PIA sees improvement in flight operations, confirms spox

ISLAMABAD - The national carrier of Pakistan has claimed to improve flight operations amid mounting financial crisis and calls for privatization.

The spokesperson for Pakistan International Airlines, Abdullah Hafeez Khan confirmed in a statement on Sunday that there was an improvement in the flight operations of the flag carrier.

“Seventy-seven flights will be operated from airports across the country today,” he confirmed, adding that out of 77 flights, 25 will be for local destinations while the remaining were for international destinations.

The spokesperson detailed that the ratio of PIA flights that would operate as per the schedule on Sunday was 87 per cent.

The positive development comes days after the carrier managed to secure a hefty bank loan after it was highlighted that without a bailout package, the carrier was on the brink of ceasing operations though PIA spokesperson had refuted reports of the flag carrier’s closure.

A day earlier, it was reported that the airline had paid the salaries of the employees. Media reports said that the Pakistan Civil Aviation Authority (PCCA) had given Rs 1 billion to the carrier for clearing the pending salaries of the employees.

The national carrier - which was once seen by international carriers as a success story - was recently on the brink of grounding 15 planes bringing down the number of operational aircraft further.  

PIA's challenges worsened after it was reported last week that the supply of spare parts to the carrier could be suspended over cash flow problems.

Earlier, the Economic Coordination Committee (ECC) also discussed issues pertaining to PIA which has been sustaining losses for quite a long period of time now.

After detailed deliberation, the participants decided to constitute a separate committee for the assessment of the restructuring plan of PIA but rejected the PIA's demand for the provision of Rs22.9 billion and deferment of Rs1.3 billion per month to the Federal Bureau of Revenue (FBR) as well as loans and markup amount till the finalization of the restructuring plan.

During the meeting, the secretary Aviation gave a detailed briefing to the chair about the financial burdens, liabilities of PIA, and the need for restructuring the state-owned enterprise.

The participants of the high-profile meeting discussed and reviewed the timelines and costs of the restructuring plan and after detailed discussion, it was decided to constitute a separate committee for the assessment of PIA's restructuring plan.

The participants also came to the conclusion that the Finance Division and State Bank of Pakistan would support PIA in dealing with its financial challenges after a concrete plan for restructuring the airlines was finalized and submitted to the satisfaction of the committee.

There have been demands for privatizing the national carrier due to its economic nonviability. Former Aviation Minister Khawaja Saad Rafique also stressed the importance of privatizing the carrier or else it would have to shut operations.

In the final days of the PDM regime, it was also decided to privatize loss-making Pakistan International Airlines during a meeting of the Cabinet Committee on Privatization chaired by then Finance Minister Ishaq Dar.

The committee “after deliberation decided to include Pakistan International Airlines Co. Ltd. in the list of active privatization projects of the ongoing privatization program, following an amendment in the law by the Parliament,” a finance ministry statement had said.