Airbus A380 a Magnificient plane ideal for PIA

[AZADPAKISTAN2009]

Here you go, if haven't seen an airline ticket
Date Departure Arrival Flight Duration Cabin
Tue 4 Feb 21:20Chicago, O'Hare International 13:10 +1 Munich

LH435 28h35 Economy (L)
Wed 5 Feb 21:45Munich 15:55 +1 Shanghai , Pudong International

LH726 Economy (L)
Mon 17 Mar 23:45Shanghai, Pudong International 05:10 +1 Munich

LH727 27h10 Economy (K)
Tue 18 Mar 08:00Munich 09:10 Frankfurt

LH095 Economy (K)
Tue 18 Mar 10:35Frankfurt 13:55 Chicago , O'Hare International

LH430 Economy (K)
Total Price
Fare
(per person) Taxes, fees and carrier charges
(per person) Passengers Total
800.00 + 755.71 x 1 Adult = $ 1555.71
Total Price for all passengers = $ 1555.71

Well your listing is some what confusing.as noone pays that much tax. Only executives may lie in reports to claim all the revenue went into Fuel or Taxes lol in reality customers pay for extra tax, or people looking for bail outs for free

Fuel would impact but government can help subsidize or reduced rate fuel. Other option is PIA can buy fuel and its profit will get marginally less

Well the discussion is truly about Pakistani Passengers paying 1500-2000 USD for trips to Pakistan or more , yes some would prefer to travel in Class and enjoy extra comfort for 2500 tickets paid to PIA.

Now the argument that well “Taxes” take all the profit out its not substantial in anyway as you can go to major carriers and see their prices are extremely high and they also charge mega bucks for your trip

Example:

Cathy Pacific (East Coast – Karachi) 32 hour trips
Economy Core - USD 1,799.40
Economy Standard - USD 2,499.40
Economy Flex - USD 7,048.40
Premium Economy - USD 2,844.40
Premium Economy Flex - USD 8,048.80

Cathay Pacific's instructions when you go book your flight
"Additional airline fees for baggage may apply. The baggage policies of the following carrier apply to this itinerary and are available on the following webpage. "



Another leading Carrier (Very Renounced)
East Coast – Karachi (24 HOUR lol)
FARE USD 2253.00 + Taxes, fees & charges USD 121.20 (Cheapest class)

They also charge the Taxes & fees separately after purchase price is displayed.


Conclusion:

• Every one charges taxes and fees extra and customers know it when they place a purchase request.
• A380 plane offers more seats, thus cheaper price to consumer & also more passengers for PIA.
• More comfort
• Taxes and extra fees are separate and not that high
  
• Most time when you try to book flights on PIA its always full

This is the only answer to PIA's passenger and revenue problem

In 1 Trip you use same amount of fuel as conventional plane but you are transporting 200-300 extra passengers !!! That is a big revenue gain


With 800 seat on plane , you can run special discounts to attract new customers

 

[crazyking]

Well your listing is some what confusing.as noone pays that much tax. Only executives may lie in reports to claim all the revenue went into Fuel or Taxes lol in reality customers pay for extra tax, or people looking for bail outs for free

Fuel would impact but government can help subsidize or reduced rate fuel. Other option is PIA can buy fuel and its profit will get marginally less

Well the discussion is truly about Pakistani Passengers paying 1500-2000 USD for trips to Pakistan or more , yes some would prefer to travel in Class and enjoy extra comfort for 2500 tickets paid to PIA.

Now the argument that well “Taxes” take all the profit out its not substantial in anyway as you can go to major carriers and see their prices are extremely high and they also charge mega bucks for your trip

Example:

Cathy Pacific (East Coast – Karachi) 32 hour trips
Economy Core - USD 1,799.40
Economy Standard - USD 2,499.40
Economy Flex - USD 7,048.40
Premium Economy - USD 2,844.40
Premium Economy Flex - USD 8,048.80

Cathay Pacific's instructions when you go book your flight
"Additional airline fees for baggage may apply. The baggage policies of the following carrier apply to this itinerary and are available on the following webpage. "



Another leading Carrier (Very Renounced)
East Coast – Karachi (24 HOUR lol)
FARE USD 2253.00 + Taxes, fees & charges USD 121.20 (Cheapest class)

They also charge the Taxes & fees separately after purchase price is displayed.


Conclusion:

• Every one charges taxes and fees extra and customers know it when they place a purchase request.
• A380 plane offers more seats, thus cheaper price to consumer & also more passengers for PIA.
• More comfort
• Taxes and extra fees are separate and not that high
  
• Most time when you try to book flights on PIA its always full

This is the only answer to PIA's passenger and revenue problem

In 1 Trip you use same amount of fuel as conventional plane but you are transporting 200-300 extra passengers !!! That is a big revenue gain


With 800 seat on plane , you can run special discounts to attract new customers

Below are the typical charges apart from the ticket fare that a person pays. In the example ticket I shown above the price of the ticket approx 1550$ has 800$ as ticket price and about 750 $ as various taxes and fee that carrier has to pay to operate the flight. The typical taxes and fee are listed below.

