‘PIA to suffer Rs1b loss, if demands of aircraft engineers met’
By Uzma Babar

ISLAMABAD—Pakistan Intentional Airline (PIA) will have to face loss amounting to Rs. 1 billion annually if it approved incentives and salary package of aircraft engineers.
Seven new airbuses are being introduced in air fleet of PIA which would be operationalized till 2009, said Spokesman PIA while addressing the Press conference here at local hotel on Tuesday.
The Spokesman added that PIA has obtained loan worth $ US 532 million from ABN amro bank during month of May this year sothat Boeing 777 and 300 IR could be inducted in PIA fleet.
The airline, the spokesman said, has also acquired loan amounting to $ US 472 million from export and import Bank USA under head of 12 years overturn period having also commercial facility of $ US 62 million for 7 years.
International institutions while lauding the performance has awarded PIA with certificates, the spokesman said, adding that, the IATI Operational Safety Audit Certificate of Canada will effective till June 2009. PIA has also got European Civil Aviation Agency Certificate.
The PIA will reduce duration of its air fleet from 12 years to 10 years during upcoming five years, the spokesman hoped, as we have inducted seven new (ATR-42) planes by changing all old Foker planes.
The administration had increased salary of all aircraft engineers and management upto 35 percent in 2006 and 10 percent in January current year on merit basis, the spokesman disclosed.
The department will have to face loss of Rs. 1 billion if demand of aircraft engineers is approved, as the expenditure spent on employees under the head of salary stand 17 to 18 percent of overall budget.
Answering to a question, the spokesman categorically stated that no decision has still been taken to privatize hotels of PIA in USA and France. The decision has to be taken by the Government in this respect, the spokesman clarified.