LAHORE: Privatisation Minister Abdul Aleem Khan on Sunday termed the national flag carrier “a white elephant”, claiming it had caused a loss of Rs830 billion to the national exchequer, so far.
Speaking at a footwear exhibition in Lahore, he said that Pakistan International Airlines (PIA) was a burden on the government, but was quick to point out that the process of its privatisation was progressing smoothly.
“Private firms are taking interest in the privatisation of PIA,” he said. In reply to a question, Mr Khan said that six Pakistani companies interested in PIA have joint ventures with international firms from Malaysia, Turkiye and UAE. He alluded to Oct 1 as being a key date, saying that once the process was completed, Pakistanis would get an airline of international standards.
He praised the Pakistan Footwear Association for developing good ties with global brands and said that increasing the number of trade officers in foreign missions would help the country establish connections in terms of business-to-business activities.
https://www.dawn.com/news/1851713/white ... aleem-khan
White elephant’ PIA has cost national kitty Rs830bn, says Aleem Khan
-
arshad.altaf
- Registered Member
- Posts: 801
- Joined: Fri Dec 25, 2015 8:24 am
-
Amaad Lone
- Registered Member
- Posts: 3094
- Joined: Thu Aug 05, 2004 7:10 pm
- Location: Lahore
Re: White elephant’ PIA has cost national kitty Rs830bn, says Aleem Khan
830 billion rupees since 2004 or around 20 years.
How much of this is due to blunders by management (appointed by each government)??
For example PIA Premier launched during PML tenure cost the airline 2 billion rupees within a few months as the lease rate of the single A330-300 could not be recovered from ticket sales.
The operation of fuel heavy 747-300s until 2013-14 even when oil hit 100 dollars a barrel and PIA kept on operating A310-300s 737-300s and 747-300s with most airlines switching to A330s 777s and A320s.
Losses financed by a blank check from the governments until the debt piled up so much that 50% of the revenue was going into financing interest payments.
I think PIA finances should be audited and see what PIA paid for goods and services versus what other airlines were paying.
PIA was raped by its management that was put it in place by PPP and PML governments.
Just like the IPPs of the 1990s and 2015 that are today bankrupting this country.
How much of this is due to blunders by management (appointed by each government)??
For example PIA Premier launched during PML tenure cost the airline 2 billion rupees within a few months as the lease rate of the single A330-300 could not be recovered from ticket sales.
The operation of fuel heavy 747-300s until 2013-14 even when oil hit 100 dollars a barrel and PIA kept on operating A310-300s 737-300s and 747-300s with most airlines switching to A330s 777s and A320s.
Losses financed by a blank check from the governments until the debt piled up so much that 50% of the revenue was going into financing interest payments.
I think PIA finances should be audited and see what PIA paid for goods and services versus what other airlines were paying.
PIA was raped by its management that was put it in place by PPP and PML governments.
Just like the IPPs of the 1990s and 2015 that are today bankrupting this country.
P.I.A
God's International Airline
God's International Airline
-
arshad.altaf
- Registered Member
- Posts: 801
- Joined: Fri Dec 25, 2015 8:24 am
Re: White elephant’ PIA has cost national kitty Rs830bn, says Aleem Khan
@Amaad Lone: Excellently summarized!