PIA seeks Rs23b bailout from government

[Peaceful Civilian]

Who is the chairman PIA?

CEO:
Air Vice Marshal Muhammad Amir Hayat
Secretary Aviation Division:
Capt. Saif Anjum (Retd)

 

[Jf Thunder]

Air Marshals have successfully run PIA to the ground.
Now they are going to try the same model on the entire country !

 

[fatman17]

View attachment 949236

ISLAMABAD:
The Pakistan International Airlines (PIA) has sought yet another bailout package worth Rs23 billion from the government to remain afloat – a demand that the interim set-up has not accepted yet and instead asked the national carrier’s management to prepare a viable restructuring plan.
The PIA management met with caretaker Finance Minister Dr Shamshad Akhtar this week and sought financing of Rs23 billion, according to people familiar with the discussions.
However, they added that the airline could not immediately win the bailout package.
The PIA is the country’s highest public sector loss-making entity and successive governments have been doling out money from the budget to keep it afloat.
Yet, there is no plan to install a professional management and the affairs of the PIA are handed over to air force officers, who do not have experience in running commercial airlines.
The PIA management informed the caretaker finance minister in the meeting that there was a financing gap of Rs23 billion.
However, the finance ministry asked it to arrange Rs13 billion funds from the banks against the available space of annual sovereign guarantees limit.
In the last fiscal year, the government had increased the limit of the sovereign guarantees to over Rs263 billion for taking more loans to maintain a steady position.
In case, the PIA fails to service its debt, the banks have the option of cashing these sovereign guarantees.

The ministry further told the national carrier that the rest of the Rs10 billion should also be arranged from the banks.
The PIA sought the finance minister’s intervention to acquire loans from the banks, as its balance sheet did not support more borrowings.
During the first three months of this year, there was a phenomenal increase of 170% in the PIA’s quarterly losses that jumped to Rs36.8 billion, according to its balance sheet.

The airlines’ cumulative losses have increased to Rs686.7 billion. Its current liabilities are Rs369 billion higher than its assets.
The finance minister instructed the airline to present a restructuring and privatisation plan to the federal cabinet.
The previous government had amended the PIA Act towards its fag end aimed at allowing the sale of its majority shares and transfer of management control to private buyers.
In 2016, parliament placed restrictions on the sale of more than 49% shares and management transfer -- a move that blocked the PIA’s privatisation process.
Sources said the finance minister asked the airline to prepare a viable business plan, which should also reflect the management’s own efforts instead of just relying on the federal government’s handouts.

https://tribune.com.pk/story/2432722/pia-seeks-rs23b-bailout-from-govt

I think PIA should be converted into a purely domestic airline. It's losing money on international routes due to its poor services. At least domestic flights are carrying full loads.

Need to cut down the bloated ground staff

 

[Mugen]

Anything else left for these harmkhor generls to destroy? Why people don't go after these haramis?

 

[Azadkashmir]

everything these dogs touch becomes pleath. sell it off it was used for drugs anyway pia goodbye.

 

[Jango]

It's fascinating how we can't do simple things which the world has been doing successfully for decades all over.

Pathetic.

The true downfall of PIA started from the PPP era and it has just continued.

 

[Thəorətic Muslim]

So this is what's supposed to be under the "Further Tax" column of the electricity bills.

 

[Olympus81]

Its a good time to sell off PIA and give a golden handshake to the affected employees.

 

[Peaceful Civilian]

So this is what's supposed to be under the "Further Tax" column of the electricity bills.

I've feeling they will try to recover money from some ghost taxes

 

[Falcon26]

Agreed, but changing ownership to private will not automatically make it a success. Most likely, it will quickly go out of business.

Who cares if it goes out of business or what happens to it once it’s privatized? It won’t be sucking government finances dry, that’s for sure, so it will be someone else’s headache, not the Pakistani taxpayer.

 

[kingQamaR]

PIA is a case of corruption by the politicians.
PIA helped start emeriates, qatar and saudia airlines, back in the 60s and 70s PIA was among the best in the world but due to it being nationalised and the politicians giving jobs for votes its gone down hill. I agree it wants investment and training could lead this airline to be back on top again. Being a British Pakistani i travel among uk and pakistan destinations regularly. So i have some experience. Like everything else in Pakistan once these CORRUPT KUNTS PPP&PMNL get their hands on something it’s ruined.

 

[epebble]

I am amazed anyone is willing to board the airline at all.

PIA bank accounts frozen over non-payment of FED, again

KARACHI: Due to the non-payment of Rs8 billion in Federal Excise Duty by Pakistan International Airlines , the Federal Board of Revenue on Thursday froze the national carrier's 13 bank...

www.thenews.com.pk

 

[PK784]

I am amazed anyone is willing to board the airline at all.

PIA bank accounts frozen over non-payment of FED, again

KARACHI: Due to the non-payment of Rs8 billion in Federal Excise Duty by Pakistan International Airlines , the Federal Board of Revenue on Thursday froze the national carrier's 13 bank...

www.thenews.com.pk

The crew enjoy international flights:

Jumping ship: Another PIA flight steward slips away in Canada

Muntazir Mehdi was assigned to a flight from Lahore to Toronto

www.samaaenglish.tv

 

[epebble]

They added that Boeing's component services programme and Airbus Industries' support package for aircraft repairs were also being affected because of which the incidents of the PIA planes suffering damage were increasing with each passing day.

PIA’s leased planes may be grounded | The Express Tribune

Leasing firms refuse to work with institutions in CCC credit-rated countries

tribune.com.pk

 

[Olympus81]

What happened to Roosevelt hotel?