PIA paid London staff for 5 years despite having no flights to UK
The Auditor General of Pakistan (AGP) has disclosed that Pakistan International Airlines (PIA) continued to employ 35 staff members at its dormant London station, even though there have been no flights or operations from the station for the past five years.
According to the AGP report, this oversight led to a financial loss of Rs 210 million to the national exchequer.
The audit reveals that PIA’s suspension of flights to the United Kingdom and Europe followed a ban by the European Union Aviation Safety Agency (EASA). Despite this, the airline maintained a workforce at the inactive London station, costing Rs 210 million in unnecessary expenses.
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The report notes that under the Public Sector Companies Rules of 2013, it is the responsibility of the board to make decisions that serve the company’s interests. The PIA management was informed of the situation in September 2024 but has not responded to the concerns raised. Additionally, despite repeated reminders, the Departmental Accounts Committee failed to hold a meeting on the matter in January 2025.
The AGP report has urged PIA’s administration to investigate this issue immediately.
This revelation follows a previous AGP report highlighting PIA’s financial losses between 2008 and 2017, amounting to over Rs 9 billion due to the unchecked distribution of free and heavily discounted tickets during the tenures of the PPP and PML-N governments. The report mentioned that 258,990 passengers flew on “zero fare” tickets between 2011 and 2016, resulting in a loss of Rs 5.55 billion for the national carrier.
Meanwhile, PIA’s plans to launch direct flights from Pakistan to the UK have encountered delays. The Civil Aviation Authority (CAA) has failed to secure the necessary Third Country Operator (TCO) permit from British authorities, preventing the airline from operating flights despite the UK lifting its ban on Pakistani airlines in July.
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Though the UK has removed the ban, PIA officials have confirmed that flights cannot commence without the required TCO approval, and as of yet, the clearance has not been granted. UK High Commissioner Jane Marriott, who flew on a PIA domestic flight from Islamabad to Karachi following the ban’s lifting, had expressed interest in flying on the first direct flight to Manchester. However, the launch of this flight remains delayed.
Source: Hum English