A subcommittee of the National Assembly has completed an investigation into the decline of PIA, concluding that years of policy shortcomings, financial difficulties, and inconsistent management played a major role in weakening the national airline. The findings have been submitted to the National Assembly Secretariat as part of a report prepared by the Standing Committee on Privatisation’s subcommittee, headed by Sehar Kamran.
According to the report, several long-term issues contributed to PIA’s operational and financial challenges. Among the major concerns highlighted were high taxes on the purchase of new aircraft and spare parts, which increased operating costs and limited the airline’s ability to modernize its fleet. The report also criticized Pakistan’s Open Skies Policy, stating that extensive traffic rights granted to foreign airlines significantly reduced PIA’s share of the international aviation market from nearly 50 percent to around 20 percent.
The report further noted that PIA is operating with an aging fleet. Out of 30 aircraft, only 19 are currently operational. It also stated that just six of the airline’s 12 Boeing 777 aircraft remain in service, while the remaining planes have been grounded because of financial constraints. In addition, temporary arrangements made for the airline’s premium London route reportedly resulted in losses of approximately Rs2.88 billion.
Despite implementing a voluntary separation scheme, PIA still employs around 215 staff members per aircraft, a figure the committee described as significantly higher than international industry standards. The report also blamed frequent changes in leadership, weak governance, and inconsistent policies between 2008 and 2018 for the airline’s continued decline.
The committee further stated that the 2020 controversy surrounding pilots’ licenses caused severe damage to PIA’s international operations, leading to an estimated $600 million in losses, the suspension of flights to Europe by the European Union Aviation Safety Agency (EASA), and the grounding of nearly 150 pilots.
The report added that the depreciation of the Pakistani rupee and growing external borrowing have increased PIA’s liabilities to more than Rs740 billion. It recommended forming an inquiry commission to investigate the 2020 pilots’ license issue and urged the government to review the Open Skies Policy to help PIA compete more effectively with foreign airlines.
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