Pakistan International Airlines

The woes continue for loss-making Pakistan International Airlines

The woes continue for Pakistan International Airlines (PIA) with ongoing losses amid allegations of mismanagement, deteriorating economic conditions and a worsening corporate image for the national carrier. Talk of bankruptcy has continued to surround the carrier. The carrier has generated losses amounting to PKR100 billion (USD1.15 billion) over the past three years alone, with losses continuing in 2011, including a USD59 million operating loss in the three months to Sep-2011. 

While majority owner, the Pakistan Government, has continued to assert its intention on making the national flag carrier a profitable state entity, even it is tiring of the continued losses and scandal surrounding the carrier. Pakistan's Finance Secretary Dr Waqar Masood this month stated the Pakistani Government has turned down a PKR20 billion (USD232 million) bailout package requested by the carrier to aid its recovery from its "financial crisis", stating it would not continue to provide finances without a clear roadmap for the national carrier's financial and administrative restructuring. 

Pakistan International Airlines in precarious situation as losses continue

Pakistan’s aviation industry has struggled in recent years due in large part to the poor performance of national carrier Pakistan International Airlines (PIA), which continues to be supported by majority owner, the Pakistan Government, as the carrier’s losses continue to flow.

Pakistan International Airlines losses continue to flow but some pockets of growth and improvement

Pakistan’s aviation industry has struggled in recent years due in large part to the poor performance of national carrier Pakistan International Airlines (PIA), which continues to be supported by majority owner, the Pakistani Government, as the carrier’s losses continue to flow.

Oman awards USD1.8bn new Muscat terminal project

Oman’s Government announced it has awarded an OMR706 million (USD1.8 billion) contract for the construction of a new terminal at Muscat International Airport, to a joint venture between US-based Bechtel and Oman's Bahwan Contracting. The government stated the project will be completed in 3Q2014 and the airport’s capacity will increase from four million passengers p/a to 12 million.

Pakistan aviation: A review of 2009 and outlook for 2010

Pakistan’s aviation industry has suffered in recent years due, in large part, to the poor performance of national carrier, Pakistan International Airlines, which continues to be supported by the Pakistani Government. The nation’s aviation industry is confronted by continuing uncertainty with regard to the security situation, which is hampering economic development. But there have been some pockets of growth.

Pakistan International Airlines continues to receive Government cash injections

The Pakistan Government, as the majority shareholder of Pakistan International Airlines (PIA), continues to support the carrier it reports further losses. In 3Q2009, the government agreed to provide another equity contribution to PIA to cover interest payments on its significant debts. An amount of USD128.7 million has been provided to the carrier as at 30-Sep-2009, against 887 million ‘A’ class ordinary shares of PKR10 (USD0.12) issued to the government. Another 186 million ordinary shares are expected to be issued during the current year.