Wednesday, September 27, 2023

What are the reasons behind PIA's financial crisis?

 PIA's financial crisis is caused by a combination of factors, including:

  1. Competition from emerging regional airlines
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  2. Mismanagement
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  3. Insufficient profitability
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  4. Staff overburden
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  5. Corruption
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  6. Political interference
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  7. Poor governance
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  8. Uncontrolled fluctuations in the value of the national currency
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  9. Soaring costs of fuel
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  10. Dependency on foreign currency
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  11. Accumulated debts
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  12. Overdue lease payments
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  13. Failure to pay for spare parts
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  14. Lack of funds
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These factors have led to PIA's debt and liabilities standing at Rs 743 Billion ($2.50 Billion), which is five times more than the total value of its assets
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 The airline's losses for the last financial year (2022-23) stood at Rs 86.5 billion ($291 Million) 
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 PIA has grounded 11 aircraft due to lack of funds to buy spare parts, and the national flag carrier is facing serious financial challenges
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