PIA to acquire 29 planes in 3-4 years: Tariq Kirmani

[Abbas Ali]

MULTAN, April 16 (APP): Chairman and Chief Executive Officer of Pakistan International Airlines (PIA), Tariq Kirmani said on Sunday that the national airline would be acquiring 29 new planes during next three to four years under a forward-looking investment plan.

He was addressing a meeting of PIA officials from Multan, DG Khan, Bahawalpur and Rahimyar Khan at a local hotel.

The initiative of acquiring new planes was aimed at improving air travel services further, enhancing average age of a plane by seven to nine years from existing 21 years and meet overall requirements of the present cutting-edge technology age to match the best of the standards in airline business, Tariq Kirmani said.

He said, twelve Boeing 777 planes would be added to PIA. Five of them have already reached, three more would be here in 2007, around a year ahead of delivery schedule, while four more would come sometime later.

Kirmani said that Fokkers would be replaced by seven ATR planes, three of them to be delivered this year including one in May, the other in October and the third in December. Their delivery is expected to materialize by the year 2007.

Boeing 737 would also be replaced by A320 or A321 depending on the economic situation.

Some of the planes would be acquired through long lease and others to be purchased, Chairman PIA told newsmen after the conclusion of the meeting.

He expressed concerns over rising prices of oil touching US$ 70 per barrel saying it was 47.5 per cent up compared to last year and was eating away 42 per cent of the revenue of the airliner. Jet fuel cost has risen by Rs 8.5 billion, from Rs 18 billion last year to Rs 26.5 billion now.

"It carries a crushing impact on airlines." He said, situation would become difficult if things keep moving this way.

When asked about measures to tackle the situation and whether there are chances of fare raise, Tariq Kirmani said, first option is to cut administrative cost which we are doing right now. "Or, we will have to go for a review to raise fare, but the only way to do it is to be in compliance with the competition." "We will have to remain close to the competition", he added.

Mr. Kirmani said, PIA has improved a lot during last year marking a reduction in complaints from 48 per cent of the 160 comments cards per week last year to only 19 per cent of the 2000 comment cards per week this year. He said, he wants PIA to enter a zero-complaint next year. Passengers have been giving favourable comments to PIA on the comments cards on its improved level of services.

The year 2005 showed an operational profit of Rs 3.5 billion in a significant jump from Rs 54 million operating loss in 2004.

Other factors including load of passengers, plane utilization were showing healthy trend while share price in the stock market doubled in a year, he added.

He also mentioned new appraisal system for evaluation of performance of officials saying it was one of the best systems in the world. He said, some 1866 officials were promoted in PIA this year under this system and hoped that it would bring a healthy change in the organization.

Earlier, district manager PIA Multan Bashiruddin Khan, in his address of welcome, informed the Chairman PIA that Multan PIA revenue jumped from Rs 450 million to Rs 1 billion in just two years showing a handsome increase by 137 per cent.

Officials also gave briefing to the CEO on new Appraisal System.

The CEO PIA is also scheduled to take a briefing from PIA officials at Multan office and to visit Multan Chamber of Commerce and Industry (MCCI).

Source: Associated Press of Pakistan

[mohammad abdulaziz]

No doubt, PIA has been pursuing a highly ambitious investment plan to transform the aged fleet into a sophisticated and modern fleet and this is likely to reflect positively on the performance and image of PIA. Furthermore, the management is doing a commendable job in curtailing the costs. However, fact remains that these measures are not enough and PIA management needs to take further remedial measures expeditiously to steer the airline out of this situation. It is really painful that in 2003 PIA made a profit of around RS. 3.0 Billion whereas even after taking numerous cost cutting actions and registering commendable increase in Revenues, PIA’s substantial profitability turned into a collosal loss of RS.4.5 Billion in the year 2005. I know unprecedented increase in oil price has been eating all the positive developments. However, PIA management’s challenge under these circumstances should be to at least protect the airline from becoming loss making entity (if registering profitability is uphill task at the moment), as it may jeopardize the effective implementation of PIA Business Plan.

Do you foresee that PIA will become profitable in the near future? Do you guess, what measures PIA could possibly take to deal with this situation?

[B777240ER]

7 more B777's to arrive
7 ATR-42 to replace F27
7 A320/1 to replace B737

So PK plan to get 8 more aircraft - B748?

[flyingsystem]

7 more B777's to arrive
7 ATR-42 to replace F27
7 A320/1 to replace B737

So PK plan to get 8 more aircraft - B748?

He said, twelve Boeing 777 planes would be added to PIA. Five of them have already reached, three more would be here in 2007, around a year ahead of delivery schedule, while four more would come sometime later.

No, I think you have to add the 5 777 already in the fleet, so it means there are only 3 more unknown new aircrafts, aren't they??!!

[mohammad abdulaziz]

When asked about measures to tackle the situation and whether there are chances of fare raise, Tariq Kirmani said, first option is to cut administrative cost which we are doing right now. "Or, we will have to go for a review to raise fare, but the only way to do it is to be in compliance with the competition." "

We will have to remain close to the competition

", he added.

How close PIA fares are to competition because it will show how much room is available to increase fare to overcome this situation?

[raza]

Why A320 or A321 instead of 737 NG or other 737 series.
There was nothing stated about the freighters A310 F !!??

[Abdullah Saleem]

7 more B777's to arrive
7 ATR-42 to replace F27
7 A320/1 to replace B737

So PK plan to get 8 more aircraft - B748?

He said, twelve Boeing 777 planes would be added to PIA. Five of them have already reached, three more would be here in 2007, around a year ahead of delivery schedule, while four more would come sometime later.

No, I think you have to add the 5 777 already in the fleet, so it means there are only 3 more unknown new aircrafts, aren't they??!!

Salam
7 777's
1 Boeing 777-200ER (on ten year lease)
2 Boeing 777-200LR (on lease)
4 Beeing 777-300ER (1 on lease)

[raza]

I think the three unknown aircrafts are the A310F

[Abdullah Saleem]

I think the three unknown aircrafts are the A310F

Salam
ATR 72 or A310F

[Adnaan786]

I hope this means they will continue to hire pilots for a few more years.

[B777240ER]

I think the three unknown aircrafts are the A310F

Salam
ATR 72 or A310F

I thinks that ATR-72 and A310F

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