PIA seeks Rs 18 billion to offset losses

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Abbas Ali
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PIA seeks Rs 18 billion to offset losses

Post by Abbas Ali »

BY ARIF RANA

ISLAMABAD (January 18 2007): Pakistan International Airlines (PIA) has approached to the government for seeking a Rs18 billion package for financial restructuring to offset losses it suffered in 2005 and 2006 due to high fuel prices. Its management on Wednesday held a press conference here to give details of its operations and steps taken to improve financial health.

It said PIA suffered loss of Rs 18 billion due to high fuel cost and it needed the government financial support to overcome its financial woes for smooth sailing now onward. Meanwhile, when the management was holding the press conference, PIA Chairman Tariq Kirmani was holding a meeting with Prime Minister Shaukat Aziz to apprise him of PIA financial woes.

The management told the newsmen that PIA operating expenditures rose to Rs 9,188 million in 2006 due to increase in the international fuel prices, claiming that steep increase in fuel prices started from early 2005 and reached an unprecedented level of $78 per barrel in September 2006, taking PIA fuel cost from Rs 18 billion in 2004 to approximately Rs 34 billion in 2006.

The management said it took a number of steps to mitigate the impact of fuel cost to improve operating results of the corporation such as introducing various operational restructuring steps.

Source: Business Recorder
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zerbaer
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Post by zerbaer »

Twilight zone ! The last management was able to sell its vision (hallucinations) to the ever ready trustees for Rs. 5 billion equity + Rs. 15 billion TFCs + $75 million equity to meet Exim bank as pre condition for B777 lease/purchase etc etc etc. This management wants Rs. 18 billion and reprofiling (rescheduling) of debts + increase the of liquidation rate/speed + outsource functions etc etc, in addition to all that is not considered worth discussing. Both managements have excelled at grounding their own aircraft and wet/dry leasing all known crap to make up the shortfall in capacity and still famously failed to meet their schedules by any stretch of imagination.

There is no order to the madness of this gang. They are faces their mothers would have difficult time loving.

Great recoveries!
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Abbas Ali
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Post by Abbas Ali »

Government to borrow funds for PIA

ISLAMABAD:
Chairman Pakistan International Airlines (PIA) Tariq Kirmani on Friday said the government has in principal approved a plan of borrowing Rs 18 billion for the airlines to balance its financial position, affected due to recent extraordinary oil price hike.

The process is in the final stages following which the organization would approach the commercial banks for the grant of loan, he said.

He said oil prices are on decreasing trends, the financial position of the organization is improving and hoped that during year 2007 PIA’s fiscal position would be much better.

Source: The News
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