pakistani ... what is required is a collective effort...sir..At the end of the day, you are solely responsible for your success and your failure. And the sooner you realize that, you accept that, and integrate that into your work ethic, you will start being successful. As long as you blame others for the reason you aren't where you want to be, you will always be a failure.
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Oct 10, 2017 04:56pm
Entire cost of CPEC is less than total loss in 2 years. Still you think your country is going to prosper with that debt trap project.
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Oct 10, 2017 04:58pm
@Imtiaz 100% agreed, but who will do it? Many of the workers are tied to political leaders...
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Oct 10, 2017 05:02pm
naturally losses will occur when staff is hired basis on political influence. started from Rooti Kamra and makan slogan. airline business is very profitable if run as professional. Pakistani's are all over the world and every one like to travel on direct flight no one like to wait 4 -6 or up 5 10 hours at other airports. simple formula. service must be better
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Oct 10, 2017 05:03pm
interesting comments... The truth is rarely pure and never simple in Pakistan. In a time of deceit telling the truth is a revolutionary act... Truth is stranger than fiction in Pakistan, but it is because fiction is obliged to stick to possibilities; Truth isn't. Tell the truth, or someone will tell it for you... but who.. what we need gutsy, bold and brave investigative journalist... unfortunately some of them are being sold out. we have to eventually face the reality..which is more real when you face reality or when reality faces you... it is a question pops up every now and then without any answer...
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Oct 10, 2017 05:07pm
Another major failure of Corruption Mafia's government. Darkest decade for Pakistan under PPP and PML-N's governments.
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Oct 10, 2017 05:18pm
Unless and until this is depoliticized, it can not every earn a single penny. It is an expected outcome of a corrupt and disinterested people who runs this organization and this country. If our PM had any interest in addressing this issue, he could do it single-handedly. Take the prime example of Airblue which he owns, it never had a year with a loss since it would hurt his personal pocket. But int the case of the PIA, its okay if it's losing since we, the taxpayers, have to pay for it and not the PM.
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Oct 10, 2017 05:23pm
@Anti-Corruption_Pakistani , You can blame every body under the sun.
Pakistan failed in everything in last 70 years the country was formed with hatred of separation.
PIA has closed the USA route. Next close every route.
Look at export reserves only for next 3 months. By January or March 2018 there won't be money to pay for salaries to be paid to civil servants, to police, armed forces Govt Servants, imagine what will happen then? Still believe people will work for free to safe guard the cities & country?
Everything is collapsing and will collapse. Economy is in very bad shape. Pakistan is expected to go to IMF / World Bank for a Bail out package for servicing huge loan interest. They will definitely insist for the devaluation of Currency which will become Rs.150. No dollar reserves to import CNG/Petroleum products. Severe shortage. Petrol & Diesel will become so expensive mean Vegetables, Milk, your day to day commodities will hit the sky. Another Syria & Iraq in making.
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Oct 10, 2017 05:57pm
And the National Bank of Pakistan must be financing these losses
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Oct 10, 2017 06:20pm
@Sadiqamin once CPEC is ready, economy of gwadar will be more than that USA and Japan put togethet
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Oct 10, 2017 06:23pm
It’s best to liquidate PIA and move on. Qatar, Emirates are a way better option.
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Oct 10, 2017 06:36pm
@Shahid Imran khan?
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Oct 10, 2017 06:40pm
PIA is the worst air line I ever traveled on. The only people who travel on AIP are the elderly and passengers with young children for convenience of flying direct. back in May my wife with 5 month old baby were suppose to be on direct flight to Heatrow but instead it came through Milan. I had tpo wait 5 hours at Heathrow to collect them.
According to the on board hum-safar magazine Ousted Prime Minister praised the airline and its services. I would not recommend any one to travel by PIA.
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Oct 10, 2017 06:47pm
I flew New York-Karachi for years by PIA. Excellent Pilots,Food, and Service. I used to see so many foreigners
on PIA Flights.The Airline should be handed over to people with solid Marketing and Administration experience.
I am optimistic PIA will definitely re-emerge as an outstanding Airline.All International Airlines have gone through
the same phase that PIA is going through now.This is nothing new.
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Oct 10, 2017 07:06pm
The question is why is PIA incurring losses on sectors like New York where other airlines are profitable? PIA should be the first choice of Pakistani's returning or visiting home. The answer is that people have lost confidence in PIA, safety, service, reliability of service, seat availability are all huge factors for not booking with this airline. PIA has to make a comeback or bow out. There is no other option.
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Oct 10, 2017 07:11pm
Maybe it should increase the number of standing passengers. This way they would collect additional revenue.
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Oct 10, 2017 07:18pm
I think it is more then dead. I stayed in PIA hotel in Karachi last month while travelling to US, I was shocked no shower no toilet. I told them why are cheating yourselves
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Oct 10, 2017 07:34pm
If only there was some way to get the culprits among the present and past politicians who destroyed the pride of Pakistan, the PIA, by over employing people who were party members or who paid bribes to get the jobs for which they neither qualified nor was there a requirement for the same, we could not only salvage the carrier but also begin the process of accountability for the rest of the institutions where the same process was applied. The rulers think it is their birth right to give jobs to undeserving persons as that creates an obligation to return the favour to the party who got the job in the first place. Until such thinking is over we shall continue to be a world class rogue state.
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Oct 10, 2017 07:42pm
When a carrier like PIA is being used by VIP and PM's overseas trips with accompanying 150 people free of charge then no wonder there will be a loss in billions of rupees.
Since there is no separate travel budget for government officials and NS and his company take overseas trips as if they are going to Sialkot then PIA will have to go in loss.
Not bad mouthing about our government but is there any institution or project that is working fine or without cheatings? And we call ourselves caring for our public and country!!!
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Oct 10, 2017 08:18pm
Till 1980 PIA were an excellent Airline, still remember it's posters at Nairobi ,Kinshasa ,central African republic's at Rwanda &Burundi in the heart of of Africa praises for its services &punctuality there.The best thing for upgrading PIA handover it to Belgian .Dutch& Air France a joint consortium for three years u will see the difference.
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Oct 11, 2017 12:43am
We should tie the Each employee's Job-security to his/her efficiency, productivity,work-quality. Nobody in Pakistan should be guaranteed job unless you prove your worth.
And more importantly ,we must impart good quality 12-years modern education to our population on universal basis. We will have to resource it by increasing our tax payments and reduce defence expenses ,along with solid friendly relations with all countries.
Then we can have the systems,like Americans where --If you do not work well/ productively ; you need not come tomorrow: you are out. Then we won't have cases like P.I.A., Pakistan Steel Mills Ltd., Railways, etc.
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Oct 11, 2017 07:32am
@War & Peace but we will have inauguration ceremony for the orange train ........the ministers are running after the disqualified pm and don't care about the plight of Pakistan
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