Govt looks for a fix as PIA auditors paint bleak picture of airline’s financials | Pakistan Today

Govt looks for a fix as PIA auditors paint bleak picture of airline’s financials

The federal government has shortlisted Hildenbrand Bernd, a German national, who is expected to take over as COO of PIA in the next few days. Bernd has worked at Lufthansa in their Operations Division and was based in Malaysia looking after their cargo operations which were closed. Thereafter he was working in a Malaysian aviation company before being hired by PIA.

PIA’s external auditors Enrst & Young Ford Rhodes Sidat Hyder/KPMG Taseer Hadi & Co said in their Half Yearly Report for the period Jan to June 2015 that PIA’s liabilities exceed its total assets by Rs 169.443 billion. These conditions along with other factors disclosed in the report indicate the “existence of a material uncertainty which may cast significant doubt on the Corporation’s ability to continue as a going concern”. The report, however, clarified that it is a review by auditors and not an audit opinion in accordance with international standards on auditing and that it is based on information provided and qualified by PIA, “Our conclusion is not qualified in respect of this matter.”

PIA’s total accumulated loss as of June 30, 2015 was Rs 240.863 billion and by Sept 30, 2015 it had increased to Rs 247.414 billion.

PIA’s total loss after taxation for Jan to Sept 2015 is Rs 20.552 billion compared with Rs 22.299 billion for the corresponding period of 2014. However, in this period PIA revenues declined by 8.7% as compared to same period in 2014.

As a result of the drop in fuel prices, PIA’s fuel bill decreased by 43 per cent for Jan to Sept 2015. The total fuel cost from Jan to Sept 2015 was Rs 21.678 billion compared with Rs 37.839 billion in fuel expenses during Jan to Sept 2014.

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