Airlines

PIA’s Financial Turmoil: Government Takes Steps Towards Privatization

PIA's Pre-Privatization Plan: Selling Aircraft Spare Parts

A severe financial issue that has been impacting Pakistan International Airlines (PIA) operations and services for years. The primary shareholder in the airline, the government, has been fighting to keep it solvent with regular infusions of money totaling billions of Pakistani rupees. But the government just recently said that it would privatize the airline and sell its stock to individual investors.

Customers and passengers of PIA have been impacted and irritated by the frequent schedule changes brought on by the airline’s financial problems. Sources within PIA claim that due to the airline’s failure to pay Pakistan State Oil (PSO) for fuel supply, flights have been canceled and delayed.

Pakistan Steps to Privatizing PIA and Outsourcing Airports Under IMF Agreement(Opens in a new browser tab)

Lack of available aircraft forced the cancellation of at least five domestic flights, while delays of up to two hours were experienced by additional flights. The flights in issue were those linking the nation’s biggest cities.

The PIA financial crisis has resulted in a lack of finances to pay for PSO fuel, resulting in numerous aircraft being grounded. The Federal Ministry of Finance has decided to stop subsidizing the losing airline and privatize it and has requested a privatization plan from both the Privatisation Division and the PIA management.

Pakistan International Airlines reduces Islamabad-Beijing fares by 30%(Opens in a new browser tab)

The interim finance minister has stated that the national carrier was suffering staggering losses of at least Rs 12 billion every month. She claimed that in order to survive, PIA has repeatedly chosen to take loans totaling Rs 260 billion from commercial banks that were backed by the government.

The average monthly cost for PIA is Rs 34 billion, whereas its average monthly revenue is Rs 22 billion. As a result, it has an unhealthy deficit that gets worse with each passing month, according to economist Talib Fareedi. The current overall deficit of PIA is over Rs. 740 billion. This startling amount has forced the finance ministry to immediately implement a privatization proposal. And suggested intends to privatize the state-owned company as soon as possible.

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Airlines

A Costly Mistake: Passenger Pays for Fuel After Disruptive Flight

A Western Australian man has learned a costly lesson after his unruly behavior on a flight resulted in the aircraft having to turn back. The passenger was ordered to pay over $5,000 in fuel costs, along with a significant fine, for causing the plane to divert.

The incident occurred in September 2023 when the man, who was not publicly named, became disruptive on a flight from Perth to Sydney. Due to his behavior, the pilot was forced to turn the plane around and return to Perth, which required dumping fuel to land safely.

The passenger pleaded guilty to charges of disorderly behavior and non-compliance with safety instructions. As a result, he was ordered to pay $8,630 to the airline to cover the cost of the wasted fuel and was also fined $6,055. This combined penalty of over $11,000 is a stark reminder of the severe consequences of disruptive behavior on flights.

While this is not a typical punishment, other cases of in-flight misconduct have resulted in hefty fines. One passenger in the United States was fined over $40,000 for a series of offenses, including bringing their own alcohol on board, being intoxicated, attempting to smoke marijuana, and sexually assaulting a flight attendant.

The Australian Federal Police emphasized that disruptive behavior on flights will not be tolerated. They warned that individuals who cause disturbances can face significant financial penalties and legal consequences. The case of the Western Australian passenger serves as a clear message that obeying airline staff and adhering to safety regulations is essential for a smooth and safe flight.