KARACHI, Oct. 25 (APP): The Board of Directors of PIA met here Tuesday under the chairmanship of Tariq Kirmani and reviewed the recent performance and future plans of the airline.
A PIA press release said the improvements in operational indicators translated into an increase of 10% in overall revenue during July-September 2005 over same period last year.
It said aggregate revenue was recorded at Rs. 15,981 million in this quarter as against Rs. 14,556 million last year denoting an improvement of Rs 1425 million.
Operating expenses, excluding fuel were contained to within 1.1%. Fuel expense, however, driven by record increases in global prices, continued to rule the roost, adversely impacting the gains in revenue PIA's fuel bill in the last quarter increased by a phenomenal 52% over the corresponding quarter last year totaling Rs. 7,140 million (2004: Rs. 4,704 million).
The PIA Board of Directores noted the progressive growth of key operational indicators of the airline with passenger traffic increasing by 12% and passenger seat utilisation improving from 71% last year to a record 80% in the quarter.
Passenger seat utilisation at 80% was better than all the leading competitors in the region. As a result of several marketing initiatives taken in May 2005, PIA was able to recapture its lost market share in targeted markets.
PIA's share of domestic passengers went up from 46% in April 2005 to 58% in July-September 2005.
Similarly, its share of international passengers ex/to Pakistan increased from 43% in April 2005 to 47% in July-September 2005. It has thus reasserted is position as he marketleader in an increasingly competitive environment.
The board noted that the growth in traffic was achieved despite reduction in capacity by 0.9% during the same period. Matching deployment of capacity with demand resulted in PIA's fleet utilisation outperforming the industry averages for all the aircraft types in PIA's fleet.
The board was apprised of the strategies being adopted in key areas of the airline to enhance revenues, cultural costs and improve standard of service.
This included proactive marketing decision-making to stay ahead of competition, re-engineering operating procedures to economise on fuel burn-off, restructuring and re-organising human resources so as to improve employee productivity, disinvestment in non-core activities and instituting control mechanisms for containing the controllable costs.
The board was informed that the airline was confident that its multi-pronged strategies on targeted fronts will opt it on the path of sustained profitability.
The board appreciated the various measures being taken by the management to steer the airline through these difficult times faced by the entire aviation industry.
The meeting was attended by Director General Civil Aviation, Air Marshal (Retd) Pervez Akhtar Nawaz, Additional Secretary Ministry of Defence, Maj. Gen. (Retd) Muhammad Ashraf Chaudhry, Asad Ali Khan, M.H.K. Khaishi, Javed Saifullah Khan, Dr. Sughra Junejo, S. Ali Raza and Kamal Afsar.
Source: Associated Press of Pakistan
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