Pakistan’s national carrier’s losses mount

Pakistan International Airlines, the national flag carrier of Pakistan, posted a net loss of $433m for 2016, a jump of 36% over the loss of $310m incurred in the previous year, a media report said. The state-run carrier’s accumulated losses continued to soar mainly due to non-stop flights on several loss-making routes, according to a bourse filing. PIA continued to fly on several loss-making routes to Europe and the US. PIA has decided in principle to temporarily suspend flights to and from New York, said the adviser to Prime Minister on Aviation, Sardar Mehtab Ahmad Khan. PIA was not booking seats for the New York flights for November onwards. The carrier has also lost much business on domestic routes to international airlines under the open skies policy of the government. The government has allowed Gulf airlines, particularly UAE carriers, to operate to and from multiple airports in Pakistan, which is driving up PIA losses. The airline has developed a new business plan under new CEO Musharraf Rasool Cyan. The plan, besides giving a new business strategy, would also demand a bailout package next week.<br/>