Kirmani on CNBC

nutsforplanes · Post by **nutsforplanes** » Tue Jan 09, 2007 3:16 pm

Saw part of Tariq Kirmani's live interview on CNBC-Pakistan.

Besides the regular PR BS, some salient features:

-Current fleet average 21 years. To be brought down to 11 years shortly. Fleet average to be kept at 10 years.
-PIA looking into 787's
-747-400's to replace 747-300's ??
-All the future A/C inducted in the fleet will be leased.

samee380 · Post by **samee380** » Tue Jan 09, 2007 3:35 pm

they should look into 787's as AI have them.

747-400 would be good to replace the 747-300

however i dont agree with the leasing

The point is PIA will have to pull they finger out in the next few years!!!

Adnan Anwar · Post by **Adnan Anwar** » Wed Jan 10, 2007 11:38 am

samee380 wrote:they should look into 787's as AI have them.

747-400 would be good to replace the 747-300

however i dont agree with the leasing

The point is PIA will have to pull they finger out in the next few years!!!

leasing or buying plane, PIA still has to incur debt, but with leasing PIA can avoid depreciation and get a new aircraft after using an aircraft for a 10 year lease.

Who cares if AI has it or not, PIA is not competing with AI but it need to commercially viable solutions

mohammad abdulaziz · Post by **mohammad abdulaziz** » Wed Jan 10, 2007 12:11 pm

How much does it cost in term of leasing charges (roughly) as compared to Revenue. Like currently PIA fuel cost is 49% of the Revenue. Can PIA really make profit if it is incurring 49% on fuel whereas leasing rentals will be added to it. Will this not make it even more costly? Since there are many airline experts in this forum, can somebody indicate brief comparative analysis to show that Leasing of aircraft is more profitable for PIA?

samee380 · Post by **samee380** » Wed Jan 10, 2007 1:22 pm

Adnan Anwar wrote:
samee380 wrote:they should look into 787's as AI have them.

747-400 would be good to replace the 747-300

however i dont agree with the leasing

The point is PIA will have to pull they finger out in the next few years!!!
leasing or buying PIA has to incur debt, but with leasing PIA can avoid depreciation and get a new aircraft after using an aircraft for a 10 year lease.

Who cares if AI has it or not, PIA is not competing with AI but it need to commercially viable solutions

yeh i understand but what i meant is that the 787's will be good for PIA they are what i have heard a very good aircraft

Moin · Post by **Moin** » Wed Jan 10, 2007 2:41 pm

Yes, emulating AI should not be one of our priorities. The 787 is becoming one of Boeing's best selling a/c.

What I don't understand is that TK is pretty much anti-747 and now he's discussing 744's? If it had been 748's that would be understandable, but where did 744's suddenyl come into the picture? If they do end up getting them, it'll probably be a CX like arrangement. A lease with the option to purchase nearing the end of the lease term.

In all fairness, before we go and condemn TK for life as the worst thing to ever happen to PIA, lets see hat he can come up with. Its not even been 5 years for him and running an airline like 'this' is not an easy job, an airline strapped in debts with no choice but to keep having the Govt bail it out of bankruptcy every 6 months, a Govt that isn't really that interested in its well being yet which refuses to consider surrendering ever part of it to the private sector.

Its not entirely TK's fault, the Govt, being the official 'owner' of the airline that doesn't care and without the appropriate funds, theres not really much you can do. You can really go and pin every fault of the airline down on TK because theres no one else to blame.

samee380 · Post by **samee380** » Wed Jan 10, 2007 3:50 pm

Moin wrote:Yes, emulating AI should not be one of our priorities. The 787 is becoming one of Boeing's best selling a/c.

What I don't understand is that TK is pretty much anti-747 and now he's discussing 744's? If it had been 748's that would be understandable, but where did 744's suddenyl come into the picture? If they do end up getting them, it'll probably be a CX like arrangement. A lease with the option to purchase nearing the end of the lease term.

In all fairness, before we go and condemn TK for life as the worst thing to ever happen to PIA, lets see hat he can come up with. Its not even been 5 years for him and running an airline like 'this' is not an easy job, an airline strapped in debts with no choice but to keep having the Govt bail it out of bankruptcy every 6 months, a Govt that isn't really that interested in its well being yet which refuses to consider surrendering ever part of it to the private sector.

