Based on the Accounting Book PIA's planes are running 100% Free
That is 100% of revenue from Tickets = Fuel/ Expenses and People salaries put the totals into Negative zone
Lets Take the Year 2016: (As example)
- 45,381 Millions in PKR yearly loss with about 14,000 Employee force
Proper way to write the Loss : 45,381,000,000 Rupees
Lets convert these Losses into Million of Dollars @125 : 1 Rupee/Dollar ratio
- 363,048,000 Million Dollars in Losses (363 Million Dollar)
Lets just calculate their 1 Day operation and see if their Accounting Book match a very common sense approach to dis-credit their Accounting books.
Salaries: 14,000 Workers
- 50% Make 50,000 Rupee per month ~ 7,000 x 50,000 x 12 div 125 rupee = 33,600,000 (33 Million Dollars salaries paid in year)
- 50% Make 1 Lakh Rupee per month ~ 7,000 x 1,50,000 x 12 div 125 rupee = 100,800,000 (100 Million Dollars salaries paid in year)
Hourly Rate of 50% who make 50,000 rupee per month ~ 39 Rupee per hour =
0.31 Cents per hour (talking in dollar figures now)
Hourly Rate of 50% who make 1,00,000 rupee per month ~ 78 Rupee per hour =
0.62 Cents per hour (talking in dollar figures now)
Summary:
- 363 Million in Losses (50% is from your salary figure and 50% from operation)
- 133 Million Losses by Salary
Now lets look at the Operation of PIA:
When a plane Flies what kind of cost they pay ?
- Fuel
- Airport Landing Tax (Very small fee for plane to land and take off )
- Money you make = #Seats full in plane normally 100-140 seats
Lets Look at a Example Qouted on internet on Fuel cost
A Boeing 767 burns about 9,000 gallons of jet fuel on a cross-country flight. That means American Airlines pays about
$34,000 in fuel costs alone for that flight, up
$15,000 in just the past year.
JFK to LAX = 5 hour flight about same distance as Jeddah to Islamabad
So we can claim , ok 5 hour flight it cost $34,000 Dollar in fuel to PIA as well (Jeddah /Islamabad Route)
Here is what PIA charges for that flight $540-$659 Dollar
Now PIA due to their strategy have planes which take not 100-140 seats like in North America they have
180 to 400 Seat planes
DAY BY DAY OPERATION
Assumption for this Simulated cost Analysis
Lets Assume : 33 PIA planes had a average seating size of 200 Seats , all running on 1 god damn route Islamabad to Jeddah for Umrah
Income Earned by 33 planes 1 Trip
33 Planes x 200 Seats x $550 Charged per Ticket x 1 Way Journey =
3,630,000 dollar
Cost Incurred:
$34,000 x 33 =
1,122,000 Dollars
Employee Cost: (1 DAY SALARY PAID WHEN 33 PLANES FLEW 1 FLIGHT)
50% i.e 7,000 Employees make 50,000 rupee
7,000 x 0.32 Cents per hour x 8 hours =
17,920 Dollars (Lower Tier workers)
50 % i.e 7,000 Employees make 1,00,000 rupee
7,000 x 0.62 x 8 = 34,720 Dollars (Upper Tier workers)
Total : Employee footprint $52,640
1 Day Operation 33 planes on 1 route :
Revenue :
$3,630,000 Dollars (Full Plane not including Freight money)
Fuel Cost :
-$1,222,000 Dollars
Employee Foot Print : -
$52,640 Dollars 
They don't make millions
Fee to Park at Airport : 33 planes x 300 Dollar = -10,000 Dollars
FOOD COST : $0 Passengers asked to buy own food at Airport
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Profit in 1 Day : $2,345,360 Dollar
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Theoretically , in 365 Days using same mentality and calculation the Profit Figure should be 859 Million Dollars
I simulated a run of 33 planes just 1 flight each and all PIA work force was paid for 1 day salary and I also paid fuel cost still made close to 2 Million in Profit in single day
PIA EXECUTIVES MUST BE MORONS TO LOSE MONEY ON SUCH A GOLDEN COW
2 Pay brackets
Grade A : 1 Lakh Salary
Grade B : 50,000 Rupee Salary
These are very average expected Monthly Salary in Pakistan
Assumption: 100% Full Flights which is what I see in PIA every time I travel on it
The planes would have to be run at 20% capacity or 10% capacity to record losses that PIA claims or there are massive salary / perks corruption taking place
So what did I proved in this Giant Calculation?
#1 If PIA operates on Day to Day profit basis , and deducts loses daily they will have close
to 2 Million Dollar profit Daily the corruption becomes visible as you break down the day
to day operation to 1 day unit.
#2 All Employees would still be paid as I showed in example
#3 The planes would have to be flying with only 10 Passengers for PIA to make such claims
of Losses or Salaries of workers are way way way higher then 50,000 or 1 Lakh per
month figures
#4 The Profit should be higher as we operate planes above 300-400 seat capacity I only demonstrated the calculation with 200 Seat concept
It is unimaginable how this company is making Losses
- ALL PIA REPORTS SHOULD BE DONE DAILY BASIS .... DAY BY DAY CHECKS AND REVIEWS
- Any Day when losses are high the Management should do a full investigation for that Day loss
DAILY ANTI-CORRUPTION REVIEW
- Planes Flew in Day
- Tickets Sold and People who flew in Day
- Fuel Cost for Day
- Airport Cost for Day
- Daily Salary Check Issued to worker'
The company should be run with Goal to make 2.5 Million Dollars daily
day to day basis after all cost are paid
If anyone is collecting more then 50,000 Rupee per month or 1 Lakh rupee per month in Salary + Perks these people should be identified
