Crisis worsens as PIA has to cancel 45 more flights
Business
Worsening state of affairs coincide with IMF pressure to privatise loss-making entities
LAHORE (Dunya News/Web Desk) – The persistent financial crunch means disruption in operations has become a routine for the PIA – the national flag carrier – as another 45 flights were either cancelled or delayed on Tuesday amid its ability to ensure fuel supply.
At the same time, the current crisis comes as the case for the privatisation of state-owned enterprises is strengthening under the IMF conditions aimed at reducing fiscal deficit as these loss-making entities have been proving a burden on national exchequer.
The rupee devaluation and rising fuel costs have played a major role in the current financial crisis. However, PIA has remained dependent on the government bailouts for decades after its failure to develop a sustainable business model that could expand its coverage and attract more passengers both at domestic and international levels.
In fact, the national flag carrier has greatly reduced the number of destination on international routes while the PIA plane crash in Karachi and the controversy regarding pilots during the PTI government further complicated the affairs through the ban on PIA flights imposed by the European Union's Aviation Safety Agency (EASA).
On Monday, both domestic and international flights have again been affected with Doha, Riyadh, Abu Dhabi and Damam being the most prominent destinations.
At the same time, those living in the smaller towns and cities in the far-flung regions of Pakistan are also facing great hardships as people of places like Turbat, Skardu and Gilgit prefer air travel to save time and avoid fatigue.
Meanwhile, the disruption in flight operations is badly affecting the PIA in terms of revenue generation as many of the cancelled flights cover the Middle East region which offers most profitable routes thanks of the millions of expat Pakistanis working in these wealthy countries.
This trend means more and more passengers will opt to other airlines for better service as the affluent Pakistanis are already using the foreign operators including Europeans and those which are based in the UAE, Qatar or Saudi Arabia.
