PIA Incurs Rs. 38 Billion Loss On Account of Grounded Aircraft

The loss-making Pakistan International Airlines Corporation Limited (PIACL) has borne a Rs. 38 billion loss on account of grounded aircraft.

According to the Auditor General Pakistan Report, during an audit of PIACL Engineering Department for the year 2021, it was observed that aircraft two B-777,  two A-320A, and one ATR72 remained grounded due to temporary grounding and scheduled maintenance.

As per the Maintenance Plan, management allocated estimated time for temporary grounding and scheduled maintenance of 19 to 28 days, which were not followed.

According to Section 2.10.3.1 of the Engineering and Maintenance Manual, PIA Engineering and Maintenance shall respect minimum maintenance requirements and ensure that all maintenance is carried out in conformance with the manufacturer’s documentation/ instructions.

The audit was of the view that slackness on the part of management resulted in the prolonged grounding of aircraft for up to 905 days which resulted in loss to PlACL and created hurdles in operational continuity. The matter was reported to the management and the irregularity was discussed in the DAC meeting.

The management informed that reduced operations, financial constraints, and parts requirements on the operating fleet resulted in increased cannibalization from aircraft under heavy maintenance which caused delays in aircraft rollout.

DAC directed the management to provide relevant documents to Audit reflecting efforts/justifications for the extended delay. However, no record was produced by the management till finalization of this report. Audit recommends implementation of the DAC directives.

Recently, the Caretaker Federal Minister for Privatization Fawad Hasan Fawad has informed the World Bank country head that the government’s foremost priority is to privatize PIA.



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