PIA & Deregulation

BOEING777 · Post by **BOEING777** » Tue Aug 30, 2005 12:02 pm

How many people here feel that more deregulation will serve Pakistan better by enabling more competition and choice for passengers rather than leaving monopolistic routes served only by PIA?

EK has done a fantastic job of being able to serve new destinations by creating DXB into a major hub-

PIA has 3 rather wasted airports in LHE/ISB/KHI: I suspect that if Pakistan had competition on key routes to say, the EU/UK, PIA would be forced to lower fares-

When does Airblue start flying to the UK?

Shaheen Air has stated that it would like to fly to the UK too. Why should the Pakistani Govt support just PIA and ignore the enterprise ambitions of those airlines that want to serve passengers for cheaper fares than PIA?

After all, isnt competition better than protectionism?

Kashif · Post by **Kashif** » Wed Aug 31, 2005 2:26 am

Well we are slowly getting there. The speed CAA has shown after the government told them to open up for the private air industry is quite phenomenal.

Let's hope we know can see the privatization of PIA. Afterall if you de-regulate in order to accommodate the private sector, PIA should also be able to compete with the private sector on equal terms

Exciting times ahead

BOEING777 · Post by **BOEING777** » Wed Aug 31, 2005 10:22 am

If PIA were privatised tomorrow, it wouldnt last a week.

Its amazing that PIA created EK- and look where EK is and look at PIA.

Says it all really....

pk757 · Post by **pk757** » Wed Aug 31, 2005 2:52 pm

hmm i do agree with th efact that COMPETITON is always healthy, but ppl plzzzzzzzz stop victimizing and picking on PIA and stop being sooo patheically sympathetic with AIrblue and Shaheen Air!
PIA is offerin quite reasonable fares and it aint the monoply that gets PK its pax ok! it is the direct connection on trunk routes like PAk-UK plus baggage allowance and convinient timings that bag their flights a full load now i dont understand y it bites ppl in the ass if PIA is doin good???

BOEING777 · Post by **BOEING777** » Wed Aug 31, 2005 3:40 pm

pk757 wrote:it is the direct connection on trunk routes like PAk-UK plus baggage allowance and convinient timings that bag their flights a full load now i dont understand y it bites ppl in the ass if PIA is doin good???

If that isnt a monopoly then I dont know what is! I wasnt glorifying Shaheen or Airblue- I merely used them as reference as competition.

PIA posted a loss a few days ago- so I cant see how its "doin good" as you said.

Moreover, how many airlines compete with PIA on LHR/LHE & MAN/LHE?

None- exactly- so PIA has NO incentive to lower fares at all. Id rather pay less and stop off in Dubai with EK than the extortionate fares PIA charges and PIA cannot match EK for service.

Its precisely because PIA has no competition that it rests on its laurels. Once deregulation and private entrepreneurship can start, perhaps PIA will become more client focussed like QR/EY/EK/GF et al.

Adnaan786 · Post by **Adnaan786** » Wed Aug 31, 2005 3:45 pm

PIA is offerin quite reasonable fares and it aint the monoply that gets PK its pax ok! it is the direct connection on trunk routes like PAk-UK plus baggage allowance and convinient timings that bag their flights a full load now i dont understand y it bites ppl in the ass if PIA is doin good???

The thing is they're not doing good. They once again failed to make a profit, and probably aren't forecasting a profit for some time.

No matter how much you love PIA, you can't deny the fact they've been a failure for some time now. How can you not make profit flying in and out of your country with minimal competition. I think deregulation will be a big eye opener for them, which is why I think they are deregulating slowly, to allow PIA to get it's act together first.

BOEING777 · Post by **BOEING777** » Wed Aug 31, 2005 3:52 pm

^

Thank heavens im not the only voice of reason!

pk757 · Post by **pk757** » Wed Aug 31, 2005 6:52 pm

well ok i respect that fact that u ppl have your own opinions
but lemme just say one thing , i really really do ot consider PK confronted by EK,SV,GF,KU,QR,TG TO BE TERMED AS MINIMAL COMPETITION!!!!
I MEAN WAKE UP 6 MAJOR CARRIERS RE GIVIN COMPETITION OK
NOT TO MENTION HOW UNFAIRLY EK IS SHOVIN PAX OUT OF KHI!!!!!!
what about the reciprocal basis???? still ppl fly PK

i agree pk does lack in service standards and it cannot be compared to EK or QR but then again can PAKISTAN be campared to U.A.E OR QATAR??

what other carrier offers generous baggage allowance , no language problems and doesnt leave out to the gulf in the unchoiciest of the timings?

