October 18, 2018 (MLN): The Pakistan International Airlines is enduring operational losses amounting to Rs.2 billion per month mainly by virtue of the rupee’s collapse last week coupled with a hike in fuel prices, says Aviation Secretary Mohammad Saqib Aziz.
The losses were also a result of overstaffing as it had 13,500 regular employees and some 3,500 daily wagers, which in turn led to financial constraints in terms of non-payment of salaries this month, he added.
The Senate committee met on Wednesday for a briefing on various issues concerning aviation, particularly PIA, complications in its new software which was causing errors during bookings, problems faced by parliamentarians and allegations of money laundering by PIA officers.
The secretary explained that a business plan to turn around the national flag carrier had been shared with the previous government and it was still under process.
PML-N Senator Mushahidullah Khan, who chaired the Senate standing committee, attributed PIA’s massive losses to malpractices in purchase of spare parts for its fleet.
About the financial constraints, the secretary explained that all earnings went straight into banks, which deduct the loans taken by PIA before releasing the remaining amount.
The committee also discussed Pakistan Stock Exchange’s recent decision to place PIA in the defaulter’s segment on account of failing to hold its Annual General Meeting and submitting its Annual Audited Accounts for the year ended December 2017.
However, the trading of PIA shares has not been suspended, Mr Aziz added
The meeting was told that five out of the 33 aircraft in PIA fleet had been grounded for maintenance.
