PIA to buy 29 more aircrafts.

[Babushka99]

Tuesday, January 17, 2006

PM wants PIA to be world class airline

ISLAMABAD: Prime Minister Shaukat Aziz has called upon the management of Pakistan International Airlines (PIA) to transform the national flag carrier into a world-class entity.

“A passion for change and improvement is required to achieve the objective,” he said while chairing a meeting held on Monday to review the performance of PIA. Praising the airline’s improvements in several areas, he said more needed to be done to make PIA globally competitive and a carrier of choice.

He said that high oil prices were adversely affecting the airlines industry, so there was a need to improve productivity and competitiveness. He asked PIA’s management to take all decisions on commercially viable basis, increase frequency of flights and prepare growth and contingency plans. He also stressed the need to take cost-effective measures in procurement and operations of the airline.

Chairman PIA Tariq Kirmani informed the prime minister about PIA’s fleet renovation plans and said the airline planned to increase the number of aircraft during the next five years from 42 to 52. This will include replacement of existing aircraft and induction of 29 new aircraft, he said.

The prime minister was also informed that in 2005 PIA achieved highest productivity in 26 years. Its revenues were 13 percent up in 2005 as compared to 2004 and Rs 2 billion have been saved as a result of centralised procurement system introduced recently.

The managing director of the airline briefed the prime minister about new routes and more international and domestic flights of the PIA. Defence minister Rao Sikander Iqbal and state minister for defence Zahid Hamid also attended the meeting. staff report

http://www.dailytimes.com.pk/default.as ... 2006_pg5_7

[ammad]

I think out of new 29, 7 are ATR-42-500 plus 4 ATR-72 + 5 777 gives 16, can any one guess about 13 other aircraft?

[BOEING777]

I'd be more interested to see how these 29 airplanes are actually financed and purchased...

[SaadSaeed]

Hmm does it mean there will be a need for more pilots?

[Amaad Lone]

3 777-340ER
2 777-240LR
1 777-240ER (On lease from ILFC)
7 737-700 (Future 737-340 replacement)
7 ATR.42-500

The remaining nine planes I would imagine would be a mixture of 3 777-340ERs (747-300 replacement), and atleast 4 777-240LR/ER, for further passenger growth, and non-stop North American flights. I also see a requirement of a 45 ton long haul capacity freighter, considering the combis will have to go by 2008. So around two A310-300Fs.

The 777-240ER can also be used to replace the A310-300 on certain routes where the 192 seater is proving to be to small.

Unless PIA wants to introduce a new 250 seater (787) that will eventually replace the large A310-300 fleet.

Amaad

[Babushka99]

Here is the article that was written in today's edition of Dawn.

http://www.dawn.com/2006/01/17/nat5.htm

PIA plans to buy 29 aircraft




By Our Staff Reporter

ISLAMABAD, Jan 16: Pakistan International Airlines (PIA) will induct 29 new aircraft in its fleet, its Chairman Tariq Kirmani informed Prime Minister Shaukat Aziz during a meeting held at the Prime Minister’s House on Monday.

The meeting reviewed performance of PIA and considered ways to make it a more efficient world-class profitable organization.

“We have planned to increase the number of aircraft during the next five years from 40 to 52. The plan also includes replacement of existing aircraft and induction of 29 new ones,” the PIA chief added.

The prime minister was further informed that from March this year the airline would start flights to New York and Dubai whereas there would be would be three non-stop flights a week for Toronto.

Istanbul and Athens will be the new destinations for PIA and additional flights between Islamabad and London and Karachi and London are being planned.

The meeting was informed that two additional flights will be operated to Tokyo via Bangkok. On the domestic side, the number of flights will be increased between Karachi and other major cities.

The prime minister wished to make PIA a world-class carrier so that it could compete with top airlines in performance. He said a passion was required for change and improvement and asked the PIA management to strive to compete globally recognized best practices, take decisions which were commercially viable, increase frequency of flights wherever feasible and prepare growth and contingency plans.

He also emphasized the need to initiate cost-effective measures in procurement and operations of the airline.

The prime minister was also informed that during 2005 the PIA achieved the highest productivity in 26 years. Its revenue increased by 13 per cent in 2005 compared to 2004 and Rs2 billion were saved as a result of recently introduced centralised procurement system.

The prime minister was further informed that PIA’ under its “new tail scheme”’ had prepared a plan to promote country’s culture.

[ammad]

What is the source of 7 737-700?

[PK777]

I think out of new 29, 7 are ATR-42-500 plus 4 ATR-72 + 5 777 gives 16, can any one guess about 13 other aircraft?

When did PIA order ATR 72 ??

[Adnan Anwar]

I think out of new 29, 7 are ATR-42-500 plus 4 ATR-72 + 5 777 gives 16, can any one guess about 13 other aircraft?

When did PIA order ATR 72 ??

I think he meant to say planned ATR-72 acquisition. But as you know until you see anything in front of you, you cannot bank on PIA press releases.

