PIA says number of reasons contributed to its losses
A senior official from Pakistan
International Airlines (PIA) informed a parliamentary committee on Friday that
the national carrier, along with other Pakistani airlines, has been suffering
losses due to two major factors: the permission granted to foreign airlines for
additional flights and the ongoing ban imposed by the European Union and the
United Kingdom on PIA flights.
During a meeting of the National
Assembly Standing Committee on Privatization's sub-committee, the PIA General
Manager was pressed by members about the long-standing financial difficulties
faced by the airline. Addressing the committee, the GM refuted claims that PIA
is overstaffed, clarifying that no new staff had been hired in the last 13
years.
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"PIA's staff costs are well
below industry standards. In fact, if all of our aircraft were operational, our
current workforce would be sufficient to meet the airline’s needs," the GM
stated. He also highlighted that PIA's inability to induct new aircraft
promptly, coupled with the failure to implement various restructuring plans,
has exacerbated the crisis.
The official emphasized that the
bans on flights to Europe and the UK have been a significant contributor to
PIA's financial struggles. Additionally, he noted that foreign airlines
receiving approvals to operate additional flights to multiple Pakistani cities
has negatively impacted PIA and other domestic airlines.
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Sehar Kamran, the convener of the
sub-committee, raised concerns about the failure of PIA's business model. Other
committee members, including Saba Sadiq, questioned the future of PIA employees
post-privatization and why foreign investors have been reluctant to engage with
the airline.
The committee also sought details on
when PIA started incurring losses, the reasons for the European and UK flight
bans, the implementation of the open skies policy, and the number of foreign
airlines granted permission for extra flights. They further inquired about the
process of acquiring aircraft on wet lease and the airline's restructuring
efforts over the years.
Source: Express
Tribune