Need equity injection to rescue from losses: 'PIA facing serious financial crises'

Managing Director, Pakistan International Airline (PIA), Captain Mohammad Aijaz Haroon has said that PIA facing serious financial crises due to various reasons and it need equity injection to rescue PIA from losses. Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI) on Thursday, he said despite making losses PIA made not a single rupee default in payment.
In the end of the year we have to barrow from banks to fill the shortfall, he added. He expressed that PIA has 25 old, 9 new and rests small aircraft in its fleet with which we can not earn profit. High cost of fuel and depreciation of Pak rupees are main causes of losses.
Replying to question regarding PIA selling its gainful routes, Aijaz Haroon made it clear that PIA is not selling any of its profitable routes and added that it will continue to operate on all its major routes. About agreement with Turkish Airlines, he said that the proposal has been discussed between the two airlines and it is still not finalised. He said the proposed agreement with Turkish Airline would allow the national carrier to find new markets in capitals of the west.
He was of the view that if the proposed agreement is concluded it would help PIA passengers to travel to any destination in USA, Canada and Europe. They would also find speedy links in a very short time, he said. The Managing Director said that PIA would get a chance to book passengers for any destination in Europe and the US on daily flights. PIA will take passengers to Istanbul and from there the Turkish Airlines will take them on onward journey.
He said that the passengers would advantage as the Turkish Airlines have daily flights to destinations where PIA does not have. PIA will get 15 percent commission on all such bookings, he added Aijaz Haroon said at present PIA has only ten flights to destination in Europe but if any Pakistani desire to go to Brussels he has to board foreign airline.
He said, PIA conducts three flights to New York and two to Chicago but the Turkish Airlines operates daily flights to Washington DC, Los Angles and other locations.
Replying about high charges of ticket refund incase it remain unutilised for any reason, he agreed that the charges are higher and assured that it may be considered to be reduced About demand of inducting KCCI representative on PIA board of Directors, he said PIA Board of directors already has four business community representatives. Inducting KCCI representative may provoke other chambers of the country to make similar demand. However, he agreed to put forward the proposal for consideration of authority.
President KCCI, Saeed Shafiq said that big chunk of revenue has been eaten up by loss making government organisation and PIA is said be a while elephant. He suggested that KCCI representative be inducted on PIA Board of Director to help bail out PIA from financial crises.