LAHORE – The new PIA MD has so far been unable to put the airline on the route to progress, as the team of ex-MD Ijaz Haroon continues to hold the sway in airlines affairs, said sources on Monday.
Sources said that the failure of business plans over the years to achieve the projected revenue targets are major reasons for the losses. “Ineffective business plans were submitted to EXIM Bank of USA to finance the induction of Boeing 777s over 2001-2003. Those responsible for submitting these business plans have not been held accountable, nor have those been taken to task who negotiated commercial loans at exorbitant interest rates,” said an office-bearer of an association of PIA. He said the protest and hectic efforts made by various associations and employees of PIA to oust former MD seemed to have proved futile as no action has been taken by the new MD till now to rectify the wrongs, nor can such remedial measures be undertaken if the same team of executive directors and general managers continues to hold posts. PIA submitted another business plan to justify the induction of more aircraft over 2009-2010. This business plan was shelved when the government refused to inject adequate financial support or more loans on sovereign guarantees.
Sources said that thereafter another business plan was made by the same team that had submitted earlier failed plans to justify the proposed surrender of key take-off slots and routes to Turk Hava Yollari vide the record of discussion agreement signed on Dec 29, 2010.
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