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[size=36]Integrity: $36.5 million in losses as a result of contracting with the British Menzies Company[/size]
Economy| 10:31 - 05/24/2023
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Baghdad - Mawazine News
called on the Federal Integrity Commission, on Wednesday, to review all contracts concluded by Iraqi Airways in the field of ground services with a number of shipping, fuel and catering companies, and the possibility of considering returning them to the company as it was previously.
According to a statement by the Integrity Commission, the Commission's Prevention Department stated, in a report prepared by it about the visits conducted by its field team at the headquarters of the General Company for Iraqi Airways and the meeting with its general manager, that "the company concluded 3 joint operating contracts that are useless with foreign and local companies," indicating That "the first company was granted the right to sell goods and merchandise on board its aircraft, while the second company was contracted to provide air freight services to operate public and private sector flights with a profit rate of (74%) for the benefit of the company amounting to (2,200,000,000) two billion dinars, and (26%) for airlines." The airline company amounted to approximately (750,000,000) million dinars,” noting that “the contracting company carried out an air freight activity to bring (5) shipments of medicines only to the Ministry of Health during the period of the spread of the Corona epidemic, while the third contract was with a Turkish company to provide private aviation and ambulance services.” Air for VIPs.
And the statement added, “In the report, a copy of which was sent to the Prime Minister’s Office, the General Secretariat of the Council of Ministers, the Integrity, Transportation and Communications Committees in the House of Representatives and the Minister of Transport, the department indicated that the contract concluded by the airlines with the British company Menzies to carry out the necessary operations to provide ground services.” The airports of Baghdad and Mosul incurred losses for the airline company amounting to (36,556,976) million dollars, in addition to granting the exclusive concession to provide ground services for a period of (10) years to the company in accordance with the companies and investment laws at a rate of (30%) for the airlines, and (70%) for the British company, in addition to Until the contract took a long time, which led to depriving the airlines of the opportunity to contract with other companies, and the company was late in paying the amount of (6,500,000) million euros to the airlines, representing the value of the contract for the sale of ground equipment that was purchased for the Arab Summit Conference in the year 2012.
The report urged, according to the statement, to “take into account the study prepared by the International Air Transport Association (IATA) regarding reducing the airline’s aircraft models, in order to improve the reality of their condition and the possibility of managing them in an easier way, away from dispersion when contracting for their maintenance, and benefiting from their crews,” noting “multiple The origins, sizes and models of up to (7) types, which led to problems in their management and maintenance, and that the failure to adopt them as the sole national carrier paved the way for the entry of competing companies, pointing out that (18) out of (35) aircraft were stopped due to mismanagement. and planning.”
The report suggested, "Airlines develop a clear business strategy to advance their economic and technical situation, work to improve the quality of services provided, address violations indicative of their performance, reconsider their structure, and reduce job sag, to be able to compete with international companies," noting that " The company's current policy is far from achieving this goal, and the level of service provided is not commensurate with the large number of its employees amounting to (4149) employees, which exceeds the actual need by more than double, according to the evaluation of "IATA", and that its financial revenues barely cover the salaries of its employees, after it was achieving financial revenues big".
The report monitored, "Large debts and loans owed by the company, and the debts incurred by it in favor of the public sector amount to (128,044,330) million dollars and (195,720,582,632) billion dinars, noting that it bore large interests on the loans it obtained from the Rafidain and Rasheed banks since 2012 until now, The interests of the loans she paid amounted to (56,142,750) million dollars, and the rest of them amounted to (67,394,127) million dollars, while the debts in her interest amounted to (18,566,078) million dollars and (3,698,518,895) billion dinars owed by a number of state departments from the year (2004 until 31/3/2023). Noting that there are a number of unused properties belonging to it, which can be used to maximize its resources.
