Debt-Ridden PIA Likely to Suffer Rs. 112 Billion Loss in 2023

Debt-ridden Pakistan International Airlines (PIA) is projected to lose Rs. 112 billion in 2023 after incurring Rs. 80 billion losses the previous year, the national flag carrier’s CEO Air Vice Marshal Amir Hayat said during a news conference.

Hayat said PIA owed Rs. 742 billion in debt and warned that the airline’s yearly losses could exceed Rs. 259 billion by 2030 if it isn’t restructured. For this purpose, he said the company was looking to hire a financial adviser to help with the restructuring.

The PIA top executive insisted that running the airline as a public-private partnership was the only way to transform the airline into a viable business.

In terms of operations, Hayat briefly explained that maximum improvements had been implemented in the airline’s operations, with four modern Airbus 320 planes purchased and two older Boeing 777 jets reconditioned.

He further informed that co-branding expanded the annual target to Rs. 500 million, which has been achieved by 81 percent.

The PIA CEO’s comments come after the Cabinet Committee on Privatization (CCoP) Monday decided to include Pakistan International Airlines Co. Ltd (PIACL) in the list of active privatization projects of the ongoing privatization program.

Also, the Privatization Division at this meeting presented a summary of detailed updates regarding the privatization of the Roosevelt Hotel. The committee after discussion gave concurrence to the Privatization Commission for hiring of a financial adviser to process/structure the transaction of Roosevelt Hotel, an asset of PIA Investment Limited (PIA-IL).

Source: Pro Pakistani