Well Boeing no doubt is great company like Airbus , that is not debatable.If we had the Money to burn hey get A380 Airbus
The argument was /is , that for 2.8 Billion Dollars , we could have purchased Ilyushin-96 , 400 class plane which is comparable to Boeing 777 ER class Boeing and comes with 25 year life cycle.
60 Planes , same comfort level , and almost same number of seats may be 3-4 less seats. Minor fuel advantage which is no factor when you have only 7 Boeing.
Now if we were comparing 60 Ilyushin-96 with 60 Boeing I would say yes , fuel economy saves money.
At present as proven by calculations , 60 Ilyushin was enough for country like Pakistan
a) Brand new 60 planes with 25 years life cycle
b) Approved plane by International Aviation Association and European Aviation.
c) Makes you $572-590 Million yearly (Fictional destination with $500 ticket calculations done before with fuel rate in thread)
The Problem:
The
Boeing 777 , while fancy makes you mere 52 Million and
PIA keeps crying they have no planes so employees take it easy and take long vacations
> PIA due to this bad decision now do leasing wet lease with kick back
> PIA cry they don't have to pay taxes because they have no planes
> Many employees drink tea and biscuit as they don't have planes to work on or off
People have ridiculed Ilyushin-96 platform just because its Russian plane ? Why
a) The plane is used by 6-9 International Airlines
b) The plane is used by Freight companies
c) Russian president flies in the plane
d) The plane came
only 3 years before Boeing 777 ER class.
e) The Plane has "International Standard Avionics & Engines"
f) Modern Interior
Caculation of Fuel Cost / Profits on Fictional Route
Total Distance on Fictional Route Karachi - Boston - 11397.37 km
Fuel Rate:
fuel burn: 11.18 l/km (Russian Ilyusin 96)
fuel burn: 10.34l/km (Boeing 777 ER)
Fuel Consumption Rate per gallon in 1 Trip :
Russian plane: 1,27,442 liters ---- >33666.6147 Gallons (US unit)
Boring 777 ER : 1,17,860 liters ---->31135.3181 Gallons (US unit)
Jet fuel price Per gallon $2.92/Gallon in USA (Real Price)
Reference:
Jet Fuel - Daily Price - Commodity Prices - Price Charts, Data, and News - IndexMundi (Real cost)
Cost of Fuel for 1 Russian Plane / per trip = $9,803 Dollars
Cost of Fuel for 1 Boeing 777 plane/ trip = $9,217 Dollars (Real Figures)
PROFITS ANALYSIS:
RUSSIAN PLANES
60 Russian Planes operating on this route would make you Money =
12,000,000. (12 Million) (Assume $500 fictional ticket)
Cost of Fuel for 60 plane = $588,180
Total Money Russian Planes could have made for PIA = $12,000,000 - $588,180 =
$11,411,820 (11.5 Millions profits 1 Trip 60 planes per trip)
BOEING 777 ER (So called Fuel Efficient Plane Purchase)
7 planes make you profit =
1.4 Million Dollars (Note assume a $500 fictional price ticket)
Cost of Fuel for 7 planes =
$64,519 Dollars (1 trip )
Total Profits = 1.4 Million- $63,518=
1.33 Million Profit only
Yearly Projection of Profits 1 Year:
52 Weeks in Year
[Assumption each plane makes exactly 1 Trip in week]
60 Russian Planes in PIA fleet would earn you = 11.5 MILLION x 52 =
$598,000,000 USD
7 Fuel Efficient Boeing 777 ER fleet would earn you = 1.4 MILLION x 52 =
$52,000,000 USD
Some money 2.8 Billion with which PIA bought Boeing 777 ER could have got
60 Russian Planes
$598 Million Profits vs 7 Boeing 777
$52 Million Profit
(Note : Fuel usage for year for 60 Russian planes would be $588,180 x 52 = 29 approx Million dollars which will have to be deducted from the total $598 Million but still $569 Million Dollar Profit. Now if PIA bought 60 Boeing 777 planes yes they would save on fuel but clearly just owning 7 planes is a loss deal vs 60 planes )
Picture is thousand word , on dependability of plane and prestige , and for Pakistan with tight budget , 60 planes could be life saver for PIA
Yes that is , Ilyushin-96, 300 class plane on official visit to Saudi Arabia
60 Russian vs 7 Boeing for a cash stripped company like PIA really makes you wonder
Ilyushin-96 (400 Class)
60 Planes, 598 Million Profits & all brand new fleet , Approval Rating High by customers
Boeing 777 (MERE 7 planes , end result shortage of planes for PIA)