PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

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Abbas Ali
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Re: Foreign Consultant Team to Visit Pakistan to Review PIA Business Model

Post by Abbas Ali »

^ Yes, maybe.

Advertisement to hire an international consultancy firm for the development of PIA five-year corporate business plan was given in October 11, 2019, newspaper.

International Air Transport Association (IATA) was the lowest evaluated bidder in PIA evaluation report made available on airline's website in June 2020.

Maybe COVID-19 pandemic delayed consultancy firm's visit to Pakistan.

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Details here: viewtopic.php?f=1&t=28182

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Re: Foreign Consultant Team to Visit Pakistan to Review PIA Business Model

Post by faisal-777 »

Consultants are hired for things one does not understand or has expertise of. Everyone knows PIA issues - willingness to solve them head on is just not there.
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Re: Foreign Consultant Team to Visit Pakistan to Review PIA Business Model

Post by Amaad Lone »

The demise of PIA started in 2004 and in 16 year PIA has bled around 500 billion rupees.

A lot this is exchange rate losses as the rupee went from 60 to a dollar to 160.

Lot of this is mark up money, as PIA borrowed like there is no tomorrow and as debt piled up so did the interest payments.

Some of it is depreciation of assets which one does over 12 years, but actually uses the asset for 20 years.

The big question will be how to get rid of the 2 billion dollar debt PIA owes to banks.

I know how, but I am not going to say as I am not being hired as a consultant.

In the end, the government will take over PIA liabilities, and the hotels and other assets and PIA management will be handed over to a foreign airline, probably Turkish.

Best plan ever made was under the previous Nawaz Sharif government when the toxic assets and 10,000 employees were going to be with PIA and PIA 2 was going to be a new airline.
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Re: Foreign Consultant Team to Visit Pakistan to Review PIA Business Model

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A team of foreign experts is preparing PIA Business Plan to make the airline successful in the world, said CEO PIA Air Marshal (Retired) Arshad Malik.

https://e.dunya.com.pk/detail.php?date= ... 3_19314063

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Re: PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

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1.2 million dollars contract awarded International Air Transport Association (IATA) to prepare five-year business plan for PIA.

IATA team to submit its report in twenty weeks.

IATA as the lowest evaluated bidder was awarded the contract in year 2020. However, the team's visit to Pakistan last year was delayed due to COVID-19.

https://www.thenews.com.pk/print/799889 ... 1614425317

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Re: PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

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Five-member consultancy team due to arrive in Pakistan on April 25. The team will provide consultancy services for preparing five-year business plan for PIA.

Team members include nationals of Canada, Portugal, South Africa, Spain and Switzerland. They will arrive in Pakistan on flights from Istanbul and Dubai.

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Re: PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

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Ijaz Kakakhel

Islamabad

The process of making Business Plan for Pakistan International Airline (PIA) was in progress through an international firm, and hopefully it would be ready for approval by September 2021.

The business plan for the national flag carrier first required to get approval from the PIA’s Board and later from the Cabinet, said Chairman PIA Air Marshal Arshad Malik while briefing the National Assembly Standing Committee on Aviation Division.

PIA already has made its Business Plan but it was told to make it from IATA specialist firm.

The Chairman PIA further said that details of all data of previous five to ten years were provided to the firm and the plan was in final stage.

https://pakobserver.net/pias-business-p ... 21-arshad/
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Re: PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

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Completion of five-year PIA Business plan prepared by International Air Transport Association (IATA) expected in September, informed CEO PIA Air Marshal Arshad Malik.

The Business Plan prepared by IATA will be presented to the Government of Pakistan in October.

Decisions like induction of modern wide-body aircraft in PIA fleet will be made according to airline's Business Plan prepared by IATA.

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Re: PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

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PIA Business Plan prepared by International Air Transport Association (IATA) expected in November, says airline's CEO Air Marshal Arshad Malik.

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Re: PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

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Delay after delay , they haven't finalised a business plan in two years ....
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Re: PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

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PIA Business Plan prepared by International Air Transport Association (IATA) to be presented to Finance and Aviation ministers on February 1, says airline's CEO Air Marshal Arshad Malik.

Later, the Business Plan will go to federal cabinet for approval.

PIA will invite bids for wide-body and narrow-body aircraft induction after airline's business plan approval.

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Re: PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

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Today, Five Year (2022-2026) PIA Business Plan prepared by IATA Consulting (https://www.iata.org/en/services/consulting/) presented to Finance Minister Shaukat Tareen and Aviation Minister Ghulam Sarwar Khan.

The Business Plan proposes:

* Increase in number of aircraft in PIA fleet from 29 to 49 aircraft including:

27 x narrow-body aircraft
16 x wide-body aircraft
6 x turboprop aircraft

* Number of PIA passengers will increase from 5,200,000 per year to 9,000,000 per year.

