PIA’s annual loss soars to Rs45bn
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KARACHI: Pakistan International Airlines Corporation (PIA) posted a net loss of Rs45 billion ($433 million) for 2016, a jump of 36 per cent over the loss of Rs33bn ($310m) incurred in the previous year.
According to a stock filing on Friday, the company’s revenue was down 2pc to Rs89bn from Rs91bn a year ago.
The airline also released financial figures for January-March. It posted a net loss of Rs11bn in the three-month period, up 91pc from Rs6bn in the similar quarter of the earlier year.
Revenues for the two comparable quarters remained almost flat. The loss from operations in the latest quarter jumped to Rs7.71bn from Rs2.65bn a year ago due to an increase in aircraft fuel costs that amounted to Rs8bn in January-March.
But the bottom line was hit mainly by an unexplained item marked as “other costs”. It amounted to Rs20bn for the quarter, up from Rs18bn a year ago.
Investors will have to wait for detailed accounts to study the relating notes to learn what this amount represents.
PIA Secretary Muhammad Shuaib was not available for comment.
The airline did not announce any dividend. The stock lost 36 paisa to close at Rs4.63 a share on the stock market.
Total assets of the airline at the end of 2016 stood at Rs110bn. The notes appended to the accounts for the quarter ending on March 31 said that the airline had a fleet size of 36 aircraft with 11 777s, 15 A320s, including four on wet lease, five ATR72s and five ATR42s.
“The company is in the process of acquiring more aircraft on dry lease for which tenders have been floated,” stated a note attached to the quarterly accounts.
In the last report, PIA mentioned that as the majority shareholder in the company, the government had communicated that it would extend “maximum” support to maintain the company’s “going concern” status.
It was possibly to explain the auditors’ note on the company’s “going concern concept” as its liabilities exceeded assets.
The company asserted that “PIA continues and would sustain in the long term as a viable business entity” on the basis of numerous financial measures taken since 2012 to lift the airline off the ground.
Published in Dawn, October 14th, 2017
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Comments (40) Closed
Oct 14, 2017 08:41am
What government or PM is responsible for this loss? The answers will stop at NS. AZ and NS two people have pulled Pakistan into darkness.
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Oct 14, 2017 08:42am
And yesterday Ahsan Iqbal getting irritated by ISPR to refrain from present condition of economy, which is making us the proudest Asian Tiger of Asia?
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Oct 14, 2017 08:46am
What a shame, Is anyone accountable?
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Oct 14, 2017 08:52am
What's the point in keeping it operational?
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Oct 14, 2017 09:00am
Last two governments have been hiring people in PIA. Now there are about 700 employees per aircraft. This is one of the main problem. Some PMLN leaders are interested in destroying PIA for others reasons such as supporting some private airlines and selling PIA access at rock bottom price to their buddies.
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Oct 14, 2017 09:07am
WOW, PIA just announced the loses? Its October,its the third quarter of 2017.PIA posted a net loss of Rs 11 Billion in just three months. And they are looking to add more planes? Its not the air crafts that will change the direction of PIA, its the management, the crews, the mentality and the way its being run.
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Oct 14, 2017 09:09am
Privatize the airline, that's the only option left, or, get a real management company to come in and run it like a business, not like a family run business like its being run.
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Oct 14, 2017 09:18am
When you have incompetent and undeserving in control you will always get the same result.
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Oct 14, 2017 09:42am
PIA needs to be privatised immediately by a government which is not afraid of resistance from the PIA workers union.
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Oct 14, 2017 09:43am
PML Goverment in four and half years failed badly in improving one important institution of Pakistan PIA. Even if it get 20 more years I am sure PIA would remain the same. Mr Ahsan Iqbal should stop talking about progress in country’s economy. Public is not fool!
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Oct 14, 2017 09:56am
I personally know the PIA Chairman and Secretary, Senior Joint Secretary Aviation Division. They do nothing but enjoying perks and privileges in all the attached departments of Aviation Division including PIA. They blindly follow each and every decision of the senior officers of PMD ASF CAA PIA and the complaints receives regarding corruption and misuse of authority in Aviation Division Departments are not paid any heed.... There is very poor performance of Mr. M.Irfan Ilahi, Secreary and Chairman, Aviation Division but the Advisor to PM Sardar Mehtab Abbasi is also busy in foreign tours etc and no re-structuring or issues in the system is resolved due to which the status falls day by day...
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Oct 14, 2017 10:01am
National Flag Carrier's should be closed down as annual loss is 45 billion. Orange train and Lahore/Rwp/Multan Metro should be built because annual subsidy would be approx 70 billion. Great.
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Oct 14, 2017 10:02am
Wasn't the interim prime minister, Abbasi, in charge of working on PIA to make it profitable? How can someone who cannot manage an airline manage a entire country?
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Oct 14, 2017 10:10am
No business organisation can carry the number of employees which PIA has per aircraft. Since this ratio can not be corrected because of political considerations, then Government should stop supporting it financially and allow it to go under and new airlines to come up.
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Oct 14, 2017 10:12am
to make national carrier a profitable organization we need to stop appointment of political employment and need competitive management to lift the carrier in respectable position in the airline industry.
