PIA Liability is Five Times More - NA Committee on Aviation Informed

[Abbas Ali]

On January 20, PIA informed National Assembly Standing Committee on Aviation about airline’s Business Plan. The committee was informed that year 2020 was the worst for aviation industry.

To increase revenue, PIA ended operating flights on loss-making routes and also reduced its staff by twenty percent through Voluntary Separation Scheme (VSS).

The committee was informed that PIA Business Plan was approved in year 2019 with new reforms and restructuring planned for the airline.

PIA had planned to increase the number of aircraft in airline's fleet from 31 to 45 in year 2019.

"Our liability is five times more and no institution in the world can run with five-time liability," PIA officials told the committee.

"If PIA earns 4.5 percent profit, even then it will take 78 years to repay the loan. However, Prime Minister’s Adviser on Institutions Reforms Dr. Ishrat Hussain has prepared a report on PIA" PIA officials said.

Abbas

[Amaad Lone]

PIA is just like Pakistan, dying under the weight of its debt.

How can you survive when a large part of your revenue is going for paying interest on your debts.

Every year when PIA was losing 40 or 50 billion rupees they simply asked the government for a hand out and they got it, without thinking that its DEBTand they will have to pay INTEREST on it it was easy money and everyone was happy. SHAHEEN AIR an airline of 18 planes was shut down because it owed a few billion to CAA and FBR. Well here is the mother ship with liabilities and loans of around 450 billion rupees, and now with a bankrupt government they cannot keep bailing out his favorite child.

Before PIA lost money because of an old fleet consuming a lot of fuel while oil was at 100 dollars a barrel. As the losses piled up PIA kept on borrowing and borrowing and borrowing, just like our country which now owes 37,000 billion rupees to foreign and local banks. The future of Pakistani ILLITERATE children has been mortgaged by our rulers of the past 12 years.

Now PIA is borrowing to pay off its interest and I feel that is the time when a body has had so much chemo therpy that it goes into a coma, and doctors put the body on life support to keep it alive.

PIA IS BEING KEPT ALIVE ARTIFICALLY.

No government wants to take the credit WE SHUT PIA DOWN. So the bleeding continues.

Our only hope is that the World Bank intervenes and shuts off the life support and PIA is scrapped.

The impounding of the 777 in Kuala Lumpur is final example of how poor the management is of PIA.

It is not the job of the government to run an airline, look at European British and American airlines, how many remain in state hands.

The government needs to make a plan on how to pay off PIA loans and liabilities and that and only that should be on the agenda.

I wonder how much are the 8 777s that PIA owns are worth???

[Amaad Lone]

Most loans taken by PIA are backed by the sovereign guarantees of the Government of Pakistan.

So the banks are secure as they will ask the governemnt to pay them off.

[ammad]

2020 was worst Air for Aviation all over the globe.

[Amaad Lone]

2020 was worst Air for Aviation all over the globe.

are you trying to imply that the reason PIA is in trouble is because of covid-19??????

PIA lost 40 billion plus in 2020 just like they lost in 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 and so on.

[Hassan777]

Even if the Government doesn't want to have "they closed PIA down" which unlikely for this government they have already shut down steel mills and done stuff that one would consider politically damaging.

Whatever the PMLn Government was their PIA 1, PIA 2 plan kind of made sense, I think this government should do that close PIA down start another airline with private investors with some elements from PIA like technical staff also make that actually function like a corporation, unlike PIA which only has corporation in its name, electing CEOs from inside will make them be responsible and accountable unlike when a CEO is dropped in by the government. This way the problem could be solved and the government doesn't have to get bashed for closing PIA down.

[Amaad Lone]

Even if the Government doesn't want to have "they closed PIA down" which unlikely for this government they have already shut down steel mills and done stuff that one would consider politically damaging.

Steel mill shut down in 2015. Salaries worth 40 billion rupees paid over 5 years for workers to sit home and relax.

This government actually made a plan to pay off the workers and sell the land of the steel mill.