* PIA will increase frequency of flights on profit making routes including UK, UAE and KSA.

* PIA will start flights to new routes including Baku, Hong Kong, Istanbul, Kuwait, Tehran, Urumqi and Singapore.

* PIA will also work on improving cargo and charter flights business.

* Business Plan seeks completion of PIA financial restructuring.

* Implementation of 2019 National Aviation Policy for monitoring and safeguarding Pakistani airlines' interests.

* PIA to be managed on commercial basis without external pressure and interference.

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Re: PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

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IATA Consultancy Presents PIA Business Plan 2022-26

Karachi, Feb 01, 2022 :
World’s premium aviation consultancy agency, IATA Consultancy, presented a comprehensive business plan for the national flag carrier covering the period 2022 to 2026 to the Minister of Finance and Minister of Aviation, here on Tuesday.

The business plan preparation was commissioned by Ministry of Finance last year consequent to the report by the ex-SAPM on Public Enterprises Reforms Dr. Ishrat Hussain to the Prime Minister and the federal cabinet. Dr. Ishrat’s report; which was also termed as a complete restructuring plan for PIA with the objective to not only turn around PIA towards profitability, but also converting it into an agile business unit, focused on its core operations.

As the plan involved financial restructuring to the tune of hundreds of billions of rupees, the officials at the helms of finance ministry and the planning commission demanded a Busines Plan prepared by an international consultant for PIA before committing to the huge amounts.

The International Air Transport Agency (IATA)’s consultancy services were hired for that purpose, which after one year of spade work has developed a 5-year Corporate business transformation plan with the current year 2022 as the base year and going all the way to 2026.

The key postulates of the business plan encompass, financial restructuring, independent decision making, re-organization of company structure, restrictions to Core Business, Financial discipline, HR rationalization cost controls, review destinations, a fleet planning exercise and network expansion thereby increasing PIA’s network spread and passenger uplift.

PIA’s fleet is expected to grow from current 29 to 49 by 2026, comprising of 16 wide body, 27 narrow body and 6 turbo propeller aircraft.

The fleet will be used to expand on current productive routes of UK, KSA, UAE and Gulf sectors as well as will be operated on identified markets of Baku, Hong Kong, Istanbul, Kuwait, Tehran, Urumqi and Singapore. Resultantly PIA’s passengers would grow from 5.2 million pax per annum to 9.0 million pax per annum and revenues to grow to US$ 1.7 Billion per annum by 2026. PIA with these initiatives will achieve break even by 2025. The assets of PIA will also increase from current US$1.196 Billion to US$2.183 Billion. PIA which is currently operating 359 round trip flights per week, will be operating 581 round trip flights at the end of the program.

The outlook also takes into account the global aviation scenarios and challenges, most specifically the COVID-19 pandemic related travel restrictions and reduced demand, and the macro environmental / economical challenges faced by the country.

However, the plan has been made conditional to certain factors, most important of which is the commitment by the Government of Pakistan to undertake the Financial Restructuring of PIA for the legacy debt on its balance sheets and which are beyond the serviceable capacity of the airline. This will also ease the burden on its cash flows, enabling it to undertake product improvements initiatives, critical for its long-term sustenance.

The plan also urges the government to ensure compliance to the National Aviation Policy in its true spirit, providing a level playing field to the Pakistani carriers, which often find themselves at a disadvantage in their own country. Additionally, IATA Consultancy is of the view that PIA maybe run under private management rules, also pertaining to the procurement practices.

It also suggests that external influence on company matters may be curtailed and the consistent public scrutiny may be scaled back as it not only hinders with the critical corporate responsibilities of the managers, but also creates a negative PR for the company resulting in its corporate repute and revenue streams.

Source: PIA Press Release
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Re: PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

Post by Usman123 »

Only just this is what they developed in 2 years and after paying them 1.2 million dollars ?

49 aircrafts is an older number also used by the past management in 2016

Adding this much number of aircrafts will only increase debts and load on tax payers money where is the planning 💰
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Re: PIA to Hire Consultancy Firm for Preparing Five-Year Corporate Business Plan

Post by Amaad Lone »

What about PIA debt to commercial banks, no mention of how those loans will be PAID OFF.

This plan made when oil was at 45 dollars, now its 90 dollars.

Revenue of 1.7 billion dollars is 300 billion rupees at 2022 exchange rate.

That means the current debt servicing of 36 billion will still be 12% of revenue and there is no way PIA can make money with its current debt situation.

By 2026 the 777 fleet will be 20-22 years old, are those planes included in the 49 planes???

Would love read the IATA 20 crore rupee plan.
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