PIA flight operations to the US discontinued due the Rs1.25 billion losses annually
A glorious chapter in the history of Pakistan International Airlines (PIA) closed as the last flight of the national airliner departed for Lahore from the United States.
The last flight PIA flight PK-712 left with 300 passengers from New York’s John F. Kennedy Airport, PIA landed back ending 56 years old flight operations to the United States.
It was a matter of great concern for passengers travelling on this flight as this was the national flag-carrier’s last flight to the US.
According to PIA officials Two PIA flights were being operating for New York via Manchester and have been incurring losses of up to Rs1.25 billion annually due to its flight operations to the US a concern which prompted the management to discontinue the flights.
Sources in the airline said due to poor marketing policies of the management wherein routes were given to foreign airlines. Those foreign airlines were operating flights to New York on a daily basis with good meal, active In-Flight Entertainment System, low fares and efficient and willing crew members.
A senior PIA officer seeking anonymity said transfers and postings were not being made in the airline purely on merit rather it was being done on the basis of liking and disliking.
The PIA had purchased a B-777-LR for long-route flights on inflated rates, but this route has been now closed due to poor management.
PIA now operate with a fleet of 32 aircraft is still operating in 28 international airports but over-employment and the poor maintenance of the aircrafts are causing problems for the state institutions for the past 12 years.
Earlier according to the sources the federal government is ready to permit one other bailout package deal price Rs13 billion to the embattled nationwide flag provider. The total liabilities are estimated at over Rs300 billion and most of them have contingent ramifications on the federal funds
Sick PIA to get Rs13 billion bailout package
Federal government is set to allow another bailout package worth Rs13 billion to the embattled national flag carrier, and will allocate around Rs230bn for the procurement of more than seven million tonnes of wheat during the current season.
According to the media reports, Economic Coordination Committee (ECC) of the cabinet being called this week will also approve special honoraria for officers working on Sustainable Development Goals (SDGs), besides allowing four-month salaries to employees of the fledgling Pakistan Steel Mills (PSM).
Sources said that the Rs13bn bailout package was ready for approval to roll over the airline’s existing maturing loans and liabilities. It has been in continuous default on payments to fuel suppliers, including the state-run Pakistan State Oil (PSO).
Earlier this year, the government increased its guarantee limit for PIA by Rs10.5bn to Rs161.5bn to address the airline’s immediate challenges. The PIA management had pleaded at the time that its fiscal challenges had multiplied after a plane crash (PK-661), though it had been operating with a liquidity crisis for several years.