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PIA to face further losses

Discussion in 'Pakistan Economy' started by sparklingway, Jun 11, 2010.

  1. sparklingway

    sparklingway SENIOR MEMBER

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    Low-cost Flydubai to start Pakistan flights from 21st
    Friday, June 11, 2010
    By Saad Hasan

    KARACHI: A low-cost airline of Dubai will start flights to Pakistan from June 21 — the peak of summer season when the number of passengers heading to Middle East usually surges, officials told The News.

    Flydubai, a subsidiary of Emirates for cheap-fare seekers, has been allowed to operate daily flight seven days a week, a senior Civil Aviation Authority (CAA) official said.

    “Karachi is open skies for Dubai. So there is no bar on Emirates and other Dubai airlines to fly to the city,” said Khawar Ghayas, an official of the CAA’s Air Transport directorate. “But they have not been allowed access to the north (Lahore and Islamabad).”

    Entry of another airline will prove to be a tough competition for Pakistan International Airlines (PIA) and other two private carriers, Shaheen Air and Airblue, industry officials said.

    Flydubai was supposed to launch the flight from March, but faced stiff resistance from the local airlines and aviation authorities. However, they had to give in after interference from the “highest level”, they said.

    The decision is particularly painful for PIA’s senior management, which is facing the wrath of the parliamentarians over its financial losses, but had been denied more flights to Dubai.

    “It has been more than six months since PIA sought permission from Dubai to start flights from Sialkot and we haven’t been given permission,” a senior airline official said.

    “They are openly disregarding the air services agreement, but the whole nation seems to be helpless.”

    Under the agreement, Pakistani airlines can operate to Dubai from any destination in the country.

    Similarly, Emirates can operate to Karachi unlimited number of flights.

    “This is very bad for PIA’s business. Everyone says that the airline needs internal reforms, while they are conveniently ignoring growing penetration of the Gulf-based carriers, which are eating our revenues,” the official said.

    According to a recent PIA survey, out of the total international traffic from Pakistan, 81 per cent is going through the Gulf carriers. About 77 per cent of these passengers are destined for Europe and the United States.

    PIA posted a 23 per cent surge in its financial losses to Rs2.59 billion during the first quarter of the current year against Rs2.04 billion incurred during the corresponding period last year.

    Faced with accumulated losses of over Rs70 billion, political interference in managerial affairs and most of the airplanes of old make, PIA is often forced to take stopgap measures like making out of schedule stops.
     
  2. fatman17

    fatman17 PDF THINK TANK: CONSULTANT

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    each year such state-run enterprises are costing the country Rs, 65 billion in losses. PIA employment ratio / aircraft is the highest in the world - something like 226 pax / aircraft - compare that to Emirates which has something like 26 pax / aircraft. - no wonder why PIA is in a loss - these enterprises are used by govt in power (esp PPP) to give 'free-loaders' jobs as part of their roti, kapra, makan campaigns.
     
  3. Ahmad

    Ahmad SENIOR MEMBER

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    Emirates is very famous among pakistanis, it is one of the best airlines. by the way, how is PIA compare to emirates? its services, plane, safety etc.
     
  4. fatman17

    fatman17 PDF THINK TANK: CONSULTANT

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    u r joking???:rofl::rofl::rofl:
     
  5. humblehobbes

    humblehobbes FULL MEMBER

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    OFf topic, but I would like Mr. Fatman to explain the last 2 sentences in his quote.
     
  6. Evil Flare

    Evil Flare SENIOR MEMBER

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    Why not privatize this $hit .
     
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  7. sanasahil

    sanasahil FULL MEMBER

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    PIA is a rubbish Air line and their services are not good as i traveled via PIA and as compared to other they have Third class services... They charge more than good airlines and still they are unable to provide good services...


    Dubai air line seems to be very good and hope for the best and better!
     
  8. fatman17

    fatman17 PDF THINK TANK: CONSULTANT

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    :undecided::coffee:??
     
  9. fatman17

    fatman17 PDF THINK TANK: CONSULTANT

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    right idea - who will want it - Rs, 70 billion in losses - 26,000 employees, except for the B777s and the ATR's all a/c are 'obsolete', all experienced pilots and engg's have joined middle-east airlines for better industrial terms.
     
  10. deesu

    deesu FULL MEMBER

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    Its the same case with our govt airlines.... These govt workers and the politicians are born to spoil and bring down everything they get into...
    If our govt airlines remained with the Tata's it would have been great by now...
    sorry for being a bit off topic...
     
  11. Ahmad

    Ahmad SENIOR MEMBER

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    where i live pakistanis like the emirates, but if it is not famous among them overall then i dont know. at the same time you cant deny the fact that emirates is one of the best airlines.
     
  12. sparklingway

    sparklingway SENIOR MEMBER

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    The employee/plane ratio was up around 330 in the mid '90s. Then there were the golden handshakes and it came down to early 200s and now it's up in the middle 200s again.

    PIA has to be privatized. Sell 45% shares and we'll get a profitable company within an year.
     
  13. Hutchroy

    Hutchroy FULL MEMBER

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    Are you sure that the figure of 26,00 employees is correct?

    With about 41 Aircrafts PIA (basis 250 Employess per Aircraft) Employee Figure would be around the 10,000 mark.
     
  14. sparklingway

    sparklingway SENIOR MEMBER

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    Minister for Defence (Ch. Ahmed Mukhtar) in the National Assembly Questions Session, 8th October, 2009

    Minister for Defence (Ch. Ahmed Mukhtar) in the National Assembly Questions Session, 11th March, 2009

    Total Employees :- 17,996 and employee to aircraft ratio of ratio of 418 according to this report published December 28, 2008 based on AGP report for FY 06-07:- Daily Times - Leading News Resource of Pakistan

    Hence employee to aircraft ratio:-

    June 2007 : 418
    Dec 2007 : 410
    Dec 2008 : 404
    Mar 2009 : 427

    Total Employees are around 18,000. Seems we were being modest in our estimations of the employee per aircraft ratio. It's a way bigger figure.

    For a comparison, different US Airlines:-

    [​IMG]

    But do note that all major US airlines overwork their pilots and staff and are notorious for bad employee practices.

    Let's look at international figures then.

    Indian financial industry complaining about "high" employee per aircraft figures of 276 in Indian Airlines. (Source:http://www.financialexpress.com/news/high-employee-per-aircraft-ratio-hits-indian-airlines/163442/)

    305.64 for Thai Airways (Source : http://www.staralliance.com/en/about/airlines/thai/)

    136.93 for Singapore Airlines (Source : http://www.staralliance.com/en/about/airlines/singapore-airlines/)

    96.58 for Turkish Airlines (Source : http://www.staralliance.com/en/about/airlines/turkish-airlines/)

    83.17 for Air China (Source : http://www.staralliance.com/en/about/airlines/air-china/)

    202.47 for Lufthansa (Source : http://www.staralliance.com/en/about/airlines/lufthansa/)

    112.3 for Egypt Air (Source : http://www.staralliance.com/en/about/airlines/egyptair/)

    153 for ANA (Source ; http://www.staralliance.com/en/about/airlines/ana/)

    Of course the fact that bigger companies in other countries do not handle engineering, fleet management, flight kitchen and baggage handling on their wn and hire other companies for these purposes while PIA handles all these using its own divisions effects the ratio but it is still way too ginormous a number. PIA is most certainly a huge burden.
     
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  15. Nav

    Nav FULL MEMBER

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    PIA is one of the poor dumbest Airline , they r Always late , air staff behaviour is very rude.. Etc etc Etihad Is gud