KARACHI: Defence Minister, Choudhary Ahmed Mukhtar categorically said there would be no privatisation of national carrier Pakistan International Airlines (PIA) on Tuesday.
“It is the entity of the federal government and will not be privatised”, he said at a press conference after chairing the PIA Board meeting.
He said talks were being held with the federal government to pick up PIA’s accumulated losses so as to provide relief to the national carrier.
He said as soon as funds would be arranged, new aircrafts would be inducted into the PIA fleet and also said the managing director PIA was not going to be changed.
The picking up traffic by foreign airlines from Pakistan is depriving PIA of its share and government protects the national airline as Emirates and Saudia are protected by their respective countries.
PIA earned a gross profit of Rs 15.9 billion for the year 2009 as compared to 3.6 billion during the year 2008.
He pointed out an increase in net revenue was by Rs 5.7 billion, higher by 6.4 percent i.e. Rs 94,564 million in 2009 compared to Rs 88,863 million in 2008. He said during the year 2009 the overall revenue of PIA has shown a growth of Rs 5.7 billion through a remarkable growth in passenger revenue, chartered flights and non-transport revenue.
However, the exchange losses and financial costs on fleet and non-fleet borrowing pushed PIA to an after tax loss of Rs 5.8 billion in 2009 as against Rs 36.1 billion in 2008.
He said cost of services decreased from Rs 85.3 billion in 2008 to Rs 78.6 billion in 2009 while during the year 2009 the exchange loss was Rs 6.7 billion and the finance cost was Rs 9.2 billion.
MD PIA, Capt Aijaz Haroon said traffic rights to foreign airlines in Pakistan were given in the past under agreements.
He said Emirates has not yet given approval to Sialkot-Dubai flights but a decision in this regard was expected by March 28.
He informed the airline employees have been accorded a 20 percent raise in wages and regularisation of the services of some 5000 employees in one go.
Source: http://www.dailytimes.com.pk/default.asp?page=2010\03\17\story_17-3-2010_pg5_2
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