Airblue shows profit

[hasan saleem]

Is the TC-IEH acquired on lease by airblue a wet or dry lease?

Time period for the lease ?

Inter Airlines of Turkey have leased out all its A321s to pakistan. one going to airblue and the two to PIA

[DC10]

There you have it. So Air blue has not purchased the new planes. So it seems ED shall be flying over to the British Isles on foot.

[AirBlue]

k you really need to start reading properly mister ... the airplanes ED has purchased are going to be delivered 2008 onwards ... isn't that wat i said before ?

[Abbas Ali]

Airblue earns Rs 150m profit in 2006

KARACHI: Airblue, one of the private airlines of Pakistan, Thursday (December 28) announced a record operating profit of over Rs 150 million during the year 2006.

The airline has posted an increase in its operating profit from posting a loss of Rs 27 million in 2005 to a profit Rs 242 million in 2006.

A press statement issued here today said that the airline which started its operational activities with three Airbus A320 aircraft in its fleet at the launch of the operation on June 18, 2004 has added two A321 aircraft had been added to the fleet in February 2006. With the induction of the 6th Aircraft, Airblue has doubled its fleet and has more than doubled its capacity.

According to a copy of airlines audited accounts, the airline posted a net revenue increase of 162 percent. An exceptional performance was witnessed in the short term financing which was reduced from Rs 206 million to Rs 48 million, showing a decrease of 330 percent.

The highlights of financial performance for the 2006 financial year, as compared to the 2005 financial year, shows that passenger revenue increased from Rs 1,543 million to Rs 4,112 million (166 percent), cargo revenue increased from Rs 31 million to Rs 41 million (32 percent), net revenue increased from Rs 1,516 million to Rs 3,972 million (162 percent), cost of operations increased from Rs 1,452 million to Rs 3,524 million (143 percent), and fuel cost increased from Rs 519 million to Rs 1,475 million (184 percent).

Source: Daily Times

[Abbas Ali]

PIA Chairman Tariq Kirmani appeared in Mujahid Barevli’s live talk show ‘Doosra Pehlu’ on CNBC Pakistan channel on December 28. The show was nearing its end when I switched on the TV. One of the callers during the show asked how AirBlue is showing profits while PIA is making losses. The caller added that AirBlue also must be experiencing high fuel prices then why PIA blames high fuel prices for its losses.

Mr. Kirmani replied and said that two main reasons behind AirBlue’s profits are:

1) AirBlue has fuel efficient aircraft.
2) AirBlue has lesser number of employees per plane compared to PIA.

Mr. Kirmani said that to become a profitable airline, PIA will have to replace old aircraft with new fuel efficient aircraft, and reduce the number of employees per plane.

[ali_khan]

Air Blue seems to be making profit due to their small fleet size, small number of destinations (high yield routes mainly) and probably their office policies.

They are much more promising and sincere then PIA or any other Pakistani airline.