I doubt PIA will totally dump the 747 fleet in favour of the 777's. Atleast that is my belief. PIA lacks cargo capacity and after the 2 747M's are gone in 2008, PIA will have a very negligable cargo capacity. I doubt PIA will order anymore 777's anytime soon because by 2007 PIA will 4 777-240ER, 2 777-240LR. That makes 6 777's and just 3 777-340ER cannot replace the capacity of all 6 747-300's in 2008-2009.

So what you all think?

PIA will have to find 2 or 3 747-400's to fullfil the high seat occupation seasonal roles. Also PIA badly needs a dedicated freighters, either A310 or may be 747's. It would be interesting, if it would be economical to possibly the convert the 2 youngest 747-300 in PIA's fleet to freighters.

[behramjee]

The ideal replacement options for PIA are the following :

12 A 310-300s replaced by 12 B 787-800s

07 Boeing 737-300s replaced by 7 Boeing 737-700s

07 Fokker F 27s replaced by 7 ATR 42-500 Turbos

06 Boeing 747-300s replaced by 06 Boeing 777-300ERs

12+7+7+6 equals 32.

[behramjee]

The meeting was informed that two additional flights will be operated to Tokyo via Bangkok.

Why are such statements being made when no slots at NRT are available. If there were EK and QR would have bidded big money for them.

I remember the old 1990s PIA B 747 route KHI-BKK-MNL-NRT lol...B 742s twice a week.

[behramjee]

But if PIA want 52 aircraft in their fleet, this would be my prefered breakdown :

10 Boeing 777-300ERs

05 Boeing 777-200LRs

04 Boeing 777-200ERs

14 Boeing 787-800s

09 Boeing 737-700s

07 ATR 42-500 Turbos

03 Airbus A 310-300 Freighters to be used on year round freighter flights to UK, FRA, USA, JED, DXB, BKK, KUL, China, Japan, India

[Adnan Anwar]

But if PIA want 52 aircraft in their fleet, this would be my prefered breakdown :

10 Boeing 777-300ERs

05 Boeing 777-200LRs

04 Boeing 777-200ERs

14 Boeing 787-800s

09 Boeing 737-700s

07 ATR 42-500 Turbos

03 Airbus A 310-300 Freighters to be used on year round freighter flights to UK, FRA, USA, JED, DXB, BKK, KUL, China, Japan, India

Interesting! Behramjee!

Pretty much! An all Boeing fleet except the ATR's, Hmm! I don't mind that but others audience of this forum, I would be interested in their reaction.

[AirBlue]

A beautiful break down behramjee !

I must say, if the B777 fleet is among those, the B747's will be fadded out for sure. But if we note, the headline is

PIA TO BUY 29 MORE AIRCRAFTS!

So it is in addtion to the ones stated before such as the ATR-42's and the B777 orders.

I am guessing that after the B777 fleet addition is complete and the ATR's aswell i.e. only B777, B737, A310 and ATR's are in the fleet, then the airline can/will start fadding the A310's out. WHY? Because they will wait for them to have alot of hours like the B74M's right now do. The B787's can start joining in as the A310's keep leaving.

Now a question: Can the current modified A310's with PIA be converted into A310F's ?

If yes, then the A310-325/ET's which they just got can be converted into freighters and stay with the airline doing flights like the ones Behramjee just stated above.

If PIA is in a state where they can purchase 29 more aircrafts, then instead of getting rid of the B743's, B734's and A313's, why dont they just lease them to other airlines ? Well ofcourse the B743's and the B734's should be sold soon but the A313's can be leased out to other carriers.

[ord]

But if PIA want 52 aircraft in their fleet, this would be my prefered breakdown :

10 Boeing 777-300ERs

05 Boeing 777-200LRs

04 Boeing 777-200ERs

14 Boeing 787-800s

09 Boeing 737-700s

07 ATR 42-500 Turbos

03 Airbus A 310-300 Freighters to be used on year round freighter flights to UK, FRA, USA, JED, DXB, BKK, KUL, China, Japan, India

I agree with the above except for the 9 737-700s. I think a good case can be made for the A319/A320/A321. For routes of ~ 3.5 hours or less, the A320s series is definately cheaper to operate.

Now, if they want to fly most of these flights in a 3.5-4 hour range, then the 737-700 makes more sense, as the winglets available with this aircraft significantly improve operating cost of the aircaft. (For shorter flights, the winglets are actually a liability, as the fuel saved due to the winglets is more than offset by the additional weight and cost of having these on the aircraft).

PIA should use these single aisle jets to setup an extensive hub operation at KHI, allowing convenient connections from KWI, DXB, AUH, MCT, etc. to DEL, BOM, MAA, Cochin, etc. Because most of these routes ex-KHI are relatively short (3 hours max), I would have to go with the A320 series, but PIA should look at the offers from both manufacturers before making a final decision.

*******************************

As far as A310 replacement, they should go for 787s, as they already have 777s and they will have cockpit commonality and because they are availabe in 200 and 250 seater versions, where as A350s are available in the 250-300 seat range, which is too much for most PIA routes.