KARACHI, Dec 26: Pakistan International Airlines Corp (PIAC) and the Citibank Pakistan on Thursday held a ceremony to mark the appointment of Citigroup as the guaranteed lender under the US Eximbank supported financing for the purchase of three new Boeing 777-200ERs.

PIA Managing Director Ahmed Saeed and the Citibank Pakistan’s Chief Executive and Country Corporate Officer Zubyr Soomro attended the ceremony held in a local hotel.

The purchase of these aircraft would be financed through a long- term (12 years) foreign currency loan backed by a guarantee of the United States Export-Import Bank (Eximbank) subject to requisite approvals.

Total value of the financing to be arranged under the Eximbank guarantee for the three aircraft is approximately $340 million.

Speaking on this occasion PIA chief Ahmed Saeed said when the present management took over the national flag carrier there was no money to pay salary to the staff.

However, after the measures taken, which included route restructuring, cost cutting steps and review of agreements with staff union without retrenchment of staff, the PIA had turned around.

“Its losses of Rs2 billion not only covered but this year the profit would be Rs2.4bn while next year it would be Rs3.5bn.”

He said with the acquisition of the new aircraft the airline would become a modern flag carrier of repute to be able to compete with all other world class airlines.

Terming it a great leap forward for PIA, he expressed gratitude for the President for his massive financial support needed for revamping the airline and now “we don’t need government’s financial support as PIA is now a going concern.”

Earlier, Citibank chief Zubyr Soomro traced the relationship of the bank with the PIA pointing out its financing in the acquisition of three DC-10s in 1973.