PIA suffers Rs9b loss in nine months

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Abbas Ali
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PIA suffers Rs9b loss in nine months

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ISLAMABAD: Chairman PIA Tariq Kirmani said Thursday that PIA underwent nine billion rupees loss during the last nine months and if the government did not do anything to stabilize the fuel prices, then they could not do anything.

He said this while briefing the meeting of Senate's standing committee for defence and defence production that was held at Parliament house here with Chairman Committee Nisar Memon in the chair.

The committee members expressed dissatisfaction over the performance of PIA.

Chairman PIA said that owing to the increased prices of fuel in international market, the expenditure of PIA fleet of 42 aircrafts soared up from Rs18 billion to Rs34 billion; accordingly, PIA raised the fares, adding he said, "even 15 per cent of the fuel cost was not retrieved as yet."

He said that the PIA finance department does not provide him with data even though he is CEO of PIA.

Source: The News
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Post by Abbas Ali »

Senate body grills PIA for poor performance

By Asim Yasin

ISLAMABAD:
The Senate Defence Committee on Thursday grilled the top management of the Pakistan International Airlines (PIA) for its poor performance and not responding satisfactorily to its queries on technical issues, and directed it to furnish a detailed reply in the next meeting.

The Senate Defence Committee, which met at the Parliament House with its Chairman Senator Nisar Memon in the chair, also grilled the Civil Aviation Authority for not cancelling the license of a new airline company — Pakistan Airways — as it could not abide by the rules and regulations.

Senator Enver Baig, who had raised this issue in the Senate in its last session and the issue was referred to the defence committee, was especially invited to the meeting.

Senator Rukhsana Zuberi came down hard on the PIA for not providing service in its domestic and international flights as per international standards and said even no better facilities available at airports for passengers.

While briefing the committee on the PIA performance, PIA Chairman Tariq Kirmani said that if the government did not do anything to stabilise the fuel prices, then they could not do anything.

He said that owing to the increased prices of fuel in the international market, the expenditure of PIA fleet of 42 aircrafts soared up from Rs 18 billion to Rs 34 billion, and although PIA raised the fares, even 15 per cent of the fuel cost had not been retrieved yet.

He said that the PIA finance department did not provide him with data even though he is the chief executive officer of the PIA.” In place of Fokker aircraft, the third ATR aircraft will reach Pakistan in the last week of December while four other planes would arrive in May,” Tariq Kirmani said.

He said that the PIA has proposed to the federal government to establish fuel equalisation fund, and if it is not established, then the government may change as many chairmen but nobody could improve the financial position of the national flag-carrier.

During the meeting, Senator Rukhsana Zuberi said that there are numerous complaints that PIA aircraft, including the newly bought 777 Boeings, are stranded on overseas airports for violations of engineering and airports rules for want of spare parts.

Replying to a question, the PIA chairman said that the PIA fleet comprises B747, A310, B737, ATR 42 and the B777, and these aircraft are mentioned in accordance with the international standards. “Aircraft manufacturer service Bulletin and Regulatory Authority Airworthiness directives are complied with on all aircraft to ensure reliability and utmost safety of our fleet,” he added.

PIA officials denied that any PIA aircraft was blacklisted by the European Union; however, the PIA management has temporarily withdrawn B747 from the European operations to refurbish these aircraft.

They admitted that the European Union has inspected several PIA aircraft and pointed out certain shortcomings, which were duly addressed. The observed defects were mainly related to aircraft cleanliness and cabin interiors and did not affect the safety and airworthiness of aircraft.

However, the members of the Senate Defence Committee were not satisfied with the reply of the PIA top management, and the chairman of the committee, Senator Nisar Memon, directed the PIA management to furnish a written reply on specific issues with details to the senators concerned.

Senator Enver Baig raised the issue of not cancelling the licence to a new airline company, Pakistan Airways, despite the fact that they did not abide by the rules and regulations of the CAA. He also put a question why the CAA did not take notice of the name of the airline company similar to the Pakistan International Airlines.

