Key Takeaways
- A National Assembly subcommittee report identifies policy failures and financial constraints as key factors in Pakistan International Airlines' decline.
- The report recommends the formation of an inquiry commission to investigate a 2020 pilots’ license controversy.
- PIA’s share of the international market has dropped from around 50% to just 20% due to the Open Skies Policy.
A National Assembly subcommittee has released a report detailing the policy decisions that have significantly impacted Pakistan International Airlines (PIA), highlighting years of financial constraints, inconsistent management, and regulatory issues as major contributors to its decline.
The report, submitted to the National Assembly Secretariat by Sehar Kamran, identifies heavy taxes on aircraft purchases and spare parts as key factors in weakening PIA’s financial position. It also points out that Pakistan’s Open Skies Policy has caused significant operational and commercial losses, reducing PIA’s market share from around 50% to just 20%.
The committee further noted that only 19 of PIA's 30 aircraft are currently operational, with six Boeing 777s grounded due to financial constraints. Additionally, the report states that temporary arrangements for PIA’s premium London service resulted in losses of Rs. 2.88 billion.
The subcommittee also criticized frequent leadership changes and poor governance between 2008 and 2018, attributing these factors to the airline's continued decline. It specifically highlighted a 2020 statement by the then aviation minister regarding pilots' licenses as causing severe damage to PIA’s international operations, resulting in losses of around $600 million.
The report further noted that the depreciation of the Pakistani rupee and external borrowing have pushed PIA's total liabilities to more than Rs. 740 billion. Among its recommendations, the subcommittee called for an inquiry commission to investigate the pilots’ license controversy and urged the government to immediately review the Open Skies Policy.
In response to these findings, the report suggests that the government should take immediate action to address these issues, including reviewing the Open Skies Policy and forming a commission to investigate the 2020 pilots' license controversy. The recommendations aim to ensure PIA competes more effectively with foreign airlines on an equal footing.
The National Assembly subcommittee’s report underscores the urgent need for policy changes and financial reforms to revive Pakistan International Airlines, which plays a crucial role in the country's aviation sector.
