aPIA lost Rs 4.4 billion in 2005, Rs 12.8 billion in 2006 and Rs13.6 billion in 2007. That is a lot of money, but the whopper with extra cheese was delivered in 2008. More than Rs. 38.5 billion worth of losses last year means that [/url]PIA is officially the kind of massive failure that makes Pakistan's FATA strategy and RBS's purchase of ABN Amro look like roaring success stories. Even in 2009 rupees, PIA's 2008 losses come to almost $500 million. Half a billion dollars. OMG !
(An increasingly common sight as the democracy is set to take its revenge)
A good share of the almost 8,000 jiyalas that are being reinstated by the government to the positions that were terminated in 1996 are going to come back to PIA
Airline industry standard is 150 employees per aircraft for successful operation. Whereas, PIA has 440+ employees per aircraft. USA's most successful airlines, Southwest Airlines with a fleet of over 500 aircraft had less than 70 employees per aircraft in year 2007.
TWO PROBLEMS OF PIA
- The extra number of employees per aircraft=more corruption, inefficiency, smaller pay scale, more expenditure & less profit.
Financial Statements of PIA seem to base on "Creative Accounting". The same reason for which ENRON and SATYAAM etc went bankrupt.