The report recommended, "A commitment to aircraft maintenance according to the schedules specified for each aircraft, to avoid stopping the aircraft, and the technical department resorting to adopting the method of (transferring) the spare parts of some idle aircraft to maintain other aircraft, which leads to their extinction, in addition to contracting with the manufacturer directly." to maintain aircraft and provide spare tools without the need for intermediary companies,” adding that “most of the planes that are out of service are due to their engines malfunctioning, while most of the (Boeing-737) planes have stopped because they did not perform periodic maintenance in a timely manner and left them until their engine operating hours reached A level that exceeds the normal level, which led to severe damage to its engines, and the failure of the landing system in some aircraft, and the cost of its maintenance is one million dollars per plane, and the total amounts needed to repair the faults reach (170,000,000) million dollars.
He suggested "activating joint operation by entering the General Company for Airlines into meaningful contracts to achieve benefit, instead of granting contracts for ground services, subsistence, fuel and freight that were previously provided to companies in exchange for a percentage of (30%) to airlines, and directing the company to work in the field of air freight from By purchasing aircraft designated for this purpose, because it does not own any cargo aircraft.
The report noted, according to the statement, "The project to expand the air freight circuit and make it a shipping village has been halted due to the poor performance of the executing company and the failure to implement contractual obligations," calling for "joining international organizations, and periodically adopting international bulletin prices to determine fuel prices and aircraft maintenance, and the commitment of all Its joints are in the special safety guide after monitoring the continuation of violations of safety and quality standards in some departments at all levels, which contributes to lifting the European ban on them, in addition to updating the automated reservation system, to avoid manipulation and ensure control over all reservations made through agents at home and abroad, and contracting with Certified companies to refuel at foreign airports without resorting to intermediary companies.
The report emphasized, "The importance of adhering to the specified flight schedules after recording a delay in the flight schedules without logical justifications, the late issuance of flight schedules from the commercial department, and the Insurance and Lost and Found Division in coordination with the relevant authorities to overcome the compensation procedures and move away from the routine to stop the compensation of damaged bags." and missing since 2020, which negatively affects the company's reputation," indicating "the high cost of meals provided to passengers and crews." Ended 29/N33
called on the Federal Integrity Commission, on Wednesday, to review all contracts concluded by Iraqi Airways in the field of ground services with a number of shipping, fuel and catering companies, and the possibility of considering returning them to the company as it was previously.
According to a statement by the Integrity Commission, the Commission's Prevention Department stated, in a report prepared by it about the visits conducted by its field team at the headquarters of the General Company for Iraqi Airways and the meeting with its general manager, that "the company concluded 3 joint operating contracts that are useless with foreign and local companies," indicating That "the first company was granted the right to sell goods and merchandise on board its aircraft, while the second company was contracted to provide air freight services to operate public and private sector flights with a profit rate of (74%) for the benefit of the company amounting to (2,200,000,000) two billion dinars, and (26%) for airlines." The airline company amounted to approximately (750,000,000) million dinars,” noting that “the contracting company carried out an air freight activity to bring (5) shipments of medicines only to the Ministry of Health during the period of the spread of the Corona epidemic, while the third contract was with a Turkish company to provide private aviation and ambulance services.” Air for VIPs.
And the statement added, “In the report, a copy of which was sent to the Prime Minister’s Office, the General Secretariat of the Council of Ministers, the Integrity, Transportation and Communications Committees in the House of Representatives and the Minister of Transport, the department indicated that the contract concluded by the airlines with the British company Menzies to carry out the necessary operations to provide ground services.” The airports of Baghdad and Mosul incurred losses for the airline company amounting to (36,556,976) million dollars, in addition to granting the exclusive concession to provide ground services for a period of (10) years to the company in accordance with the companies and investment laws at a rate of (30%) for the airlines, and (70%) for the British company, in addition to Until the contract took a long time, which led to depriving the airlines of the opportunity to contract with other companies, and the company was late in paying the amount of (6,500,000) million euros to the airlines, representing the value of the contract for the sale of ground equipment that was purchased for the Arab Summit Conference in the year 2012.
