PIA Reporting Improved Performance for Year 2019

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Abbas Ali
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PIA Reporting Improved Performance for Year 2019

Post by Abbas Ali »

PIA reporting improved performance in year 2019, according to news sources.

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PIA’s per kilometre income increased to PKR 9 from PKR 6.27 in 2018.

Seat factor rose to 81 percent from 77 percent in 2018.

Passenger revenue and cargo revenue increased.

Earnings through excess baggage, bulkhead seat charges also increased.

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Re: PIA Reporting Improved Performance for Year 2019

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Better management: PIA curtails financial deficit by 65.6pc

February 11, 2020

Islamabad
With effective policies introduced by the Pakistan Tehreek-i-Insaf (PTI) government, the Pakistan International Airlines (PIA) has started curtailing its financial deficit that witnessed a remarkable decrease in 2019 as compared to the corresponding year.

“During the period, the PIA losses have come down from Rs 32 billion to Rs 11 billion, projecting a decline of 65.6 percent,” according to an official source.

Recently, the Aviation Division in a written reply to the Senate had submitted that the decrease in losses was being achieved by enhancing revenues and curtailment of costs.

“The revenue side is being addressed by improving market share through realigning sales team, manning stations on merit, aggressive sales promotion, improvement in product and services, focusing on revenue generation through ancillary sources, mounting new flights and expanding on existing productive routes such as KSA and Gulf.”

While, the cost curtailment was being done by adopting austerity measures and bringing down unnecessary administrative expenses.

Source: Pakistan Observer
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Re: PIA Reporting Improved Performance for Year 2019

Post by Abbas Ali »

According to news sources:

In the first six months of 2019 PIA suffered operating loss of seven billion rupees.

In the first six months of 2018 PIA had suffered operating loss of seventeen billion rupees.

Revenue increased by forty-four percent and loss decreased by fifty-nine percent in the first half of 2019.

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Amaad Lone
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Re: PIA Reporting Improved Performance for Year 2019

Post by Amaad Lone »

might be a good idea to relaunch some shut European routes.

Frankfurt, Amsterdam, Rome, Athens, Hong Kong, Singapore, Bangkok, using a few used fuel efficient A330-200s.

Even routes where 777 is flying at 70% load PIA should move to A330-200.

Etihad just sold 18 A330-200s to a leasing company, might be a good idea to pick up a few of those, and keep the 777s for Saudi and UK routes.
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Abbas Ali
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Re: PIA Reporting Improved Performance for Year 2019

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In the first six months of 2019 PIA suffered loss before taxation of 37.90 billion rupees.

In the first six months of 2018 PIA had suffered loss before taxation of 32.18 billion rupees.

The airline was suffering loss of PKR 8,651,000/- per hour in the first six months of 2019.

The airline was suffering loss of PKR 7,400,000/- per hour in the first six months of 2018.

According to another report, the airline suffered loss of 33 billion rupees in the first six month of 2019.

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Amaad Lone
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Re: PIA Reporting Improved Performance for Year 2019

Post by Amaad Lone »

A huge part of this 32 billion is interest payments on the loans PIA has taken in the last 14 years.

PIA really needs EQUITY INJECTION. 300 BILLION TO PAY OFF THE DEBT.

Reduce interest payments and the losses can be reduced to levels that can be controlled.

But where will the equity come from?????????????
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Re: PIA Reporting Improved Performance for Year 2019

Post by Abbas Ali »

PIA suffered loss of 53.10 billion rupees in 2019.

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Urdu daily 'Awaz' (February 14, 2020, edition)

The airline had suffered loss (before tax) of 67.41 billion rupees in 2018.

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Amaad Lone
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Re: PIA Reporting Improved Performance for Year 2019

Post by Amaad Lone »

With bank loans of over 300 billion rupees and discount rate at 13.25% PIA will never be able to make a profit.

Operating losses plus mark up will only make PIA bleed more money.

One other option is to mortagage Roosevelt Hotel and Scribe Hotel in Paris to the maximum in dollars where mark up rate is lower and then bring that money back to Pakistan covert in rupees and pay off more expensive loans.

Use the profits from the hotel to pay off the mark up of dollar loans and PIA would have reduced its high interest rate loans by a large percentage leaving behind a dollar dominated loan which PIA is using a collateral that is also dollar based.
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