PIA Records Rs. 38 Billion Loss Due to Grounded Aircraft

Web DeskOctober 6, 20233733 min
PIA Records Rs. 38 Billion Loss Due to Grounded Aircraft

The Pakistan International Airlines Corporation Limited (PIACL) has incurred a loss of Rs. 38 billion due to grounded aircraft, as reported by the Auditor General of Pakistan.

During the audit of the PIACL Engineering Department for the year 2021, it was discovered that two B-777, two A-320A, and one ATR72 aircraft remained grounded due to temporary grounding and scheduled maintenance.

The management had allocated an estimated time for temporary grounding and scheduled maintenance ranging from 19 to 28 days, but this timeline was not adhered to.

According to Section 2.10.3.1 of the Engineering and Maintenance Manual, PIA Engineering and Maintenance are required to meet minimum maintenance requirements and ensure that all maintenance is carried out in accordance with the manufacturer’s documentation and instructions.

Also Read: PIA Refutes Reports of Imminent Closure, Continues Operations

The audit found that the management’s laxity had resulted in the prolonged grounding of aircraft for up to 905 days, causing losses to PIACL and disrupting operational continuity. The matter was reported to the management, and the irregularity was discussed in the DAC meeting.

The management explained that reduced operations, financial constraints, and parts requirements for the operating fleet had led to increased cannibalization from aircraft under heavy maintenance, causing delays in aircraft rollout.

DAC (Departmental Accounts Committee) directed the management to provide relevant documents to the Audit reflecting efforts and justifications for the extended delay. However, no such records were produced by the management during the finalization of the report.

As a recommendation, the Audit suggests implementing the directives of the DAC.

It’s worth noting that the Caretaker Federal Minister for Privatization, Fawad Hasan Fawad, recently informed the World Bank country head that the government’s top priority is to privatize PIA (Pakistan International Airlines).

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