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PIA Loses Billions Every year Due to a Flawed Software: Pakistan International Airline (PIA) has been in trouble due to their poor management of passengers. Scandals like the recent viral video of which a woman cried for her infant’s life while on a PIA flight also hurt the national carrier’s reputation. However, in just a recent time the PIA’s reservation service software for domestic and international flights has become a huge burden for the airline which is now considered as an unwanted accessory.

 

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Sources to Billions Loss

PIA’s software becomes a source of financial loss, according to the several sources. U.S Company which provides services for maintenance of flight management software ‘Sabre’, PIA uses it for reservation of tickets and boarding for around last 17 years.

PIA who first landed with a contract to ‘Sabre’ through Shahid Khaqan Abbasi, former chairman of PIA. During the era of MD Captain Ejaz Haroon, the agreement was renewed for another 10 years while prioritizing the agreement till 2030 via special clause.

Furthermore, PIA is annually paying for the services which the American company never provided. The report has revealed that the failure of Sabre’s software system was due to a small bug which result tin losses worth billions of rupees every few weeks. Just six days ahead, yet another flight schedule were affected because of the faults in the software.

 

Legal Bindings

PIA wants to end to this agreement since the original agreement which of course included handling of estimated 60,000 passengers and 42 aircrafts but the fleets have now been reduced to 32 and the passengers are decreasing day to day. However, there is not yet clause in the agreement about its termination.

The national airline now wants to enter with an agreement to Turkish company and signed a Memorandum of Understanding (MoU) with the Turkish service providers in 2017 and finalized the agreement in the current year.

However, PIA is not able to get rid of the Sabre Company just because of the legal binding of the contract. The issues are now being locked in the higher courts. According to the officials, once PIA is free from Sabre it will save billions of rupees annually.