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Tag: Pakistan International Airlines

  • PIA declares Rs67.32 billion annual loss

    PIA declares Rs67.32 billion annual loss

    KARACHI: Pakistan International Airlines (PIA) – the national flag carrier – has declared after tax loss of Rs67.32 billion for the year ended December 31, 2018.

    According to financial statement of the national flag carrier shared with the Pakistan Stock Exchange (PSX) on Friday, the annual loss of the company further ballooned by 32 percent to Rs67.32 billion for the year 2018 as compared with the loss of Rs51 billion in the preceding year.

    The net revenue of the airlines increased to Rs103.49 billion for the year under review as compared with Rs90.55 billion in the preceding year, registering an increase of 14.29 percent.

    The rupee depreciation has increased the cost of services as fuel cost for the year 2018 increased to Rs43.55 billion as compared with Rs31 billion in the year 2017.

    The operation losses of the airlines increased by 31.28 percent to Rs47 billion in the year 2018 when compared with Rs35.81 billion in the preceding year.

    The board of directors of PIA approved the financial results in a meeting held on Thursday November 21, 2019.

  • PIA sustains loss of Rs106.57 million due to wastage of meals

    PIA sustains loss of Rs106.57 million due to wastage of meals

    KARACHI: The administration of Pakistan International Airlines (PIA) has wasted meals of around Rs106.57 million during to poor planning and negligence, revealed by Audit General of Pakistan (AGP) in its report.

    An audit report of AGP revealed that during audit of PIA Flight Kitech for the years 2013 to 2015, it was observed that total meals amounting to Rs72.573 million were uplifted against the passengers travelled during the years 2013 to 2015.

    Similarly, the management of PIA, Lahore Station did not properly control the meal wastage at Lahore station and there was no proper monitoring system of meal-uplift, due to which excess meals were uplifted amounting to Rs34 million. “Thus, PIA sustained a loss of Rs106.57 million,” the audit report said.

    Audit is of the view that loss was incurred due to poor planning and negligence.

    It further said that the matter was reported to the management in April 2016 and in November 2018 but no reply was received. The departmental audit committee meeting was not convened despite requests by the audit.

    The AGP recommended the PIA for fixing responsibility on the persons at fault.

  • PIA’s empty flights cause Rs184 million losses

    PIA’s empty flights cause Rs184 million losses

    KARACHI: The Auditor General of Pakistan (AGP) has detected Rs184 million losses due mismanagement by Pakistan International Airlines (PIA) for carrying empty flights.

    The AGP in its audit report for PIA Islamabad Office for the year 2016/2016, observed that 46 flights were operated without any passenger, resulting loss of Rs184 million. These flights are other than 36 flights for Hajj and Umrah.

    The AGP said that General Manager, Network and Schedule Planning, PG-X(Reporting to Director Marketing) was responsible to supervise and monitor proper designing of long term and short term operating plans; and to focus on network management and evaluation of multiple scenario of schedule changes.

    The audit of the view that operation of flight without passenger shows lack of proper planning and control on the part of the management.

    “The matter was report to the management in October, 2018 but no reply was received. DAC meeting was not convened despite requests by the audit.”

    The AGP recommended to investigate the matter with a view to fix responsibility on the persons at fault.

  • PIA constitutes five-member committee to review fake degree cases

    PIA constitutes five-member committee to review fake degree cases

    KARACHI: A five-member committee has been constituted by the management of Pakistan International Airlines (PIA) to review, examine and recommend action in the fake degrees cases.

    Air Vice Marshal Noor Abbas, advisor to the Chief Executive Office (CEO) will be chairman of this committee, sources said on Friday. Other four members are included: Agha Dur Muhammad Tarique, GM Legal Services; Col. Zahid Hamid, Chief Instructor PTC; Amir Bashir, GM Flight Services; and Rizwan Ahmed Awan.

    The PIA management formed this committee to review the fake degrees cases and the penalties awarded.

    PIA sources said that the review committee had been formed with the approval of the CEO.

    The PIA management granted dismissal from service to over 400 employees for submitting fake educational degrees. However, around 200 employees moved the superior courts seeking relief against the decision. The court referred back the case to PIA management to review the cases as per law.

    Related Posts

    PIA implements business plan to improve financial health

  • Fresh audits of PIA, Pakistan Steel to be conducted for transparency

    Fresh audits of PIA, Pakistan Steel to be conducted for transparency

    KARACHI: The federal government will conduct fresh audit of Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) in order to ensure transparency in state-owned enterprises (SOE).

    The audits would be initiated for improving SOE governance, transparency and efficiency.

    The federal government will make public the outcome of the audits by December 2019, which was agreed by Pakistani authorities with the International Monetary Fund (IMF).

    The have approved the privatization of seven companies based on their good privatization prospects. They will follow best practices regarding the process and conditions of privatization to ensure a successful and transparent outcome.

    The government will sort SOEs into companies for sale, liquidation, or retaining under state ownership. This has to be done by end-September 2020.

    Further the government will submit to parliament a new State-Owned Enterprise Law by end-September 2020 aimed at modernizing and clearly defining the role of the State as owner, regulator, and shareholder of SOEs.

    In this context, the recently established holding company to manage SOEs will follow the required governance and transparency principles in line with international best practices.

    The IMF will provide technical assistance to support the development of this law and to review ownership arrangements with a view to designing an effective ownership model.

