PIA financial restructuring in final stages

[Azure]

PIA financial restructuring in final stages
Airline CEO says efforts for improvement have started yielding results

LAHORE:
Pakistan International Airlines (PIA) Chief Executive Officer Air Marshal Arshad Malik has assured that the financial restructuring of the national flag carrier is well on its way and things would be finalised soon.
“We do have a few options to settle the mounting debt issue of PIA,” Malik said during his visit to the Lahore Chamber of Commerce and Industries (LCCI) on Thursday.
“One of the options is to issue investment bonds; the other is debt-equity swap,” he said, adding, “The third option we have is that the government can take some of PIA’s assets against the loans to clear our balance sheet, which is already guaranteed by the government.”
Malik stated that a final meeting is expected to be held within 10 days and it is expected that this issue will be settled.
The CEO said that despite the Covid-19 outbreak and other challenges, efforts for improvement have started yielding results. He highlighted that PIA’s revenue has increased and shown gross profit during the months of September and October.
Shedding light on the losses incurred, he said the open sky policy has caused huge loss to PIA. “However, financial restructuring of PIA is well on the way and would be finalised soon,” he added.
The official further said the cargo space utilisation of the airline has been increased and Boeing 777 aircraft can be used for cargo transportation.
Malik said PIA is focusing on profitable routes based on demand prospects and commercial viability. He went on to say that unlike the past, all business decisions were now made collectively and there was no political intervention.
The CEO said that no planning or upgrade has been made in the past for in-flight entertainment and passengers’ comfort onboard and mentioned that a system is being planned for convenience of passengers during long flights.
Talking about expanding international routes, Malik said that PIA is almost there for New York and Chicago route, but due to Covid-19 and licensing issue, they are facing some delay.
He further added that the company is also in talks with China, seeking permission for some other major cities like Shanghai and Guangzhou. “Currently, Chinese authorities are allowing PIA to fly to Beijing only,” he pointed out.
Highlighting the fake license issue, the CEO said, “This is the duty of the regulator to fix such issues, we as an operator cannot fix such issues, however, we do highlight such matters.”

PIA financial restructuring in final stages | The Express Tribune

Airline CEO says efforts for improvement have started yielding results

tribune.com.pk

 

[FuturePAF]

PIA also needs an international organization to certify its Pilots and maintenance staff are actually trained and certified to fly the planes, or else many in the flying public will refuse to use PIA, after what happened in Karachi.

 

[fitpOsitive]

PIA should take back all routes. From every airport of world to every operational airport of Pakistan. Simple.

 

[RoadRunner401]

PML_N Gave all the rights to Middle Eastern airlines for free until those are taken back and priority is given to local carriers plus PIA starts to pay back its debt, own its own there is no financial recovery.

 

[FuturePAF]

PIA should take back all routes. From every airport of world to every operational airport of Pakistan. Simple.

That will just monopolize the industry, without any mechanism to force PIA to reach international standards. We don’t want PIA to become like North Korea’s airline.

 

[fitpOsitive]

PIA should take back all routes. From every airport of world to every operational airport of Pakistan. Simple.

That will just monopolize the industry, without any mechanism to force PIA to reach international standards. We don’t want PIA to become like North Korea’s airline.

No it will not.

 

[FuturePAF]

PIA should take back all routes. From every airport of world to every operational airport of Pakistan. Simple.

No it will not.

I hope your right. I want to do a non-stop flight from New York to Multan, but if that’s not possible/profitable, a Direct non-stop New York to Lahore and even more importantly a Lahore to New York Direct flight (which no other airline can offer), without any layovers.

Last time I flew with them they stole all my checked luggage, and made the process to recover it impossible, I never got it back in the end.

Even more then that I don’t feel PIA is a safe airline for me and my family. It’s a matter of trust. When it’s revealed a third of the pilots are not fully qualified, it doesn’t give me confidence in the airlines professionalism.

 

[Falcon26]

Why even waste a single dollar on this defunct organization? What public good is advanced by supporting billions of dollars each year on defunct organizations that have failed to do a job the private sectors has been doing quite efficiently for years?

Pakistan wastes as much money, each year, on such defunct organizations as it does on the defense budget. Ponder on that.

And people complain about lack of money for critical services like education and health.

 

[Invicta]

They should just bury PIA for good and start a new airline, I am going to Pakistan in February and flying BA direct to Lahore from Heathrow. PIA in its current form can in no way compete with BA/Virgin or other Gulf airlines.

The deadweight staff and political appointees in PIA must be removed - this is the only chance to do it.

 

[FuturePAF]

Why even waste a single dollar on this defunct organization? What public good is advanced by supporting billions of dollars each year on defunct organizations that have failed to do a job the private sectors has been doing quite efficiently for years?

Pakistan wastes as much money, each year, on such defunct organizations as it does on the defense budget. Ponder on that.

And people complain about lack of money for critical services like education and health.

While it is hard to see good money go to waste, there is hope if the airline is reformed and run on the strictest and most professional basis. It should only be run on profitable routes.

 

[Imran Khan]

close this airline before its eat more 100s of billions