Source: The News
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fatah
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Post by fatah »

Why does Mr. Kirmani blames everything on fuel costs? How are other carriers surviving such as Air Blue. These carriers have no state aid. It is very disappointing to hear that Kirmani obvioulsy has run out of ideas. Perhaps he thinks that oil prices should come down to $20 a barrel. However he doesn't realize is that when fuel prices will come down, so will the price of his competitors tickets.
Kirmani is only playing for time like all the previous Chairman of PIA. Make hay while the sun shines and cut loose when somebody does eventually wake up!
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Fuel Surcharge

Post by zerbaer »

Wonder where the Fuel surcharge is going. Surely Kirmani wont know, he doesn't even know his salary. The last Chorman of the gang, it was claimed, didn't take a salary!
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Post by fatah »

zerbaer wrote
Wonder where the Fuel surcharge is going. Surely Kirmani wont know, he doesn't even know his salary. The last Chorman of the gang, it was claimed, didn't take a salary!
Agreed! Well it always amazes me, the lies that come out of their mouths. Musharraf has been in power for over 7 years and the turn around of PIA continues, so we are led to believe. This is the height of incompetency and both the President and the Prime Minister are parties to this plunder of national wealth. I used to believe in their sincerity, but with all their cronies and stooges plundering the nation, I have come to the sad conclusion that every one is just prolonging his hold on to their respective seats.

Obviously I would not want any of our past PM's to come back as we all know too well that they did.
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Post by Amaad Lone »

Chairman PIA said that owing to the increased prices of fuel in international market, the expenditure of PIA fleet of 42 aircrafts soared up from Rs18 billion to Rs34 billion; accordingly, PIA raised the fares, adding he said, “even 15 per cent of the fuel cost was not retrieved as yet.”
No time period is given in this statement. Is this an increase since 2004 or 2005. I mean did the fuel bill increased by rupees 16 billion in two years or within 12 months, or 9 months in which the airline has lose nine billion rupees.

Plus he says that even 15% of the fuel cost was not retrieved as yet. How is that possible, considering the losses are 9 billion (mostly due to fuel bill), yet the increase in oil bill is 16 billion, or in other words the airline has managed to recoup 7 billion rupees from fare increase or increased load factor.

15% of 16 billion increase is 2.4 billion, while losses are a good 7 billion less then increase in fuel bill. What does that statement mean?

I want to know one thing!!!!!!!!!!!!!!

HOW MUCH MONEY HAS AIRBLUE LOST IN THE PAST 24 MONTHS?????
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Post by Abbas Ali »

Some more info from The Pakistani Newspaper about Senate standing committee meeting on Thursday.
Chairman PIA Tariq Kirmani admitted that PIA had to suffer loss to the tune of Rs 9 billion during the last nine months adding government could induct some other one as chairman if it did not accept his proposals for improvement in the national flag carrier.

He told that situation prevailing in PIA is not better adding he had informed the government in this respect. The meeting was presided over by the senator Nisar Memon.

He indicated PIA loss stood at Rs 4 billon during the financial year 2004-5 which has reached the level of Rs 9 billion during the current fiscal year. I have joined PIA 18 months earlier and I can not sort out all the problems facing it", he underlined. I have given the proposal to the government on financial restructuring of PIA besides establishment of prices stability fund. If these proposals are not accepted then government can appoint any one as chairman.
Appointment of three persons in PIA on 'highly inflated salary package' was also discussed at the meeting.
Members of standing committee senator Professor Khurshid Ahmad, senator Anwar Beg and senator Rukhsana Zuberi targeting the performance of PIA, said situation is worsening day by day there. The whole system is in shambles. National airlines has failed to achieve its objectives. Three persons including Aleem Khan, Zafar Usmani and Naeem Khan have been appointed in PIA on highly inflated salary package. Aleem Khan is being paid Rs 8.50 Lakh per month as chief financial operator. Zafar Usmani is receiving pay far higher than this. Naeem has received Rs 7 million on account of salary for three months as consultant.

Chairman PIA admitted that salaries of these three persons were higher than his own salary.

Opposition pointed out that Aleem Khan and Zafar Usmani have no experience of any airlines as they have come from PTCL and mobile company respectively.
Source: The Pakistani Newspaper

Related topic: PIA paying highest salary, perks to its chief
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Post by FMC »

Who will finance the prices stability fund? The GOP or the masses of Pakistan? Such a fund should be established for the people of Pakistan and not for PIA alone. 18 months is a long time for an MBA from IBA to turn around a sinking ship. Abbas, you seem to be getting the point.
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Post by Jacobin777 »

FMC wrote:Who will finance the prices stability fund? The GOP or the masses of Pakistan? Such a fund should be established for the people of Pakistan and not for PIA alone. 18 months is a long time for an MBA from IBA to turn around a sinking ship. Abbas, you seem to be getting the point.
It will take a complete shutdown of the system before the morons find out what went wrong...

..fortunately, we've seen worse in the aviation world...