ISLAMABAD: Despite bearing loss of Rs 3.31 billion in last five years, total assets of Pakistan International Airlines Corporation (PIAC) have increased by Rs 2 billion to Rs 126 billion in 2014 from Rs 124 billion in 2013.
The government considered selling the airline to the private sector due to the persistent losses suffered by the airline and announced its privatization plans but they were never implemented. In February 2009 the carrier was dropped from the privatization list.
A well-placed source at Finance Ministry Monday while sharing 3rd quarterly Annual Report of PIAC said under preparation Business Development Plan of PIAC was expected to be finalised shortly.
“The Business Plan will encompass airline’s projected financials for short-medium and long-term future. Airline’s profitability can only be ascertained once the plan is finalized and approved. At present, forecasting is pre-mature,” the source added.
PIAC operates scheduled services to 23 domestic destinations and 30 international destinations in 27 countries across Asia, Europe and North America and presently it is by far Pakistan’s largest airline with a fleet of 31 airplanes and at least 10 more on order.
The source further said that PIAC paid total Rs 3.31 million as landing and parking fee to Civil Aviation Authority (CAA) during last two fiscal years; in 2012, PIAC paid landing and parking fee of Rs 1.72 million and in 2013 the national flag carrier paid Rs 1.622 as landing and parking fee.
The source said that private airlines and operators were operating their aircraft according to their own corporate standards & agreements with CAA and currently PIAC was not prosecuting any case in connection with the payment of ground fee.
It is pertinent to not here that PIAC is majority owned by the government (87%) while the rest 13% by private shareholders and it is under the administration of Ministry of Defence the chairman of which is Prime Minister. Government took several steps towards outsourcing of non-core business including catering units (starting with Karachi Flight Kitchen), ground handling (starting with ramp services) and engineering to be gradually carved out of the airline and operated as independent companies. The government has had many plans for the privatization of the State owned airline. However, no reasonable agreement or solution has been found to this day.
