PIA virtually grounded

PIA virtually grounded – It looks that it is the end of the tether for badly mismanaged and severely loss-making national flag carrier Pakistan International Airlines (PIA). In recent years the airline has now grounded 11 aircrafts, or a third of its fleet, as dearth of funds to procure spare parts to keep them operational is mainly responsible for this state of affairs. As is the national wont, PIA management is now shifting the blame by insisting that higher global oil prices and a weakening exchange rate is primarily responsible for the crisis it finds itself in. PIA’s international operations are substantially curtailed over safety concerns and the growing number of private airlines operating inland have seriously reduced PIA’s clientele. In these circumstances sparing any official money for the airline would be literally throwing it in the bin. Besides, the governmental kitty is virtually empty and cannot afford to financially bailout PIA. The government is so badly shackled financially that it cannot even extend sovereign guarantees to lenders on its behalf due to its commitments to the IMF. Most importantly there appears no point in rescuing the airlines as it is already put on the list of privatising government-controlled enterprises. Moreover, it may not be possible to buckle under union pressure as it would simply be self-defeating. The Weekender