khanboy007
FULL MEMBER
- Joined
- May 22, 2012
- Messages
- 1,180
- Reaction score
- 1
- Country
- Location
ISLAMABAD: The crisis-ridden Pakistan International Airlines (PIA) plans to induct 28 aircraft as part of its revival strategy to bring itself to a breakeven level with increased revenue and cost cutting measures by the end of the current year.
The planes will be 20 new generation A-320/B-737, and four Boeing 777 and ATR 72-500 aircraft each.“The only option is to turn around the national flag carrier through different steps,” Special Assistant to the Prime Minister on Aviation Shujaat Azim told The News.
He said the planes would be immediately taken on dry lease (on rent without fuel, pilots or general flight expenses, having operational control of the flights). “Prime Minister Nawaz Sharif wants that the planes not older than 2010 should be taken.”
According to a presentation titled “revival of PIA”, given to top authorities, a copy of which is available with The News, the current fleet of 777 aircraft would be refurbished to the highest level, which would be used only on long haul flights to Britain, the US, Canada and Saudi Arabia.
The PIA would be restructured with creation of Strategic Business Units (SBUs), starting with SPEEDEX and followed by kitchen and MRO (Maintenance, Repair and Overhaul). Non-core activities would be separated from core to ensure profitability and efficiency.
It is projected that the total fleet including the new inductions will generate annual revenue of Rs72 billion at 85% seat factor and 12.5 hours fleet utilization/day. The additional revenue will offset losses, it is hoped.
It has been expected that positive impact of modern fleet will raise the passenger confidence, and enhance revenue, schedule reliability and route rationalization and reduce fuel cost by 38% and maintenance cost. The overall operating expenses will come down by 30%.
At present, the PIA has a fleet of 34 aircrafts out of which only 25 are serviceable. They operate on 23 domestic and 30 foreign destinations. The airline has the market share of 60.2% (domestic) and 26.8% (international). It overall share comes to 34.4%.
The presentation said that the average age of the existing fleet is nearly 17 years. The PIA has 19,418 employees (inclusive of 3,188 personnel through service providers). Employee-to-aircraft ratio is 776, which is almost four times higher than the worldwide ratio. The airline owns assets (aircrafts, properties etc.) worth 128,211,290 billion as against liabilities (loans, Civil Aviation Authority, Original Equipment Manufacturers or OEMs etc.) of 262,549,613 billion. This presents a highly dismal financial condition.
The presentation said that business class seats will be upgraded to full flat beds; in-flight entertainment will be improved and cabin ambiance will be changed with placing of carpets, seat covers, curtains, side trims, panels, and gallery equipment.
Of the existing PIA fleet, two of four Boeing 747 aircrafts (26-year old) are serviceable. Similarly, six out of twelve Airbus A310 (20-year old) are operational. Two of three Boeing 737 planes (26-year old) are serviceable. All the six ATR 42 (7-year old) planes are in service.
Likewise, all the nine Boeing 777 aircrafts are operational. With the exception of one Boeing 777, which is on lease, all the planes are owned by the PIA. Technical reasons have been cited for the nine planes being out of operation. Except Boeing 777 and ATR aircrafts, the average age of the fleet is 18 years.
As part of the revival strategy, the PIA has stopped all perks and privileges of present and previous members of its board and chairman. The procurement of aircraft parts will only be from the OEMs. All off-line stations are being closed to save cost. The performance of all the General Sales Agents (GSAs) is being reviewed. Free seat up-gradation or excess baggage has been stopped, the presentation said.
Plan to induct 28 new aircraft to revamp PIA - thenews.com.pk
-----------------------------------------
finally
The planes will be 20 new generation A-320/B-737, and four Boeing 777 and ATR 72-500 aircraft each.“The only option is to turn around the national flag carrier through different steps,” Special Assistant to the Prime Minister on Aviation Shujaat Azim told The News.
He said the planes would be immediately taken on dry lease (on rent without fuel, pilots or general flight expenses, having operational control of the flights). “Prime Minister Nawaz Sharif wants that the planes not older than 2010 should be taken.”
According to a presentation titled “revival of PIA”, given to top authorities, a copy of which is available with The News, the current fleet of 777 aircraft would be refurbished to the highest level, which would be used only on long haul flights to Britain, the US, Canada and Saudi Arabia.
The PIA would be restructured with creation of Strategic Business Units (SBUs), starting with SPEEDEX and followed by kitchen and MRO (Maintenance, Repair and Overhaul). Non-core activities would be separated from core to ensure profitability and efficiency.
It is projected that the total fleet including the new inductions will generate annual revenue of Rs72 billion at 85% seat factor and 12.5 hours fleet utilization/day. The additional revenue will offset losses, it is hoped.
It has been expected that positive impact of modern fleet will raise the passenger confidence, and enhance revenue, schedule reliability and route rationalization and reduce fuel cost by 38% and maintenance cost. The overall operating expenses will come down by 30%.
At present, the PIA has a fleet of 34 aircrafts out of which only 25 are serviceable. They operate on 23 domestic and 30 foreign destinations. The airline has the market share of 60.2% (domestic) and 26.8% (international). It overall share comes to 34.4%.
The presentation said that the average age of the existing fleet is nearly 17 years. The PIA has 19,418 employees (inclusive of 3,188 personnel through service providers). Employee-to-aircraft ratio is 776, which is almost four times higher than the worldwide ratio. The airline owns assets (aircrafts, properties etc.) worth 128,211,290 billion as against liabilities (loans, Civil Aviation Authority, Original Equipment Manufacturers or OEMs etc.) of 262,549,613 billion. This presents a highly dismal financial condition.
The presentation said that business class seats will be upgraded to full flat beds; in-flight entertainment will be improved and cabin ambiance will be changed with placing of carpets, seat covers, curtains, side trims, panels, and gallery equipment.
Of the existing PIA fleet, two of four Boeing 747 aircrafts (26-year old) are serviceable. Similarly, six out of twelve Airbus A310 (20-year old) are operational. Two of three Boeing 737 planes (26-year old) are serviceable. All the six ATR 42 (7-year old) planes are in service.
Likewise, all the nine Boeing 777 aircrafts are operational. With the exception of one Boeing 777, which is on lease, all the planes are owned by the PIA. Technical reasons have been cited for the nine planes being out of operation. Except Boeing 777 and ATR aircrafts, the average age of the fleet is 18 years.
As part of the revival strategy, the PIA has stopped all perks and privileges of present and previous members of its board and chairman. The procurement of aircraft parts will only be from the OEMs. All off-line stations are being closed to save cost. The performance of all the General Sales Agents (GSAs) is being reviewed. Free seat up-gradation or excess baggage has been stopped, the presentation said.
Plan to induct 28 new aircraft to revamp PIA - thenews.com.pk
-----------------------------------------
finally
