ISLAMABAD: A strategic business plan for the revival of Pakistan International Airlines (PIA) will be submitted to the Prime Minister in March, revealed Chief Executive Officer PIA Air Marshal Arshad Malik (retd) at a joint press conference on Tuesday, 15 January. Minister for Privatization and Aviation Division, Mian Muhammad Soomro and Special Assistant to the Prime Minister Iftikhar Durrani were also present there.
Malik pledged to prepare a five year plan for the airline in the next three months which will guarantee fortunes instead of losses. The airline has been incurring losses in the successive years causing a loss of Rs60 billion.
Arshad Malik said that a short-term plan would ensure smooth functioning of PIA while in the long run PIA would be revived on a sustainable basis over the next three to five years.
The PIA, he said, is utilizing PAF’s support to turn around the fortunes of the national flag carrier. He said that PIA is a national asset but regrettably the organization suffered losses due to flawed policies in the past.
He further revealed that PIA is currently suffering an operational loss of Rs. 3 billion per month. “We have removed 200 ghost employees drawing salaries up to Rs. 70,000 per month and action has also been taken against fake degree holders as per the directions of the Supreme Court,” he said.
He said that the PIA is paying charges to Civil Aviation Authority (CAA) in dollars and outstanding dues against PIA have swelled to Rs. 431 billion.
He said that PIA has started a plan to revive its guesthouses in Amsterdam, Tehran, Mumbai, Agra and New York and more would be revived with the assistance of the Foreign Office.
Malik said in the first phase, they have closed down seven loss making routes which were causing a loss of Rs 500 million monthly.
He said that the management has decided to suspend its flights on loss-making routes. In this respect, he said that it has been decided to suspend the flight to Tokyo next month due to heavy losses of Rs 300 million per month.
He said, “We have introduced some profit-making routes and more will be introduced by 15th of next month.”
Malik said that the management would induct six additional planes to meet the needs of pilgrims. He said under the short-term plan, it is PIA’s effort to carry out the Hajj operation in the best possible manner.
PIA in the last couple of months has taken several short term measures to overcome immediate losses. Several routes from Pakistan were still active despite incurring losses of Rs500 million each month. This is the kind of amount which certainly has an impact on the economy and the failure of authorities to recognize such practices only perpetuated the problem. These routes have now been closed and several new routes have been introduced which will guarantee profit for the airlines.
The CEO said that at this point, financial restructuring is key to the revenue generation scheme of the airline. PIA has provided employment to 18,000 people. This entire staff needs to be trained and reorganized in a manner which ensures great output and the improvement in their services.
PIA in the last couple of months has taken several short term measures to overcome immediate losses. Several routes from Pakistan were still active despite incurring losses of Rs500 million each month. This is the kind of amount which certainly has an impact on the economy and the failure of authorities to recognize such practices only perpetuated the problem. These routes have now been closed and several new routes have been introduced which will guarantee profit for the airlines.
