Pakistan injects Rs. 17bn to keep crashing airlines afloat

Pakistan injects Rs. 17bn to keep crashing airlines afloat
In this file photo, Pakistan International Airlines (PIA) plane taxies before take-off from Karachi International Airport in Karachi on April 21, 2010. (AFP)
Updated 15 November 2018

Pakistan injects Rs. 17bn to keep crashing airlines afloat

Pakistan injects Rs. 17bn to keep crashing airlines afloat
  • Continuing liquidity crisis in Pakistan International Airlines (PIA) may lead to grounding of the fleet
  • Rs 17 billion bailout package will keep PIA afloat only for another two months

ISLAMABAD: The semi-state-owned Pakistan International Airlines (PIA) was approved Rs. 17.02 billion by the government in the form of “sovereign guarantees” and other financial aid — a second bailout in the space of six months, the PIA spokesperson confirmed to Arab News on Tuesday.
PIA, a profitable airline which became a burden on the country’s already stressed exchequer, has been dying a slow death for years.
“The government did agree to park the interest till we get some respite,” but since the approved document has not been shared with the airline management, Mashood Tajwar, the struggling carrier’s general manager and official spokesman, was unable to provide further details.
PIA had amassed a colossal debt of $3.33 billion (Rs. 406 billion) up from last year’s $2.92 billion in July, and the fresh bailout from the economic coordination committee headed by Finance Minister Asad Umar is part of Prime Minister Imran Khan’s plan to attempt nursing the airline back to health before considering privatization. Khan also holds the ministerial portfolio for aviation division.
The outgoing government tried to privatize the airline but met legal hitches and criticism over its attempt to sell what once was a national asset and pride of the country.
The national flag carrier has a new chief executive and president appointed by the premier. Umar is optimistic that under the “energetic and enthusiastic” air marshal Arshad Malik, PIA will “experience a turnaround.”
Tajwar clarified that the latest injection or “support” is not necessarily all bailout. He told Arab News that the approval empowers the airline to “borrow from banks” against guarantees from the Ministry of finance. Of the Rs.17.02 billion, Rs.10 billion is sovereign guarantee and a further Rs. 40.8 billion has been allocated in the form of cash for PIA by the ministry.
However, continuous foreign loans taken by the airline have added to its woes and made its situation worse. PIA immediately owes $125.84 million to foreign lenders.The sharp decline of Pakistan’s currency has made debt servicing harder and devaluation further affected the previous financial support package by the government.
In May, the apex court objected and barred the airline from changing livery on its planes to the country’s national animal, the Markhor (the screw horn goat), part of its rebranding and repositioning strategy. The decision resulted in further loss to PIA.
The airline has suffered through operating financially unsustainable routes, grounding of aircraft because of technical problems, overstaffing, incompetent employees, union strikes, inadequate fleet, and wrong strategies. The open sky policy of the government allowed foreign airlines to take a large chunk of PIA’s business, further driving the struggling carrier into the ground.
The airline competition is so fierce that it would take several years before signs of a break even surface, said the spokesperson. PIA is in dire need of strategic planning and quick revenue generation if its management hopes to ward off privatization in the future by the government which is currently optimistic it can help to resurrect it.
But aviation Industry expert Tahir Imran told Arab News that when the airline witnessed a decline in its losses some years ago, it made the fatal decision to increase its passenger capacity by inducting larger aircrafts instead of enhancing its flight frequency by purchasing smaller more efficient and economical aircrafts. This, he said was the final nail in PIA’s coffin.


China rescuers drill new ‘lifelines’ to trapped gold miners

China rescuers drill new ‘lifelines’ to trapped gold miners
Updated 19 January 2021

China rescuers drill new ‘lifelines’ to trapped gold miners

China rescuers drill new ‘lifelines’ to trapped gold miners
  • Twenty-two workers have been stuck 540 meters underground near Yantai in east China’s Shandong province

BEIJING: Chinese rescuers drilled several fresh holes Tuesday to reach at least 12 gold miners trapped underground for nine days, as dwindling food supplies and rising waters threatened their survival.
Twenty-two workers have been stuck 540 meters (1,750 feet) underground at the Hushan mine near Yantai in east China’s Shandong province after an explosion damaged the entrance.
After days without any signs of life, some of the trapped miners managed to send up a note attached to a metal wire which rescuers had dropped into the mine on Sunday.
Pleading for help, the handwritten message said a dozen of them were alive but surrounded by water and in need of urgent medical supplies.
Several of the miners were injured, the note said.
A subsequent phone call with the miners revealed 11 were in one location 540 meters below the surface with another – apparently alone – trapped a further 100 meters down.
The whereabouts and condition of the other 10 miners is still unknown.
Rescuers have already dug three channels and sent food, medicine, paper and pencils down thin shafts – lifelines to the miners cut into the earth.
But progress was slow, according to Chen Fei, a top city official.
“The surrounding rock near the ore body is mostly granite... that is very hard, resulting in slow progress of rescue,” Chen told reporters on Monday evening.
“There is a lot of water in the shaft that may flow into the manway and pose a danger to the trapped workers.”
Chen said the current food supply was only enough for two days.
Rescuers drilled three more channels on Tuesday, according to a rescue map published on the Yantai government’s official twitter-like Weibo account.
A telephone connection has also been set up.
Footage from state broadcaster CCTV showed dozens of rescuers clearing the main return shaft, while cranes and a massive bore-hole drill was used to dig new rescue channels to reach the trapped miners.
Rescue teams lost precious time since it took more than a day for the accident to be reported, China Youth daily reported citing provincial authorities.
Both the local Communist Party secretary and mayor have been sacked over the 30-hour delay and an official investigation is under way to determine the cause of the explosion.
Mining accidents are common in China, where the industry has a poor safety record and regulations are often weakly enforced.
In December, 23 workers died after being stuck underground in the southwestern city of Chongqing, just months after 16 others died from carbon monoxide poisoning after being trapped underground at another coal mine in the city.