288th Meeting of PIA Board of Directors, Aug: 25, 2005

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288th Meeting of PIA Board of Directors, Aug: 25, 2005

Post by PK777 »

Karachi, Aug: 25, 2005

Pakistan International Airlines presented its half yearly report along with the financial statement for the period ending June 30, 2005 to its Board of Directors in its 288th meeting held at PIA Head Office chaired by Mr. Tariq Kirmani.

The Corporation recorded a 13% growth in revenues amounting to Rs.3.5 billion over the same period last year. Both passenger and cargo business contributed to this increase.

Chairman and CEO, Mr. Tariq Kirmani apprised the Board of the unprecedented level of international oil prices which had hit the aviation industry hard. It affected PIA's average fuel price, which increased to Rs.92.56 per US gallon for the period under review as compared to RS.61.42 per US gallon in the corresponding period last year. The resultant increase in fuel bill was to the tune of Rs.3.7 billion over the same period last year.

The Board was also informed that the Revenue Passenger Kilometers (RPKs), increased to 6,823 million against 6,679 million during the same period in 2004. The seat factor improved to 69.48% as against 67.62% last year. Similarly on the Cargo side, Revenue Freight Tons Kilometers (RFTKs) increased by 6.6% to 189 million as compared to 177 million in the corresponding period last year. The Load factor was higher at 58.55% against 51.56% during 2004.

Mr. Tariq Kirmani, Chairman & CEO of the airline explained that the management was conscious of the adverse effect of the continuing high fuel prices and was taking remedial measures. The emphasis, he said was on cost cutting and revamping marketing strategy. The members were explained that as a part of reorganization of Marketing Department, four Strategic Business Units (SBUs) had been created namely Passenger Sales, Cargo, Business Tours & Charters and Other Income Streams.

Mr. Tariq Kirmani informed the Board of the new destinations and increase in frequency on various routes, PIA had introduced with its existing fleet during the period under review. These include introduction of flights to Kuala Lumpur, Singapore and Dubai Special flights and increase in frequency of flights to London and New York. The Chairman also informed the members of the inclusion of Nairobi and Urumqi on PIA's route map from 30th August and 2nd September 2005 respectively.

On the domestic network, he said PIA had launched Air Safari flights and will be soon operating express service between Lahore and Islamabad. There would be a flight operating every three hours beginning at eight in the morning till eight in the evening, from both cities.

The members expressed their satisfaction over the performance of the airline and advised the management to take effective cost cutting measures to absorb the additional fuel cost. Those who attended the meeting include Syed Mohammad Fazal Agha, Mr. Kamal Afsar, Maj. Gen. (Retd) Muhammad Ashraf Chaudhry, Mr. M.H.K. Khaishgi, Mr. Javed Saifullah Khan, Mr. S. Ali Raza, Dr. Sughra Junego and Mr. Asad Ali Khan.


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