ISLAMABAD: The loss-hit Pakistan International Airline (PIA's) plans to expand its fleet with the purchase of 40 new planes over the next five years, Defence Minister, Ahmad Mukhtar, said on Thursday.
Ahmad Mukhtar told parliament that the planes were needed to arrest PIA's growing deficit.
The state-run airline currently services domestic and international routes with a fleet of Boeing 777, Boeing 747, Airbus A310, Boeing 737 and ATR-42 aircraft. "If PIA does not buy new planes, it will have to close down," Mukhtar said. "When we have the new aircraft the deficit will come down as we will be able to increase the number of flights."
Mukhtar said the defence ministry would present the plan to the federal cabinet this month, but did not give further details of the purchases. He said that PIA was not receiving government subsidy, but had taken out bank loans that it is currently repaying.
PIA suffered a loss of $135.8 million in the first nine months of the year, according to its third-quarter financial report posted on the airline's website. Accumulated losses stood at Rs88 billion ($1 billion).
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