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Oct 14, 2017 10:26am
BTW isn't our PM successfully managing a private airline - probably he should consider giving some time to improve PIA
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Oct 14, 2017 10:57am
Let PIA alone u people working for PIA plz
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Oct 14, 2017 11:02am
We need to determine the source of the loss. Is it operating cost of infrastructure, staff or loss of sale? Only after getting reliable data one can determine cause of the loss and fix for it.
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Oct 14, 2017 11:04am
Give this junk to some private enterprise to run and make profitable.
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Oct 14, 2017 11:18am
PIA is like a social welfare system, free medical for staff and family, pension and free airline tickets, plus thousands of incompetent staff - privatization would cause an uproar via pia union and spiral out into a political situation- govt has no option but to drag it the way its going unfortunately!
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Oct 14, 2017 11:25am
What a shame!!!A single airline is not being operated effectively by corrupt politicians how such a whole state can be run properly by these thug politicians.NS AZ all these guys are least bothered to states prosperty rather eager to double ,triple their existing personal estates.Still when people admire these corrupt guys on streets,towns,and on media it's equally shameful for them.
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Oct 14, 2017 11:47am
It's stupid to throw good money after bad. PIA is a white elephant and can't recover. The government should stop trying to bail it out and should privatize it urgently.
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Oct 14, 2017 12:01pm
Air lines management skill should be developed further to sustain in the competitive market. The airlines of the rich middle east countries are expanding their business day by day in Pakistan and Bangladesh . But it should be reverse that we earn more by carrying their passengers. Efforts should be continued.
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Oct 14, 2017 12:34pm
Massive corruption, mismanagement, nepotism, unprofessionalism and compromising on flight safety are the main reasons of PIA's total Failure.
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Oct 14, 2017 12:36pm
We were told in that the experienced government of PMLn will be a panacea for re-vitalizing the economy. GUess it meant REVITALIZING uncontrolled corruption.
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Oct 14, 2017 01:31pm
ver very sad to hear the state of PIA
I was woring for PIA/Singapore from 1978 till 2001
During that time PIA under Nur Khan/Enver Jamal/Anwar Hussein/Khurshid
Anwar/Saleh Tareen the airline was very respected in the market even
tough there is some hiccups but the corrupted staff hve ruin the airline
very very sad
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Oct 14, 2017 01:32pm
fresh elections and i bet the same loss making PIA will bring revenue of min 10-15 bn every year inshaAllah
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Oct 14, 2017 02:02pm
Currupted Management Currupted Airline in the World. Criminals in PIA on Top Positions . I have Proofs
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Oct 14, 2017 02:03pm
Privatize it or shut it down - Currently the government owns over 200 companies (businesses) including the PIA with all of them losing money. PLEASE Stop throwing away public's money recklessly. The job of the government is to make policies and provide good governance - its is NOT the job of the government to run and operate businesses. -
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Oct 14, 2017 02:04pm
Needs Privitize PIA on urgent Basis
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Oct 14, 2017 02:07pm
How government can improve the condition of national airline when PM himself owns Airblue..!!!!?
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Oct 14, 2017 02:09pm
What a silly joke?
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Oct 14, 2017 02:22pm
This airline is now full of PPP and PMLN worker who are completely corrupted how come a Pakistani national airlines involved in drugs smuggling and the culprits are still not arrested, what is going on this country please close this airline we cant take more embarrassment
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Oct 14, 2017 03:50pm
Why has PIA not been privatised yet? I mean in the developed world who has a state owned carrier anymore?
This money is just wasted on PIA, the inevitable has to happen at some point. Better to get on with it, this is an example of the noon leagues complete failure (or cowardice) to tackle underlying issues.
If they are not in power to fix things, they should not be in power.
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Oct 14, 2017 05:34pm
Which institution is well working in pakistan......
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Oct 14, 2017 07:19pm
PIA created Emirates by providing its A300 aircraft, pilots, cabin crew and airline managers, Emirates first historic flight was EK600 Dubai-Karachi. Today, Emirates is the 'best' airline in the world. PIA's started going down due to political interference, thousands of political jiyalas were given jobs in the airline without any need for them.
PIA's failure in the last ten years, Asif Zardari and Nawaz Sharif are directly responsible. If political interference ends, and the airline is operated by professional managers strictly on merit, it can regain its past glory and become "Great People To Fly With" again.
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Oct 14, 2017 07:34pm
When country own prime minister airline successfully then how Govt airline successful?
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Oct 14, 2017 08:55pm
It is sad to see PIA decline over the years. In the not too distant past, it used to be one of the best. Instead of political point scoring and finger pointing, let us all share ideas for reviving PIA. My recommendation is to gradually withdraw government subsidies over a five year period, right size the staff through attrition, focus on the more profitable sectors while reducing wasteful expenses. These proposals are broad and high level but maybe someone from inside PIA can share specific ideas.
But let's change the discourse from blame to shared responsibility
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Oct 15, 2017 02:55am
Good job vote for the corrupt people and eats the fruit noe, don't cry this is the fruit of the seeds you plug in votes
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Oct 15, 2017 12:59pm
Bangladesh Biman Airlines profits Taka 2.72bn last year.
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