Friday, 29 June 2018

Improving PIA - not possible

The Supreme Court in Islamabad, Pakistan heard on Friday that there was zero chance of seeing immediate improvements to the national carrier, Pakistan International Airlines, as they were simply not possible.

The court was hearing the case for the airlines' privatisation, which learnt that the economic and political situation in Pakistan currently had had an effect on the airlines' operations. Losses on most routes, excess staff were considered to be the primary causes of the huge losses racked up by the airline. The airline's total loss has reached Rs406 billion, with a total of just Rs111 billion assets. 

According to PIA administrators, most of the carrier's aircraft have been grounded since last year, with political interference and a largely demotivated staff have all added to the challenges in running the company.  The court was advised that PIA's current business model would not be able to turn the airline around and make it profitable. Inexperienced staff, without the required expertise and workers unions, had also had a detrimental effect on the airlines' chances of recovery.  

The apex hearing continues.