PIA sets Rs74b target

[mohammad abdulaziz]

KARACHI: Pakistan International Airlines (PIA) has set a target of Rs 74 billion to be achieved by the station heads of the airline in 2007 while the target for seat factor is 76%

This was stated by PIA Chairman and CEO Tariq Kirmani while addressing at the inaugural session of the two-day 4th Global Marketing Conference of PIA. The conference was attended by the deputy-managing director, senior-vice presidents and general managers of PIA, in addition to over a hundred station heads from its worldwide network.

Tariq Kirmani in his inaugural address talked about the prevailing period of uncertainty in which the impact of fuel prices in the last two years had marred the progress of PIA and was a very difficult period for world aviation as a whole.

He quoted the IATA figures in which the world aviation industry has suffered a substantive loss of $41 billion in five years and PIA was no exception.

He said that by April 2007, one third of the fuel guzzling old PIA fleet would become new with the acquisition of fifteen newer planes, thus changing the fleet age from the current 21 years to 11 years.

He mentioned here that the PIA board had approved 10 years to be the consistent fleet age, indicating there will be a continuous airplane replacement activity in PIA, such a induction of 777 in 2003 and ATR in 2005.

The acquisition of new aero planes will have two important effects on the airline including financial managers will be consistently active, leasing or buying new airplanes to maintain the average age, and the engineering will also be consistently involved determining the equipment requirements.

He emphasised the need for decision-making ability. “PIA has talented people and they need to be helped to achieve their full potential and in realization of this objective communication is of essence”. staff report

Source: www.dailytimes.com.pk

[Abbas Ali]

Global marketing moot of PIA begins

ISLAMABAD: The two-day 4th Global Marketing Conference of PIA, began with over a hundred Station Heads from its worldwide network in attendance.

According to the statement of PIA, the conference was inaugurated by the Chairman and CEO PIA, Tariq Kirmani, and attended by The Deputy Managing Director, all the Senior Vice Presidents and General Managers of PIA. Tariq Kirmani in his remarks marking the opening of the conference, talked about the prevailing period of uncertainty in which the impact of fuel prices in the last two years had marred the progress of PIA and was a very difficult period for world aviation as a whole.

He quoted IATA figures in which the world aviation industry has suffered a substantive loss of US $ 41 Billion in five years and PIA was no exception. Now a question arose, he said, as to why there were a few airlines which, despite this obvious setback, still made money. The handful of airlines, that made a profit did so because of three reasons, he opinioned. The first was because of their having fuel efficient airplanes which PIA has now begun to acquire, and second because of their organizational efficiency which PIA was trying to achieve.

He said that by April 2007 the fuel guzzling old PIA fleet Will become 1/3 new and the fleet will have changed its composition, with the acquisition of fifteen newer planes, thus changing the fleet age from the current 21 years to 11 years. He mentioned here that the PIA Board had approved 10-year to be the consistent fleet age, which meant that there will be a continuous airplane replacement activity in PIA, like 777 in 2003 and ATR in 2005. This will have two important effects on the airline, the financial managers will be consistently active, leasing or buying new airplanes to maintain the average age, and the engineering will also be consistently involved determining the equipment requirements.

He said, decision makers are required, non-decision makers won’t last in the organization as they were no good for themselves, for the organization or even for society. Decisions have to be taken even if you are 80% wrong and 20% right. You can be groomed to excel. PIA has talented people and they need to be helped to achieve their full potential. In doing this “communication is of essence” and he advised the assembled delegates to push the people at the head office for their needs and requirements, to communicate. They can bypass all channels if the matter is of importance for the airline and approach him directly. All of them were chosen for their capabilities, and neither was everybody brilliant. It is a mixed bag always but we will have to work as a team, he added.

The Senior Vice President Sales of PIA, under whose auspices this conference was organized, said that there was 12% growth in the last two years in passenger revenue and 17% growth in cargo that was all eaten up by the rising cost of fuel. He defined the target of Rs.74 billion to be achieved by the station heads of PIA in 2007. The target for seat factor for 2007 was set at 76%, he said. He addded that for the month of January this has already been achieved and praised their efforts and urged them to keep up the same seat factor percentage for the whole year as targeted. The conference will end tomorrow after all Station Heads have made their presentations.

Source: The Nation

[F27]

1.. what is the time frame wherin a fuel efficient plane acquired on lease is paid off?

2.. with MoD calling the shots how can you achieve organizational efficiency?

3.. when u are not buying /leasing planes the financial managers develope fat derrieres.

4.. when u are not buying/leasing planes the engineering fails to determine the present fleet equipment requirements.

5.. If 80% decisions you take are wrong then air accidents can be classified into this (80% wrong) bracket.

[Adnan Anwar]

1.. what is the time frame wherin a fuel efficient plane acquired
on lease is paid off?

It depends on what cost the aircraft was acquired on and the lease terms. Normally lease means after the end of lease, aircraft is returned back to owner.

[DC10]

1.. what is the time frame wherin a fuel efficient plane acquired
on lease is paid off?

It depends on what cost the aircraft was acquired on and the lease terms. Normally lease means after the end of lease, aircraft is returned back to owner.

PIA wallas' briefed the Senate Standing Committee in 2006 that their B777 will recover their cost in 25 years(sic).