The chief executive (CEO) of Pakistan International Airlines (PIA) Bernd Hildenbrand has called upon the government to assist the national carrier in fighting a price war with deep-pocketed Gulf airlines, including putting restrictions on the number of flights they can operate in its home market.
Hildenbrand had recently been placed on the Exit Control List (ECL), barring him from travelling while the government carried out investigations to ascertain lease costs of an aircraft deal.
Hildenbrand, however, denies any wrongdoing, claiming that the national carrier is incurring losses worth Rs3.1bn on a monthly basis while market share continues to increase for airlines such as Emirates and Etihad Airlines, benefitting from a surge in demand from a country with a population of nearly 200 million people.
Hildenbrand further adds that it is difficult for PIA to compete with its MiddleEastern competitors which offer better services at cheaper rates while PIA still struggles to modernise its existing fleet owing to a lack of funds.
PIA, therefore, needs assistance from the government, including possibly putting “some limitations on the open-sky policy”, he stated, alluding to the aviation’s service agreements with other countries.
“I am not against competition, but unlimited competition is also not possible,” Hildenbrand stressed.
Hildenbrand revealed that PIA’s total debt accumulated to Rs186b at the end of 2016 and has sought help from the authorities to take measures to support the airline in its recovery.
He stated that it would take at least three years to return the company to profitability and to transform PIA’s fortunes would take even longer.
“What went wrong in 25 years you don’t change in half a year. Impossible,” he added.
