PIA faces huge loss over flights ban to EU
The National Assembly (NA) on Wednesday was informed that the flight operation ban on Pakistan International Airlines (PIA) in the European sector had cost the national carrier Rs280 million.
The airline, however, managed to make a profit of Rs520 million on flights for the UK.
During the Question Hour in the lower house of parliament, Aviation Minister Ghulam Sarwar Khan in a written reply said that the air crash in Karachi in May this year damaged PIA’s reputation, leading to increase in the premium cost and drop in the number of passengers.
PIA’s revenue on European sectors reached Rs1.41 billion against the expenses of Rs1.69 billion, while the losses were incurred during the months of July and August.
“The UK sector generated Rs5.81 billion in revenues against the expenses of Rs5.31 billion,” he wrote, adding that services of a Maltese company had been acquired for flights between Pakistan and the UK.
Furthermore, the crash had caused premium cost to rise more than $5 million whereas the compensation to the families of the victims would be paid by the insurance company.