(A380 spends about 7 gallons of fuel per mile. Going rate for fuel now is around 3+$ per gallon. If these airline can procure fuel at say 2$ a gallon (Jet fuel is more expensive than the regular fuel) for a 10000 mile trip they will be burning 140K$ on the fuel alone)

In Airline industry there are only few winners (you can count them on fingers) --
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Taxes, fees & carrier charges (per person)
This is a list of all the taxes, fees and carrier charges payable per person.

Adults
International Surcharge USD 591.00
Customs User Fee USD 5.50
Transportation Tax USD 17.50
Transportation Tax USD 17.50
APHIS User Fee USD 5.00
Immigration User Fee USD 7.00
Passenger Civil Aviation Security Service Fee USD 2.50
Passenger Service Charge - Dom. USD 22.45
Passenger Service Charge - Intl USD 51.30
Airport Security Charge USD 16.57
Airport Fee USD 14.89
Passenger Facility Charge USD 4.50
Total USD 755.71

 

[SHAMK9]

PK is changing their livery again. It will be similar to "sohni dharti" livery of 1970-1980's.

 

[AZADPAKISTAN2009]

lol I think those taxes are US internal flight tax don't see those in international flights joke's on you
NEVER heard of international surcharge

 

[ACE OF THE AIR]

PIA has gone for an additional 4 B777's

 

[imiakhtar]

PIA has gone for an additional 4 B777

They've issued an impossible aircraft tender for 4x390 seat widebody aircraft (777), year of manufacture later than 2010, to be delivered within 5 months.

This is nonsense.

 

[ACE OF THE AIR]

They've issued an impossible aircraft tender for 4x390 seat widebody aircraft (777), year of manufacture later than 2010, to be delivered within 5 months.

This is nonsense.

There might be some brand new B777's at Boeing factory or some leasing company that might be ending some contracts. The 2010 indicates that the aircraft required should not be more then 4 years old.

Or they might be B747-8's

 

[imiakhtar]

might be some brand new B777's at Boeing factory or some leasing company

I've checked all the sources to hand.

There are no 777s available which match the tender requirements.

There are a few ex-Singapore 777-200ERs available but they have less than the req. seats and have RR engines.

Furthermore, if you read the tender, you will see it is weighted towards the 777 (points awarded for compatibility with PIA 777s) which further suggests the 747-8 has no chance.

 

[ACE OF THE AIR]

I've checked all the sources to hand.

There are no 777s available which match the tender requirements.

There are a few ex-Singapore 777-200ERs available but they have less than the req. seats and have RR engines.

Furthermore, if you read the tender, you will see it is weighted towards the 777 (points awarded for compatibility with PIA 777s) which further suggests the 747-8 has no chance.

Yes you are correct about the ex-Singapore 777-200ERs even I checked them out but PIA normally leases aircraft from ILFC. KLM is operating some B777's & B747-8's but they have some that they do not want for the time being so perhaps they might be the ones.

Yes you are correct about the ex-Singapore 777-200ERs even I checked them out but PIA normally leases aircraft from ILFC. KLM is operating some B777's & B747-8's but they have some that they do not want for the time being so perhaps they might be the ones.

PIA has a few B777-300ER leased KLM birds.

 

[imiakhtar]

PIA normally leases aircraft from ILFC

No they don't.

PIA has only ever leased one 777 from ILFC and that is airframe AP-BHX. There was a clause in the lease contract that would allow PIA to buy this airframe outright - I don't know if PIA has excercised that option yet.

KLM is operating some B777's & B747-8's but they have some that they do not want for the time being so perhaps they might be the ones.

You need to check your facts. KLM doesn't operate the 747-8 and nor do they show any sign of reducing B777 capacity especially during peak season (summer) which is the most profitable for all airlines.

PIA has a few B777-300ER leased KLM birds

1. KLM hasn't leased any of it's 777 out.

2. As above, PIA only operates (or operated) one leased 777 and that was AP-BHX from ILFC.

 

[jay89]

I have heard Pakistan does not have the facility to land these planes in any of the International Airports in Pakistan,is this true? May be they need a longer runaway.

 

[SHAMK9]

I have heard Pakistan does not have the facility to land these planes in any of the International Airports in Pakistan,is this true? May be they need a longer runaway.

Runway isn't the issue, heck, it can even land in Sialkot but other facilities aren't there like taxiways, hangars, boarding bridges etc

 

[imiakhtar]

I have to apologise for for stating an incorrect figure for the A380 takeoff runway length. It is actually lower than I thought at 9450ft (2880m) - MTOW of 560t with the lower power 70k engine rating:

ACJ380 | Airbus, a leading aircraft manufacturer

 

[Mercenary]

PIA cant afford this.