The report urged, according to the statement, to “take into account the study prepared by the International Air Transport Association (IATA) regarding reducing the airline’s aircraft models, in order to improve the reality of their condition and the possibility of managing them in an easier way, away from dispersion when contracting for their maintenance, and benefiting from their crews,” noting “multiple The origins, sizes and models of up to (7) types, which led to problems in their management and maintenance, and that the failure to adopt them as the sole national carrier paved the way for the entry of competing companies, pointing out that (18) out of (35) aircraft were stopped due to mismanagement. and planning.”
The report suggested, "Airlines develop a clear business strategy to advance their economic and technical situation, work to improve the quality of services provided, address violations indicative of their performance, reconsider their structure, and reduce job sag, to be able to compete with international companies," noting that " The company's current policy is far from achieving this goal, and the level of service provided is not commensurate with the large number of its employees amounting to (4149) employees, which exceeds the actual need by more than double, according to the evaluation of "IATA", and that its financial revenues barely cover the salaries of its employees, after it was achieving financial revenues big".
The report monitored, "Large debts and loans owed by the company, and the debts incurred by it in favor of the public sector amount to (128,044,330) million dollars and (195,720,582,632) billion dinars, noting that it bore large interests on the loans it obtained from the Rafidain and Rasheed banks since 2012 until now, The interests of the loans she paid amounted to (56,142,750) million dollars, and the rest of them amounted to (67,394,127) million dollars, while the debts in her interest amounted to (18,566,078) million dollars and (3,698,518,895) billion dinars owed by a number of state departments from the year (2004 until 31/3/2023). Noting that there are a number of unused properties belonging to it, which can be used to maximize its resources.
The report recommended, "A commitment to aircraft maintenance according to the schedules specified for each aircraft, to avoid stopping the aircraft, and the technical department resorting to adopting the method of (transferring) the spare parts of some idle aircraft to maintain other aircraft, which leads to their extinction, in addition to contracting with the manufacturer directly." to maintain aircraft and provide spare tools without the need for intermediary companies,” adding that “most of the planes that are out of service are due to their engines malfunctioning, while most of the (Boeing-737) planes have stopped because they did not perform periodic maintenance in a timely manner and left them until their engine operating hours reached A level that exceeds the normal level, which led to severe damage to its engines, and the failure of the landing system in some aircraft, and the cost of its maintenance is one million dollars per plane, and the total amounts needed to repair the faults reach (170,000,000) million dollars.
He suggested "activating joint operation by entering the General Company for Airlines into meaningful contracts to achieve benefit, instead of granting contracts for ground services, subsistence, fuel and freight that were previously provided to companies in exchange for a percentage of (30%) to airlines, and directing the company to work in the field of air freight from By purchasing aircraft designated for this purpose, because it does not own any cargo aircraft.
The report noted, according to the statement, "The project to expand the air freight circuit and make it a shipping village has been halted due to the poor performance of the executing company and the failure to implement contractual obligations," calling for "joining international organizations, and periodically adopting international bulletin prices to determine fuel prices and aircraft maintenance, and the commitment of all Its joints are in the special safety guide after monitoring the continuation of violations of safety and quality standards in some departments at all levels, which contributes to lifting the European ban on them, in addition to updating the automated reservation system, to avoid manipulation and ensure control over all reservations made through agents at home and abroad, and contracting with Certified companies to refuel at foreign airports without resorting to intermediary companies.
The report emphasized, "The importance of adhering to the specified flight schedules after recording a delay in the flight schedules without logical justifications, the late issuance of flight schedules from the commercial department, and the Insurance and Lost and Found Division in coordination with the relevant authorities to overcome the compensation procedures and move away from the routine to stop the compensation of damaged bags." and missing since 2020, which negatively affects the company's reputation," indicating "the high cost of meals provided to passengers and crews." Ended 29/N33
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