Pakistan's national airline to sell planes due to fuel, maintenance costs

[fatman17]

Pakistan's national airline to sell planes due to fuel, maintenance costs

The Associated PressPublished: March 20, 2008

KARACHI, Pakistan: Pakistan's state airline says it plans to sell eight of its Boeing 747 airliners because of rising fuel and maintenance costs.

Pakistan International Airlines spokesman Chaudhry Mohammad Bashir said Thursday the eight planes were taken out of service a few days ago. Bashir said the airline has bought nine 777 airliners to replace the craft because they consume less fuel.

The airline is trying to sell the 747s on the international market, he said.

 

[smt]

i didnt know pia had that many jumbo jets

 

[Energon]

I'm actually baffled by the whole PIA debacle. Every news report states that the airline sector is booming in South Asia. Indian carriers are scouring the world to recruit pilots because there aren't enough Indian pilots to fill the necessary demand. Flight sectors to practically all parts of the world from Asia have grown exponentially, then why is PIA having these financial problems?

Also if I'm not mistaken, most airlines around the world are taking their 747s out of service on account of poor cost efficiency. Perhaps the PIA ought to convert their 747s into cargo aircrafts and put them to use. I'm sure there's a big market in China for cargo contractors.

 

[mujahideen]

The only reason why the PIA is suffering a loss because it is over staffed.

 

[Neo]

I'm actually baffled by the whole PIA debacle. Every news report states that the airline sector is booming in South Asia. Indian carriers are scouring the world to recruit pilots because there aren't enough Indian pilots to fill the necessary demand. Flight sectors to practically all parts of the world from Asia have grown exponentially, then why is PIA having these financial problems?

Also if I'm not mistaken, most airlines around the world are taking their 747s out of service on account of poor cost efficiency. Perhaps the PIA ought to convert their 747s into cargo aircrafts and put them to use. I'm sure there's a big market in China for cargo contractors.

Good questions Energon and there's an explaination for current malaise. Like any other South Asian airline PIA has the potential to grow much faster but there's a number of few internal aswell as external factors preventing the carrier to enjoy the boom:

Internal Factors:
- ageing fleet
- over staff
- incompetancy in almost every department due nepotism
- image and reputation

External factors:
- High cost of fuel
- High cost of ATC and maintenance
- The 2007 EU embargo for two third of the fleet serving EU hubs
- High competition from ME based carriers
- Loss of domestic markets to Air Blue and others
- Image and reputation

Fuel and EU's 2007 embargo on PIA to operate B747-200/300 and A310-300's are mostly to blame for current crisis. The embargo left PIA with 8 B777-200/300's to serve EU. Except for London's Heathrow and Gatwick flights the B777 is to big for PIA's other stations like Frankfurt, Paris CDG, Oslo, Rome FCO, Amsterdam or even Manchester.

Another problem is US' refusal to operate non-stop services between Pakistan and USA, the B777 was selected to operate non stop between Pakistan and New York, Chicago, Washington, Houston and LA. Now these flights are operated via Manchester resulting in longer flights.

 

[Cheetah786]

All crown corporations Must be privatized thats the only way for the government to stop bleeding do it today do it tomorrow thats the only solution.

 

[AgNoStiC MuSliM]

Privatize the White Elephant already.

Look at the major private airline in Pakistan, Airblue, that has experienced exponential growth in passenger traffic and revenues. If there are concerns about foreign ownership, attach conditions that mandate a majority stake by Pakistani entities.

Just ridiculous.

 

[Neo]

Privatisation indeed is right solution. Selling a stake to major foreign carrier like Emirates or Singapore Airlines first and then joining a major group like the Star Alliance or One Word Alliance.

 

[Quwa]

I would push to sell it to local Pakistanis - especially Air Blue. Air Blue is for low-budget travellers, so a service like PIA can allow them to cover higher income groups. They can also provide very good service for low-budget travellers by offsetting the cost deficit using PIA's profits.

 

[niaz]

PIA's decline started during ZAB time where every one wanted to join PIA as you could fly for free anywhere in the world. The situation worsened during BB's second tenure. I used to travel to Islamabad from London regularly and PIA had direct flights. I found that PIA was not for the fare paying passengers but for the employees. Business and first class seats were kept deliberately free so that the staff travelling free can be upgraded after the flight had taken off.

In the nustshell, I found PIA to be the " Worst people to fly with" and would not use PIA unless there is no other choice. On the other hand, I mostly use Emirates and Singapore Airlines. I find that these airlines provide the best service. For example I am travelling to Doha a week from now to attend Middle East Petroleum and Gas Conference. I am using Emirates; for businees class passengers Emirates provide free transporation to and from Dubai Airport. I am in Fujairah which is 2 hour drive from Dubai.

Emirates has expanded very fast despite the rising fuel costs; because they provide a very good service to the passengers . This is the lesson that PIA forgot after Noor Khan's era.