BOEING777 · Post by **BOEING777** » Wed Aug 31, 2005 7:36 pm

pk757 wrote:i really really do ot consider PK confronted by EK,SV,GF,KU,QR,TG TO BE TERMED AS MINIMAL COMPETITION!!!!

PIA doesnt compete with a single one of those airlines on the most "profitable" Pak/UK flights, does it?

If for example, I want a direct flight from Heathrow to Lahore- apart from PIA, who else competes on that route?

Thats correct- no one. Hence: monopoly.

BOEING777 · Post by **BOEING777** » Fri Sep 02, 2005 10:27 am

viewtopic.php?t=2936

Perhaps now with some serious competition to face, PIA will try and operate more effectively and give passengers a better service than they have currently been used to

Charliedelta11 · Post by **Charliedelta11** » Sat Sep 03, 2005 3:15 pm

first off..u probably didnt read the entire article..PIA did get a 13pc increase in revenues...the only reason why it went into a loss was because of rising fuel prices...the only reason why air blue..shaheen and aero asia did not go into losses was because they are operating only on routes where there is max pax capacity..PIA on the other hand HAS to operate flights to NBO...KUL..and other such destinations even if there are just 50 passengers on board because cancelling flights would mean turning away its customers..so dont be so naive and biased as far as PIA's concerned..u dont see emirates going into a loss because of the fact that its being run by a bunch of filthy rich sheiks...

B777240ER · Post by **B777240ER** » Sat Sep 03, 2005 3:34 pm

PIA did get a 13pc increase in revenues

Due to making tickets cheaper.

Remember revenue is not profit

BOEING777 · Post by **BOEING777** » Sat Sep 03, 2005 3:38 pm

Charliedelta11 wrote:first off..u probably didnt read the entire article..PIA did get a 13pc increase in revenues...the only reason why it went into a loss was because of rising fuel prices...the only reason why air blue..shaheen and aero asia did not go into losses was because they are operating only on routes where there is max pax capacity..PIA on the other hand HAS to operate flights to NBO...KUL..and other such destinations even if there are just 50 passengers on board because cancelling flights would mean turning away its customers..so dont be so naive and biased as far as PIA's concerned..u dont see emirates going into a loss because of the fact that its being run by a bunch of filthy rich sheiks...

I did read tha article in its entirety- and fuels costs aside, how PIA managed to lose money inspite of increased revenues points to money being used elsewhere (personnel perhaps?) thats forced its cost base up.

As for PIA running flights with 50 odd pax to NBO/KUl etc- why have routes like that if the breakeven is so high? Is it worth the hassle? Sure you turn away customers- but at some point you have to draw a line under what is profitable and what is not.

Sure, EK has good financial backing, but the CEO is a Westerner- its not all about having money- its about how you use it. Im not PIA bashing, Ive flown with them nearly 50 odd times- my point is, is that PIA is wasteful in its resources, and would struggle if it had direct competition on routes from Pakistan to the UK and beyond..

...part of the reason why deregulation is slow, to protect PIA- not consumers.

Adnaan786 · Post by **Adnaan786** » Sat Sep 03, 2005 4:54 pm

What Pakistan needs is a low-cost airline. It would achieve miracles. A country with the population that Pakistan has, and the shear size of the country, it is obvious air travel is a necessity to get from one city to the next. The only reason people don't travel by air at the moment is simply because they can't afford it. Make it affordable for everybody, and sit back watch the boom. It's almost too easy.

BOEING777 · Post by **BOEING777** » Sat Sep 03, 2005 6:17 pm

^

That will happen as soon as deregulation fully occurs and PIA is exposed to some proper competition....