 

[t_for_talli]

When you take plane on lease the cost of purchase is reduced greatly however this plane pays for itself

Example Cost of the plane is $400,000,000 Million

Passenger Generated Revenue:
Capacity of plane is 800, and it makes 2 round trips per week

Lets take 1 Route Islamabad - New York @$1500 USD (Economy Class)
$2500 USD (Business Class)


Income Generated by First Class Business Class = 200 x $2500 = $500,000 USD
Income Generated By 1 Round Trip Economy Class = 600 x $1500 = $900,000 USD

Income Generated by 2 Round Trip = 2 x $1, 400,000 (1.4 Million) = 2,800,000 (2.8Million) USD
Income Generated in 1 Year by the plane/ Route (52 weeks) = $145 , 600, 000 Million

Baggage Generated Income:
Baggage Money , Pakistanis on average carry 5 Bags. If 3 bag are charged $20 each standard fee
Lets calculate extra fees generated

3 Extra Bags Fee $20 x 3 x 800 Passenger = $48,000 USD
2 Round Trips for plane = $96000 USD
52 Week schedule = $ 4992,000 (4.9 Million Dollars)

Net Income in 1 Year from Plane : $150 Million Dollars, in just three years the plane will almost pay for itself generating 396,000,000 Million USD dollars

+ Anything after that is pure profit


Note the Plane also has "Duty Free Shop Area" which can also generate Revenue. Encourage passengers to buy small gift in flight for passengers


Note these are Direct Flights (12 hours) , not like many others that stop over in unnecessary are making your trips last 24 hours long


Extra Revenue Generation, Using the surplus flying capacity to run 2 internal routes

Note the Capacity of the plane is 15,000 km
US - Islamabad route distance is 11 ,000 KM (Main Route)


>So its possible that the plane Could make a further drop / pick up inside Pakistan

Islamabad - Lahore (Extra Revenue Potential)
Lahore - Karachi (Extra Revenue Potential)
Karachi - Islamabad ( Islamabad to fly back to US)

Lets Assume , it loads 200 New passengers between Islamabad - Lahore

$500 USD x 200 = $100,000 USD (No return just one way)

Lets Assume , it loads 200 New passengers between Lahore - Karachi
$500 USD x 200 = $100,000 USD (No return just one way)

Karachi - Islamabad
$500 USD x 200 = $100,000 USD (Preparation for return trip from Islamabad- USA)
52 Weeks , 2 Times week x $300,000 USD =$31Million
3 Year = 93 Million USD

Big Picture:
3 Years US - Islamabad Route = $396 Million Dollars
3 Years Islamabad - Lahore - Karachi - Islamabad = $91 Million dollars

That is just return from 1 plane imagine 10 of these working for your PIA, After 3 years the 10 planes could generate 1.8 Billion USD revenue for PIA or Pakistan/ year. This would free up PIA from any debt past 4 years mark

Not only the plane has paid for itself but it is now generating revenue

10 , of these Magnificent planes could certainly return PIA to their rightful economy goals considering how much revenue they can generate for company on Long routes and combined with local trips in one Refuel


10 Year plane , with 10 A380 operational, 10 planes are purchased by Financing by PIA thru Bank, government helps with financing of 10 planes

Year 1 : Each of 10 planes is paying for itself (No Gain but customer happiness)
Year 2 : Each of 10 planes is paying for itself (No Gain but customer happiness)
Year 3 : Each of 10 planes is paying for itself (No Gain but customer happiness)
Year 4 : You generate 1.8 Billion Profit (Election Year good to show profit)
Year 5 : You generate 1.8 Billion Profit
Year 6 : You generate 1.8 Billion Profit
Year 7 : You generate 1.8 Billion Profit
Year 8 : You get 1.8 Billion Profit (2 Billion given to Pakistan Treasury)
Year 9 : You generate 1.8 Billion profit
Year 10: You generate 1.8 Billion profit
Year 11: You generate 1.8 Billion profit (PIA would get order 5 new planes)

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PIA generates 20 Billion US Dollars in 10 years by simply being more agressive

• At the end of 8th year PIA must return 2 Billion Dollars to Government of Pakistan for past assistance.

"The government could in turn use the 2.0 Billion from PIA and invest into Pakistan Railways , and purchasing 5,000 Locomotives from General Motors for 2 Million / engine and license production of engines TOT. This would solve the issue of Second institute of Pakistan , i.e Pakistan railways with out need for IMF bail out "

So with this plan by 2020 both PIA and Pakistan Railways would be Profitable
5,000 Locomotives would fix Pakistan Railways for 30 years
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This is the income only from A380 , 10 routes

Mr Genius you have calculated revenue and not income (fuel cost will account the most in ticket charge)
Who will pay for fuel, maintenance, airport fee and other taxes
Aviation industry in developing economies is not as profitable as it seems to be