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.