PIA needs liquidity to keep afloat says MD

Pakistan International Airlines (PIA) cannot improve until liquidity is injected into this national flag carrier.

However, various rectifying steps have been taken including introducing new operational plans to make PIA a profitable organization, said Managing Director PIA Ejaz Haroon in a meeting with members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) here at Federation House on Monday.

PIA’s Managing Director, in his presentation on the airlines financial standing since 2001, explained the causes leading to PIA losses. High fuel cost, big amount of interest on non- producing loans and huge bills of aircraft handling were described the main factors. Many companies have been granted licenses here for handling our aircrafts, but he regretted, they have not the required skilled core and standard machinery and equipment.

He said PIA has excessively used aircrafts in the world. Civil Aviation Authority (CAA) has sent a letter to PIA authorities informing that CAA was compelled to apply more checks on the national airlines because of bad condition of majority of aircrafts.

Ejaz Haroon said with introduction of strong checks in different areas of the airlines and revisiting the policies the losses amounting to Rs 36.3 billion in 2008 was reduced to Rs 6 billion next year.

The Managing Director PIA also gave presentation on discussions held between PIA and Turkish Airlines to share passengers and cargo on different international routes. PIA and the country would greatly benefit from this arrangement, he said.

“Both the airlines would be on win-win position,” he said adding that under this arrangement we would PIA 100 destinations and earn dollars 35 billion per annul.