The move is aimed to offer improved service to the passengers
The national carrier, Pakistan International Airlines (PIA), again came under the limelight as the company signed a multi-tranche financing facility worth $130 million, in a bid to fund its every day’s expenditures. The main of the company behind signing behind arranging a financing facility is to offer improved service to its passengers.
“The facility will be by PIA for its general working capital requirements and improvement in passenger services,” spokesman for the national carrier said.
Subsequently, United Bank Limited (UBL), National Bank of Pakistan (NBP) and Credit Suisse Singapore Office are the lenders that will be offering financial support to the national carrier. As per the spokesman of PIA, “The facility reflects the confidence and trust of the international financing institutions in the operations of PIA.”
Moreover, PIA had been in hot waters for quite some time now. The cash-strapped national carrier recently announced that its losses increased by 2.3% to Rs 267.56 billion during the recent quarter ended March 31st. Adding to that, during the fiscal year 2015, the loses piled up to approximately Rs 32.13 billion. Therefore, in order to overcome the losses, the company is working hard to expand its flying operating in several domestic and international regions.
The company announced earlier this week that it is evaluating an order for Boeing and Airbus aircrafts in a bid to upgrade its ageing fleet. Several reports have been making rounds that the national carrier is planning to buy Boeing 777X, Airbus A350 and A330 variants.
For the unfamiliar, the company currently has a fleet of 38 Airbus and Boeing aircrafts and three A310 models which will be retired by the end of this year. Adding to that, the company is also planning to buy the jets directly from the manufacturers and finance the order through a sale and leaseback arrangement.