ISLAMABAD – Minister Incharge for Aviation Ghulam Sarwar Khan on Fridayinformed the Senate that losses of Pakistan International Airlines (PIA)have decreased to Rs 11 billion from Rs 32 billion during 2019 as comparedto year 2018 owing to good governance and better management.
Responding to various supplementary questions during Question Hour, theMinister said the government took various pragmatic steps to overcome thedeficit and put it on right track.
He said more flights were being operated on commercially viable routes toenhance revenue.
He said PIA was passing through dire financial state but the presentgovernment was very keen to make it self-reliant. Efforts were underway toimprove the financial health of the Corporation by reducing its losses/deficit through various means and modes, he added.
It is worth mentioning that despite facing difficulties, PIACL has beenable to improve upon its performance with an objective of reduction inlosses.
He said the major reason behind PIA’ s losses was the increased financialcost due inherited legacy loans of previous governments and rising mark upsand debt servicing.
Moreover, significant increase in fuel prices and devaluation of currencyetc. had also contributed towards losses, he added.
The minister said the decrease in losses was being addressed at two levels,enhancing revenues and curtailment of costs.
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Revenue side was being addressed by improving market share throughrealigning sales team, manning stations on merit, aggressive salespromotion, improvement in product and services, focusing on revenuegeneration through ancillary sources, mounting new flights and expanding onexisting productive routes such as KSA and Gulf.
The cost curtailment side was being addressed through austerity measuresand cutting down on unnecessary administrative expenses, discipline andaccountability in functions to tap leakages and wastage, cutting down lossmaking routes and other ventures, route rationalization and shiftingoperational facilities suitable to PIA flight operations, he added.
To another question, the minister said $ 10 was being charged as airportcharges for Security and Infrastructure Development per InternationalDeparting Passenger. Continuous difficulties were being faced as result ofdevaluation of rupees, were causing inconvenience to passenger due todemand by airlines (difference of dollar rate) at the issuance of boardingpass, he added.
He said considering the complexities in charging amount in dollars, PCAAhas rationalized fixed rate of Airport Charges @ PKR 2,800/- effective fromJune 23, 2019.
To a question, the minister said the Annual Report (containing financialstatements) of Pakistan International Airlines, for the period endedDecember, 2017 was duly submitted to Securities and Exchange Commission ofPakistan, on August 2, 2019. Similarly, the Annual Report for the yearended December, 2018 was submitted to SECP on December 3, 2019, he added.
He said the SECP also de-listed PIA from the default list.
