Another attempt by the Pakistan International Airlines (PIA) to get financial assistance met the same fate, as the Cabinet Committee on Restructuring (CCOR) remained adamant that till their recommendations on making changes in its management structure were not met no financial assistance will be beneficial.
Finance Minister Dr Abdul Hafeez Shaikh chaired the meeting of CCOR which was attended by ministers for petroleum, privatisation, defence, Deputy Chairman Planning Commission and Managing Director PIA and other senior officials.
PIA management, an official source said was seeking financial assistance of Rs20 billion to bring the national flag carrier out of the financial crisis. However, the committee noted that no amount of financial assistance could bring the airline out of financial crisis till its management was not improved. The finance minister observed that the losses to the airline could not be bridged till the cost was controlled and he said that the low cost passengers was an issue which was causing loss to the airline. He stressed upon the revamping of the financial and operational sectors that needed to be identified and rectified. The meeting discussed the strategic restructuring plan of PIA with special reference to injecting financial assistance to the airline. The meeting also deliberated on fuel cost savings, and induction of new aircrafts into the fleet of the airlines with reference to the fleet renewal plan. The meeting decided that the injection of financial assistance in the airline would be further discussed in the coming meeting of the CCOR next week. CCOR is seeking strengthening of the management structure along with greater autonomy to the Board of Directors, hiring of professional management from the market, and implementing an aggressive action plan for austerity in the airlines. Despite efforts of CCOR for the last three years, PIA and Pakistan Railways have failed to improve their performance and their financial woes have increased with each passing day.
Set your house in order if you want money: Cabinet Committee tells PIA
