PIA deficit crosses 20 billion mark: Senate told

[Abbas Ali]

ISLAMABAD: The senate was informed in the question hour on Tuesday that PIA’s deficit has crossed the Rs. 20 billion mark, while a financial strategy is being evolved to get it out of financial straits.

Replying to a question the federal parliamentary minister Sher Afgan explained that Saudi Airline was being paid royalty charges at the rate of U$. 4 (Rs.244/-) per hajji.

Replying to another question, Sher Afgan said that PIA increases its fares during Hajj and Ramadan season because the airplanes often return empty, and announced plans to induct the services of private airlines for the pilgrims.

Opposition strongly protested about inadequate answers about the performance of the National carrier and criticized the uniform fares, which have hurt Peshawar, since the city has a shorter distance. The minister denied any intention of leasing any Turkish aircraft.

Replying to another question, the defense minister gave a written assurance that 6,500 acres of land had been reserved for the Gwadar Airport, and an amount of Rs.10.50 million has been handed over to military estate, for its construction, which would take two years to complete.

He also said that during the previous two years, a sum of Rs. 19.8 million has been spent on the upkeep and repairs of PIA headquarters and Karachi offices, while another Rs. 2.0 million are being spent on the repairs of the lifts, which would be for the benefit of labors, employees and guests and not of the chairman.

He also informed the House that the Civil aviation has submitted its report about the crashed Fokker aircraft on 10 July 2006 to PM.

Later on, Chairman Senate Mohammadmian Soomro adjourned the hearing of Upper House of the parliament till Thursday (tomorrow) evening.

The House will meet again at 4:00 pm.

Source: Online

[Amaad Lone]

The twenty billion loss is over what period?

Is this what they call the aggregate loss over many years??

I want to know the PIA finances in last three months, when fuel prices were falling.

October 2006 to December 2006.

[mohammad abdulaziz]

I am anxiously awaiting the financials for the 4th quarter. It would be interesting to see that financial reflects identical positive impact on the bottom line in the 4th quarter or not as fuel cost has decreased substantially after mid September – roughly around 25%. Therefore, PIA fuel cost should reduce by 25%, which, in my opinion, should translate into around 2.5 Billion saving in the fuel cost. It would also prove that PIA management point of view that fuel cost is responsible for unprecedented losses was justified or not.

[DC10]

I am anxiously awaiting the financials for the 4th quarter. It would be interesting to see that financial reflects identical positive impact on the bottom line in the 4th quarter or not as fuel cost has decreased substantially after mid September – roughly around 25%. Therefore, PIA fuel cost should reduce by 25%, which, in my opinion, should translate into around 2.5 Billion saving in the fuel cost. It would also prove that PIA management point of view that fuel cost is responsible for unprecedented losses was justified or not.

Chief Internal Auditor, PIA is worried about the rising mark up bill for purchasing new equipment. Fuel price is a secondary issue.

[mohammad abdulaziz]

Although increase in Mark-up is one of the major issues, however, I don't agree that financial charges is the primary issue simply because out of loss of 9 Billion that PIA sustained in the 9 months of 2006, increase in financial charges was to the tune of 1.5 Billion

[DC10]

Although increase in Mark-up is one of the major issues, however, I don't agree that financial charges is the primary issue simply because out of loss of 9 Billion that PIA sustained in the 9 months of 2006, increase in financial charges was to the tune of 1.5 Billion

The loss measuring gauge can only be and has always been the 'BLOCK HOUR COST'.