    Pakistan has assured the IMF of taking measures for improvement of the economy, which included:

    — Commit to not grant further tax amnesties Continuous

    — Issue licenses for the track-and-trace system for excises on cigarettes end-September 2019

    — Adopt measures to strengthen the effectiveness of the AML/CFT framework to support the country’s efforts to exit end-October 2019 the Financial Action Task Force list of jurisdictions with serious deficiencies

    — Submit to parliament, in consultation with IMF staff, amendments to the State Bank of Pakistan Act to address all end-December 2019 recommendations of the new 2019 Safeguards Assessment Report and the 2016 Technical Assistance Report on Central Bank Law Reform.

    — Notify the FY 2020 electricity tariff schedule as determined by the regulator end-September 2019

    — Prepare a comprehensive circular debt reduction plan in collaboration with international partners (para. 19 MEFP) end-September 2019

    — Submit to parliament amendments to the NEPRA Act to (i) ensure full automaticity of the quarterly tariff end-December 2019 adjustments and (ii) eliminate the gap between the regular annual tariff determination and notification by the government

  • PIA implements business plan to improve financial health

    PIA implements business plan to improve financial health

    ISLAMABAD: Pakistan International Airlines Corporation (PIAC) has implemented strategic business plan to improve its financial health, according to Economic Survey 2018/2019 launched a day earlier.

    It said PIA came into existence in 1955 as Public Sector organization.

    However, in April 2016 it was converted from a statuary organization to a company governed by Companies Act 1984, through Pakistan International Airlines Limited (PIAL conversion) Act 2016.

    At present PIA is passing through a dire financial state. However, the present government is very keen to make itself-reliant.

    Efforts are underway to improve the financial health of the corporation by reducing its losses through various means and modes. Stringent action is being taken against corruption and mismanagement.

    Despite financial constraints and tough and uneven competitive environment, PIACL gave a stable performance during 2018.

    To reduce losses, PIA had to take measures like route rationalization and suspended its loss making routes.

    PIA is in the process of its Strategic Business Plan 2019-23 to improve its performance:

    i. Launching of profitable new routes like Silakot-Sharjha, Lahore-Muscat, Islamabad-Doha and Lahore-Bangkok-Kualalalmpur. These routes are going very strong and economically viable

    ii. More new routes have been started which include; Sialkot-Paris-Barcelona, Peshawar-Sharjha, Peshawar-Al Ain and Multan-Sharjha

    iii. Increasing frequencies and capacity on profitable routes like Jeddah and Madinah coupled with closure of loss making routes like New York, Salalah (Oman), Kuwait, Mumbai

    iv. Stoppage of all officiating and extra allowances given on additional assignments to officials

    v. Ban on overtime allowances in all cadres along with monitoring of flights by senior officials

    vi. Increasing regularity and punctuality of flights by assigning target to be achieved 90 percent

    vii. Improvement in flight services, training of crew and regular monitoring

    viii. Introduction of executive economy class on European and Gulf sectors which are attracting more customers

    ix. Rationalization of fares according to market demand thus helping in increase of seat factor

    x. Delays of flights have been cut down significantly by better planning in engineering, flight operation and ground handling departments

    xi. Special emphasis on cargo business with monitoring of performance, rationalization of cargo fares and more effective liaison with all stakeholders

    The survey said PIA is in process of acquiring new aircraft for its fleet. Presently, a tender has been floated for four narrow body aircrafts according to PPRA rules.

    PIA has submitted its business plan to the federal government and now it is under consideration for approval of Federal Cabinet.

  • PSX warns PIA of suspending its share trading for non-compliance

    PSX warns PIA of suspending its share trading for non-compliance

    KARACHI: Pakistan Stock Exchange (PSX) has warned Pakistan International Airline (PIA) of suspending share trading from May 22, 2019 for non-compliance of regulations.

    In a notice issued on Tuesday, the PSX referring to the notice issued on October 09, 2018 to PIA regarding non-compliance, said that PIA has still failed to hold its annual general meeting for the year ended December 31, 2017.

    “Further, the deadline for holding the AGM for the year ended December 31, 2018 has expired on April 30, 2019, which was required to be held within 120 days from the date of closure of financial year,”

    The non-holding of AGM and non-submission of annual audited accounts for two consecutive years attracts action of suspension of trading in its shares under PSX Regulations.

    The PSX said that trading in shares of the company is required to be suspended immediately, however, in order to avoid immediate suspension in the interest of investors, PIA has been advised to rectify the defaults within 14 days i.e. by Tuesday May 21, 2019, failing which trading in its shares shall be suspended with effect from May 22, 2019.

    It further said it should be noted that upon failure of the company to rectify its default within seven trading days i.e. by Friday May 10, 2019 trading in the shares of the company shall be converted to SPOT (T + 0) settlement for the next seven trading days i.e. till Tuesday, May 21, 2019.

  • PIA starts monitoring of free tickets

    PIA starts monitoring of free tickets

    KARACHI – Pakistan International Airlines (PIA) has initiated a comprehensive monitoring system for non-revenue passengers and government agency officials traveling on 100 percent free tickets, according to a recent notification issued by the national flag carrier.

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  • PIA starts flight operation on three more routes

    PIA starts flight operation on three more routes

    Karachi – In a bid to enhance air connectivity and offer more options to travelers in the region, Pakistan International Airlines (PIA) is set to commence additional flight operations on three key routes starting next month.

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  • PIA starts Sialkot to Paris, Barcelona flight operation

    PIA starts Sialkot to Paris, Barcelona flight operation

    Pakistan International Airlines (PIA) has added another feather to its cap by launching flight operations between Sialkot, Pakistan, and two major European destinations, Paris and Barcelona.

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