PIA losses surge to $4 billion: Mehtab Abbasi

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The country’s flagship carrier Pakistan International Airlines is slipping further into losses by each passing day, and the management appears to have no clue how to saving the ‘sinking Titanic’.

Advisor to Prime Minister on Aviation, Sardar Mehtab Abbasi told that the airline’s losses have surged to $4 billion, because neither the government nor the airline’s management or its employees are ready to own it.

Sardar Mehtab, however, expressed hope the airline would be able to turn around its affairs if it utilises its resources to the full.

“There is a lot of talent, a lot of potential, if they [PIA] utilise their potential to the maximum then things can change,” he said.

‘PIA aircraft sale to German firm was a mistake’

Referring to the alleged sale of a PIA aircraft to a German museum, Sardar Mehtab said the decision taken by the former German CEO of PIA, Bernd Hildenbrand, was a “mistake.”

“Investigation into the ‘sale’ is still ongoing in Germany,” the aviation advisor said, adding that the aircraft was sold along with its engine as well as other valuable machinery.

Sardar Mehtab further revealed that PIA had to pay as much as $200,000 in parking fee for the aircraft in Germany.

Cost-cutting in focus

The mounting losses even prompted the PIA management to mull discontinuing flight operations to the United States, it was reported earlier. However, a PIA spokesperson had dismissed the reports, saying the airline was seriously considering devising an effective strategy to minimise expenses for running the US-bound flights but would continue the flights until further notice.

According to the PIA’s financial statement for up to September 2016, the airlines’ total liabilities have mounted to Rs349 billion, against only Rs113.8 billion worth of assets.

Source & © Copyright: SUCH TV