• Friday, August 14, 2020

PM approves acquisition of five Boeing 777 aircraft for PIA

Discussion in 'Pakistan Economy' started by cb4, Apr 23, 2014.

  1. cb4

    cb4 ELITE MEMBER

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    Prime Minister Nawaz Sharif gave Pakistan International Airlines (PIA) approval to acquire five Boeing 777 aircrafts, as he insisted on a transparent privatisation process for the ailing state enterprise.

    Chairing the meeting held at prime minister’s house in Islamabad, Nawaz also gave go ahead to devise strategy to settle PIA legacy loans and empower Board of Directors to run the airline on professional basis with special emphasis towards improvement of service standards.

    The meeting was also attended by finance minister Ishaq Dar, Special Assistant to prime minister Shujat Azeem, Secretary Aviation Muhammad Ali Gerdazi, DG Civil Aviation Air Marshal (Rtd.) Muhammad Yousaf and Managing Director PIA Muhammad Junaid Yousaf.

    “PIA was our national pride and its efficiency and high quality service were its hallmark. It also set examples for other airlines. It is cause for national embarrassment as its performance has deteriorated at breath-taking pace over the past decade. It is now neither efficient nor profitable. It incurred losses around Rs 183 billion. The poor service delivery and over-employment in PIAC have been grave problems. Perhaps some efforts were made to turn it around in the past, but there has been no improvement in its efficiency or profitability. Pilferage also continues unabated in PIAC,” said prime minister.

    The premier further said that the government will not interfere in the privatisation of PIA and would encourage the privatisation to be carried out through competitive and transparent process without preemptive downsising.

    Showing confidence on PIA’s Board of Directors, the premier said the government would extend its in full cooperation in streamlining PIA.

    Nawaz was informed that the national flag carrier is presently in the process of acquiring 11 A320 aircraft on lease with deliveries starting from June 2014. With Additional 05 Boeing 777 aircraft, PIA will be in a better position to offer enhanced services to its passengers, increase revenue, destinations, flight punctuality and reduced maintenance costs

    Nawaz was also briefed about the steps that have been taken to overhaul the PIA to restore its glory. The meeting was informed that out of total 34 aircrafts, 24 are operational.

    PM approves acquisition of five Boeing 777 aircraft for PIA | Pakistan Today
     
  2. khanboy007

    khanboy007 FULL MEMBER

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    earlier on these were on the cards, while the other 5 were already confirmed, Alhamdulillah they made it :D

    FYI they are also renovating interiors of aircrafts :)

    I hope they improve their service :tup: by offering a menu (to start off)
     
  3. dawn_news

    dawn_news BANNED

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    Can anyone tell me when will PIA stop making losses? In 2013 alone PIA lost Rs42 billion!
     
  4. SHAMK9

    SHAMK9 SENIOR MEMBER

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    [​IMG]

    Their international Menu is quite good considering they cater to Pakistanis mostly.
     
    Last edited: Apr 24, 2014
  5. Al Bhatti

    Al Bhatti SENIOR MEMBER

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  6. imiakhtar

    imiakhtar FULL MEMBER

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    Until they pull out from most EU and Asia routes, in addition to cutting the workforce by 75%, they won't turn a profit.

    PIA said that circa 2002 when they placed the initial 777 order too.

    You only need to look over the border to see how overstaffing, corruption and low yielding VFR traffic with Air India, the new shiny 777s and 787s still can't turn a profit. That's despite India having a stable country and growing economy.
     
  7. Cheetah786

    Cheetah786 PDF VETERAN

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    Right after its sold off or closed
     
  8. xyxmt

    xyxmt BANNED

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    Masha-Allah things are happening all over, those who are blinded by hate wont see it though
     
  9. airmarshal

    airmarshal ELITE MEMBER

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    Not good at all! Service is the worst and the fare is the same for all airlines on the route I travel.

    Is PIA buying or leasing 777s? The report does not say anything about it.
     
  10. imiakhtar

    imiakhtar FULL MEMBER

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    Buying. PIA received a 50% discount and is paying around $150m per 77W.

    Standard practice when an order is firmed is a 10% deposit is paid for the production slots. The PIA order is firm and was so when placed initially in 2012:


    EVERETT, Wash., Feb. 20, 2012 /PRNewswire/ -- Boeing [NYSE: BA] and Pakistan International Airlines today announced a firm order for five 777-300ER (extended range) airplanes. Valued at nearly $1.5 billion at list prices, the order also includes purchase rights to Pakistan International Airlines for five additional 777-300ERs.

    Based in Karachi, Pakistan International Airlines has been renewing its long-haul fleet to accommodate increased demand for air travel as well as to introduce new routes.

    "With passenger traffic in our region accelerating, the new 777-300ER airplanes will continue to deliver the highest standards of technology and passenger comfort to our customers," said Capt. Nadeem Yousufzai, Managing Director of Pakistan International Airlines. "The spacious 777-300ER has been an integral part of our long-range fleet renewal program and its excellent operating economics, long range capability and reliability will allow us to expand into new long-haul markets."

    In 2002, Pakistan's flag carrier became the world's first airline to purchase all three passenger models of the 777 Family and in that year was also the launch customer for the 777-200LR (longer range) airplane.

    "We are proud that Pakistan International Airlines is a special Boeing customer that continues to invest and trust in the industry-leading capabilities of the 777 family of airplanes," said Marty Bentrott, vice president of Sales for the Middle East, Russia and Central Asia, Boeing Commercial Airplanes. "Boeing values the excellent partnership that was established over 10 years ago and one which we hope to continue well into the future as the airline progresses with its expansion plans."

    2011 was the best-selling year for the 777 program with a net order book of 200 surpassing the previous record of 154 orders set in 2005. The 777-300ER brings new twin-engine efficiency to the airline's long-haul fleet. The airplane is powered by General Electric GE90-115BLs, the world's largest and most powerful commercial jet engines. The airplane also features the Boeing Signature Interior that offers wider seats, wider aisles, more headroom and more seating flexibility.


    Boeing, Pakistan International Airlines Finalize Order for Five 777-300ERs - Feb 20, 2012

    This latest news is just a case of the current government leadership affirming their support for the old order.
     
  11. khanboy007

    khanboy007 FULL MEMBER

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    well thats good to hear now then they should give some options :)
     
  12. Black Eagle 90

    Black Eagle 90 BANNED

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    Precision Engineering Complex should be given to PAC. Also they should try to gain contract from Boeing, Airbus and other Western firms for Affordable parts supply from Pakistan.