KARACHI: Pakistan’s national flagship airline will try to pull out of a recent tailspin with a major restructuring plan and the acquisition of new planes, the chairman of the state-run carrier told AFP.
The Pakistan International Airlines (PIA) has racked up record losses over the past two years, reportedly prompting President Pervez Musharraf to summon the management and demand action to save the company.
PIA had a further shock earlier this month when it pulled part of its 747 fleet from service after European authorities complained about their condition. “We have drawn up a business plan for the restructuring of the organisation and renewal of the existing fleet,†PIA chairman and chief executive Tariq Kirmani told AFP in an interview.
The airline, which has 40 planes and 22,000 employees, suffered a 4.4 billion rupees (74 million dollars) loss in 2005, compared with a profit of 2.3 billion rupees in 2004.
For the first nine months of 2006 its losses were more than double to hit 9.2 billion rupees. The major loser is the government, which owns 88 per cent of PIA’s shares.
The PIA chief put most of the blame for the carrier’s woes on high fuel prices that have affected airlines around the world. However, Kirmani predicted PIA would turn the corner soon. “Things take time. We hope in the next six months results will start coming and in 2007 PIA will be a neat and clean organisation and we would turn it into a profitable company,†he said.
The fleet caused PIA problems in early November when the European Aviation Safety Agency criticised the poor condition of some of its jumbo jets, after which the airline removed them from service on European routes. The chairman downplayed the incident, saying the “EU has not banned or blacklisted any of the aircraft.â€ÂÂ
The European Union has started its ramp inspection for past six months which examines appearance of the aircraft, cabin and cockpit crews, seats and the general appearance of the flight,†the chairman said. He said that after one of these inspections PIA voluntarily refurbished its 747s and two had already returned to the air.
Source: The News
Efforts on to make PIA profitable
-
- Site Admin
- Posts: 54236
- Joined: Thu Aug 05, 2004 6:52 pm
- Location: Pakistan
-
- Registered Member
- Posts: 3165
- Joined: Sun Aug 08, 2004 11:17 am
-
- Registered Member
- Posts: 155
- Joined: Wed Jan 04, 2006 11:16 pm
- Location: london uk
-
- Registered Member
- Posts: 153
- Joined: Tue Aug 30, 2005 11:51 am
Major carriers like EK, SQ, BA, CX, JL, NH, MH et al all manage to make profit inspite of high fuel costs- and they have far bigger networks and fleets than PIA-The PIA chief put most of the blame for the carrier’s woes on high fuel prices that have affected airlines around the world.
PIA is flooded with poor management and overpaid people- a mass cull of these employees is required- boosting productivity and lowering costs.
Is it any wonder PK is on the potential list of airlines that could be banned by the EU?

-
- Registered Member
- Posts: 390
- Joined: Wed Jan 25, 2006 9:49 pm
- Location: Petropavlovsk
You know its just the management which say its not their faults but the fuel. Its quite classic.BOEING777 wrote:Major carriers like EK, SQ, BA, CX, JL, NH, MH et al all manage to make profit inspite of high fuel costs- and they have far bigger networks and fleets than PIA-The PIA chief put most of the blame for the carrier’s woes on high fuel prices that have affected airlines around the world.
PIA is flooded with poor management and overpaid people- a mass cull of these employees is required- boosting productivity and lowering costs.
Is it any wonder PK is on the potential list of airlines that could be banned by the EU?
About overpaid people, I think there are a few which are overpaid (the management!), and all others which are the real peoples who run the airline which are underpaid (pilots, stewards, air hostesses,...)!
They have to cut jobs, and they have to lower the salaries of overpaid people but in the same time, they have to increase the salary of their other employees (they have to keep talents from leaving to other gulf companies).
But all this have to be done only if they have a clear plan for the future of the company.
-
- Registered Member
- Posts: 153
- Joined: Tue Aug 30, 2005 11:51 am
In reality, thats a pathetic excuse. PIA hasnt even got 50 planes- airlines like American have over 500- and even after the USA downturn after 9-11, its managed to ride out the crises with a 10 times bigger fleet and an even bigger fuel and wage bill- not to mention a route network that spans the Earth, whereas PK doesnt even serve 30 countries with decent frequencies.flyingsystem wrote: You know its just the management which say its not their faults but the fuel. Its quite classic.
Whether people like it or not, the way PIA is run is shockingly poor and pathetic- and the only reason it hasnt gone bust is because the Govt props it up.
-
- Deactivated
- Posts: 467
- Joined: Fri Oct 27, 2006 8:37 am
- Location: al-ain