Financial condition of the flag carrier of Pakistan, Pakistan International Airlines (PIA) is currently at its lowest. The condition has stooped so low that the airline needs government funds to operate for even 1 day.
Pakistan International Airlines financial condition
Financial condition of Pakistan International Airlines is so low that the airline can not even operate for a single day without government funds. Losses have exceeded PKR 600 billion.
Condition is so bleak that the largest Full Service Carrier of Pakistan was even struggling to pay the navigational charges worth USD 50 million to Saudi Arabia. At one point, Saudi Arabia even barred Pakistan International Airlines from operating to the country airports after 30 June 2023.
The government is looking at developing a restructuring plan for the national flag carrier. The plan is to include a Boeing 777 aircraft on lease. This will take the carrier’s Boeing 777 fleet to 11. PIA has no option left, and hence, the government has decided to make a restructuring plan and divide a single airline into 3 to 4 companies.
The government is thinking to bring in specialists, who will draw this restructuring plan for Pakistan International Airlines.
A top official informed News International that PIA would close down on the day when the government stopped injecting money into the loss-making entity. Let me remind you that PIA has incurred losses worth PKR 600 billion.
Is privatization the way ahead?
Recently, they discussed in the Pakistan parliament how privatizing Pakistan International Airlines can help the flag carrier. The Pakistan government is already planning to outsource some of the major airports in Pakistan. They cited the example of Air India in the parliament, showing how a loss-making entity like Air India recently placed the 2nd largest order of 470 aircraft.
However, it was brought up in an official meeting that PIA could not be privatised. This was because of the most recent statute passed by the parliament in 2016. The airline had been transformed from a statutory organisation into a joint stock company.
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Source : ANI News