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. [2015 words]
Unlock the following content in this report:
- No bail-out without roadmap; business at national carrier is 'as usual unacceptable': Pakistan Prime Minister
- Losses worsen in Sep-2011 quarter
- Safety concerns, delays and cancellations result in deteriorating consumer confidence in PIA
- PIA to add 30 new aircraft to fleet by 2020
- Increased competition on Gulf routes
- Domestic capacity declines notable between 2006 and 2010
- Pakistan International Airlines in precarious situation as losses continue
Graphs and data:
- Pakistan International Airlines profit/loss from operations margin and net profit/loss margin: 3Q2010 vs 3Q2011
- Pakistan International Airlines consolidated financial highlights for the three months ended Sep-2011
- Pakistan International Airlines passenger load factor: 3Q2010 vs 3Q2011
- Pakistan International Airlines fleet composition: Nov-2011
- Pakistan to Middle East capacity (seats per week, one way): 19-Sep-2011 to 28-Apr-2012
- Pakistan International Airlines international capacity by region: 07-Nov-2011 to 13-Nov-2011
- Pakistan to Saudi Arabia (seats per week, one way): 19-Sep-2011 to 28-Apr-2012
- Pakistan domestic capacity trends: 11 months to Nov-2002 to 11 months to Nov-2011
- Pakistan international capacity trends: 11 months to Nov-2002 to 11 months to Nov-2011
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