PIA facing losses of Rs 5.6bn per month
KARACHI: PIA is incurring losses of Rs 5.6 billion per month while its total liabilities have crossed the Rs 300 billion mark, PIA management informed senate on Wednesday.
As per the statement by PIA management , “These expenses include over Rs 4.4 billion in loan and mark-up repayments, over Rs 2.6 billion in fuel and over Rs 1.6 billion in salaries. The total liability of Rs 300 billion consists of Rs 186 billion of bank loans, Rs 40 billion of Civil Aviation Authority charges/ dues, Rs 13. 5 billion of charges owed to the Pakistan State Oil and over Rs 4.5 billion owed to the Federal Bureau of Revenue.”
The three- member panel which was setup to review the PIA’s performance was headed by Syed Muzaffar Hussain Shah of the Pakistan Muslim League-Functional, General Abdul Qayoom of the PML-Nawaz and Farhatullah Babar of the Pakistan People’s Party.
PIA acting CEO Bernd Hildenbrand said that poor aviation policy had resulted in the dismal financial performance of the airline. He added that the PIA had an old fleet and was facing difficulties in competing with airlines with modern aircrafts such as Emirates, Etihad, Qatar Airways.
He added that even under these conditions, PIA had managed to get more passengers and generate more revenue than the previous year.