PIA administration also halted its flights to some international destinations due to the losses
Pakistan International Airline (PIA) announced to withdraw discounted rates for senior citizens and handicapped individuals due to financial crises.
According to PIA press release that it will no longer give 40%discounts to the elderly citizens and the disable citizens.
PIA offered senior citizens, 65 and above a 20% discount on flights to and from the UK, the USA, Ireland, Canada, Europe, and Asia. Furthermore, the discount was also offered in domestic flights in economy, business, & economy plus flights.
In order to save the airline from an early death, the current government is thinking to privatize the airline and also halted its flights to some international destinations.
According to the financial figures released by PIA, the national flag carrier posted a net loss of Rs45 billion for the year 2016, a jump of 36 percent over the loss of Rs33bn incurred in the previous year
Revenues for the two comparable quarters remained almost flat. The loss from operations in the latest quarter jumped to Rs7.71bn from Rs2.65bn a year ago due to an increase in aircraft fuel costs that amounted to Rs8bn in January-March.
It is claimed by the airline management that it is suffering losses in billions. Due to lack of money, the service offered by PIA is inadequate thus it’s almost 50% international traveller load in now taken by other global airlines.
An official source from PIA said that the board of directors and government has given a go head for the cost cutting and cleansing drive. New PIA management has started working on these lines and the sacking of the Chief of Human Resource department was the first step in this regard.
Earlier the federal government informed the National Assembly that it wants to sell a 26 percent equity stake in PIA along with management control to a private strategic partner.