PIA claim of 30% revenue rise, a debatable issue

961

Amraiz Khan

Lahore
Steps taken by PIA to cut Operating Costs by almost 15-19% by relocating Flight Operation base to Islamabad, where there is enough vacant space to park aircraft and carry out routine maintenance and checks will reflect in the financial year 2019-20. Almost 55% of PIA revenue is generated from sales in foreign countries in hard foreign exchange. PIA management claim of 30% rise in revenue during period January to June 2019 as compared to same corresponding period in 2018 is debatable. On 31 January 2018 PKR to USD exchaange rate was Rs. 110.811 while on 31 January 2019 the rate was Rs 138.74. Similarly the PKR to USD rate on 30 June 2018 was Rs 121.73 as compared to Rs 163.7 on 30 June 2019. The Average Devaluation comes to about 29.8%. PIA International and major High Yield Domestic route fares are based on USD, the 30% Rise in PKR Revenue reflects no significant increase.