Its not entirely TK's fault, the Govt, being the official 'owner' of the airline that doesn't care and without the appropriate funds, theres not really much you can do. You can really go and pin every fault of the airline down on TK because theres no one else to blame.

they could get some 747-400's from BA ???

SalamPaks · Post by **SalamPaks** » Wed Jan 10, 2007 4:13 pm

You cannot hang your hat on the words of a corporate officer during a television interview, especially for a company that is constantly being interfered with by the powers that be.

CoyBoy · Post by **CoyBoy** » Wed Jan 10, 2007 4:49 pm

Some of the aircraft may come form Malaysia Airlines according to a post at pakistaniaviation.com.

behramjee · Post by **behramjee** » Thu Jan 11, 2007 1:48 am

actually i agree with the idea of TK wanting PIA to lease in acft rather than purchase new ones for the time being. My reasons are :

1. Leased aircraft can be delivered within a few months rather than years for a newer model.

2. a leased aircraft will incur short term less capital expenditure than a newer aircraft.

3. time has come to get rid of the entire B 747-200M/300 fleet, and with many airlines retiring their B 744s in favour of B 773ERs, through careful homework/research and bargaining, PIA can grab hold of 7-8 such aircraft at the right price.

MAS and ANA will be selling/leasing out their B 744s shortly as would JAL.

PakN'US · Post by **PakN'US** » Thu Jan 11, 2007 3:55 am

behramjee wrote:actually i agree with the idea of TK wanting PIA to lease in acft rather than purchase new ones for the time being. My reasons are :

1. Leased aircraft can be delivered within a few months rather than years for a newer model.

2. a leased aircraft will incur short term less capital expenditure than a newer aircraft.

3. time has come to get rid of the entire B 747-200M/300 fleet, and with many airlines retiring their B 744s in favour of B 773ERs, through careful homework/research and bargaining, PIA can grab hold of 7-8 such aircraft at the right price.

MAS and ANA will be selling/leasing out their B 744s shortly as would JAL.

If I am not mistaken, United Airlines has 777's that can be either bought or leased.

Moin · Post by **Moin** » Thu Jan 11, 2007 5:18 am

PIA had the option to purchased used 777's from UA but got new ones instead, a much better move in my opinion.

As regards the 744, airlines like SIA, MAS, ANA etc could be considered. I don't think BA will be retiring their 744's any time soon until and unless they decide upon their replacement.

behramjee · Post by **behramjee** » Thu Jan 11, 2007 4:40 pm

Moin wrote:PIA had the option to purchased used 777's from UA but got new ones instead, a much better move in my opinion.

yes it was a better option.

I don't think BA will be retiring their 744's any time soon until and unless they decide upon their replacement.

true, BA has no intention what so ever on retiring their B 744s any time soon...earliest would be in 2009-10 if they order the B 748s to replace the B 744s.

If I am not mistaken, United Airlines has 777's that can be either bought or leased.

In 2002, UAL had many B 772s and B 744s up for sale and leasing but now with the US carriers realizing the high yield potential of flying more long haul international flights, I dont think so they have any spare B 777s and B 744s on offer. Also remember, they need these widebodies next year to launch their new nonstop USA-China flights pending US DOT approval.

Some of the aircraft may come form Malaysia Airlines according to a post at pakistaniaviation.com.

one aircraft only came which was a B 772ER.

PIA looking into 787's

this is what i feel really irritated by. PIA shouldnt be "looking into B 787s" because it is virtually a no brainer choice of an aircraft meant to replace their ageing A 310 fleet which is over 15 years old by now. The A 332 and A 350-800 is too big to be considered a suitable A 310 replacement. They should have in 2006 paid a small deposit to Boeing and reserved B 787-800 slots for 2010 delivery. Since they didnt, they wont get them till 2012 earliest due to the immense backlog.

I would like to see PIA dry lease in 3-4 A 300-600Rs to be used on high yielding high density gulf routes from Northern Pakistan for which they used their AB4s in the past.

CoyBoy · Post by **CoyBoy** » Thu Jan 11, 2007 4:51 pm

PIA are considering getting 744 from Malaysian, I think you did not visit the said website to further delve into the topic.

samee380 · Post by **samee380** » Thu Jan 11, 2007 4:52 pm

CoyBoy wrote:PIA are considering getting 744 from Malaysian, I think you did not visit the said website to further delve into the topic.

yeh i have read it its a good idea