PIA Breaks Even at Operational Level

[war&peace]

PIA needs to make 5 Billion dollar annually

How did you calculate this number?

 

[Rusty]

My Father used to work for PIA in the 70s. It went from one of the most prestigious airlines to dumpster fire since then. It was really sad to watch.

Part of the resurrection needs to be reduction in airport tax. Half the ticket price is taxes at the airport. It's ridiculous.
You can go to India for like $200, but Karachi or Lahore costs minimum $500.

 

[Shane]

KARACHI: Pakistan International Airlines (PIA) has claimed that it has come out of losses at the operational level after quite a long time as its revenues slightly exceeded the operating cost in the quarter ended March 31, 2019.

“PIA has achieved breakeven at the operational level,” Adviser to PIA CEO Air Vice Marshal Noor Abbas told The Express Tribune. “It, however, may take three to four years to report a net profit.”

The state-owned airline’s revenue surged to an average of Rs8-8.5 billion a month in the January-March 2019 quarter compared to around Rs7 billion a month in the same period of last year. “The operating cost was slightly lower than the monthly revenue or was almost equal,” he said.

18 new planes, new routes planned for PIA

The adviser said a notable improvement in financial management came after the seat occupancy rate per flight increased to around 90% in the period under review compared to less than 70% in the corresponding period of previous year.

Moreover, the addition of four planes to the operational fleet after repair, which took more than a year, reduction in the number of employees, drastic reduction in the ticket reservation cost, increased load factor of cargo and increase in the number of flights on profit-making routes helped achieve these results.

“Such improvement in operations came following the change of management in November 2018 when Air Marshal Arshad Malik took charge as CEO of the airline,” he said. “PIA is doing well under the five-year business plan, which got approval of the cabinet very recently.”

He revealed that PIA had been saving roughly Rs1 billion a month since it acquired the new ticket reservation software from Turkey-based firm Hitit in October 2018. “The new reservation software is costing half of what PIA was paying to the US-based firm Saber.”

“The saving is playing a major role in turning around the airline,” he said.

Grounded planes return to air

The adviser said seven aircraft had been grounded for repair and maintenance at the time the new management took over the airline. Some of them had remained in the hangar for over a year due to lack of finances. “We have now put four of them in the operational fleet,” Abbas said.

PIA business plan to be ready by March

It became possible after the government extended sovereign guarantees for commercial loans worth Rs5.6 billion for repair and maintenance in February 2019.

“Another two grounded aircraft – Boing 777 AP-BHV and A-320 AP-BLV – will start flying by mid-May,” he said. “The required parts have arrived from original equipment manufacturers (OEMs) in the US and Europe.”

Cargo


load improves
He said the cargo load factor had also increased to over 70% these days compared to less than 50% about six months ago. “Accordingly, the share of revenue from cargo operations has increased to 7-8% in the total revenue compared to around 5% earlier,” he said.

New planes

He said the management had planned to increase the fleet to around 45 aircraft under the five-year business plan from 32 at present. “First of the new aircraft is expected to be acquired in the current calendar year.”

He, however, said it had not yet been decided whether the first aircraft would be narrow or wide-body plane. However, 60% of the 13 new aircraft would be narrow-body and the remaining would be wide-body.

HR rationalisation

He said the state-owned airline had started the process of human resources rationalisation. “We need to cut human resource by 25-30%. We may do so in the next two to three months. The rationalisation drive kicked off in January,” he said.

There are around 13,000 regular employees and another 3,000 outsourced employees of PIA.

He added the impact of HR rationalisation would not be at the mass level as 500-600 employees were leaving the organisation themselves every year including around 400 who were reaching the retirement age.

Routes rationalisation

He said PIA had increased the number of flights and started flying on around eight new international routes, mostly in the Middle East, since the change in management in November 2018. “PIA is also going to start flights on the Islamabad-Muscat route on April 23. This will be the ninth new route in less than six months.”

Besides, it has stopped and suspended flights on a couple of loss-making routes under the rationalisation programme.

https://tribune.com.pk/story/1954858/2-pia-reaches-break-even-operating-profit/

Remarkable and commendable turn around, AlhamduLillah and Kudos to Air Marshal Arshad Malik's team.

 

[AZADPAKISTAN2009]

How did you calculate this number?

Should be a bench mark for All Corporations owned by Pakistan , in Pakistan

 

[BHarwana]

The man we all need to thank for this achievement.

 

[AZADPAKISTAN2009]

Breaking even is not an achievement , achievement is 5 Billion Profits for State own entity
The Man is getting started , give him necessary encouragement and support


Ideally all these companies need to give up to 5 Billion in Profits yearly

• Pakistan International Airlines : 5 Billion Dollars
• Pakistan Steeles Mills : 5 Billion Dollars
• Pakistan Shipping Industry : 5 Billion Dollars
• Pakistan Railways : 5 Billion Dollars
• Pakistan Bus Transport Company : 5 Billion Dollars (This company does not exist)

 

[@@@]

I’m sorry but PIA should look into launching bullet trains. It’s the way of the future. Especially in a small country like Pakistan.

 

[waraich66]

KARACHI: Pakistan International Airlines (PIA) has claimed that it has come out of losses at the operational level after quite a long time as its revenues slightly exceeded the operating cost in the quarter ended March 31, 2019.

“PIA has achieved breakeven at the operational level,” Adviser to PIA CEO Air Vice Marshal Noor Abbas told The Express Tribune. “It, however, may take three to four years to report a net profit.”

The state-owned airline’s revenue surged to an average of Rs8-8.5 billion a month in the January-March 2019 quarter compared to around Rs7 billion a month in the same period of last year. “The operating cost was slightly lower than the monthly revenue or was almost equal,” he said.

18 new planes, new routes planned for PIA

The adviser said a notable improvement in financial management came after the seat occupancy rate per flight increased to around 90% in the period under review compared to less than 70% in the corresponding period of previous year.

Moreover, the addition of four planes to the operational fleet after repair, which took more than a year, reduction in the number of employees, drastic reduction in the ticket reservation cost, increased load factor of cargo and increase in the number of flights on profit-making routes helped achieve these results.

“Such improvement in operations came following the change of management in November 2018 when Air Marshal Arshad Malik took charge as CEO of the airline,” he said. “PIA is doing well under the five-year business plan, which got approval of the cabinet very recently.”

He revealed that PIA had been saving roughly Rs1 billion a month since it acquired the new ticket reservation software from Turkey-based firm Hitit in October 2018. “The new reservation software is costing half of what PIA was paying to the US-based firm Saber.”

“The saving is playing a major role in turning around the airline,” he said.

Grounded planes return to air

The adviser said seven aircraft had been grounded for repair and maintenance at the time the new management took over the airline. Some of them had remained in the hangar for over a year due to lack of finances. “We have now put four of them in the operational fleet,” Abbas said.

PIA business plan to be ready by March

It became possible after the government extended sovereign guarantees for commercial loans worth Rs5.6 billion for repair and maintenance in February 2019.

“Another two grounded aircraft – Boing 777 AP-BHV and A-320 AP-BLV – will start flying by mid-May,” he said. “The required parts have arrived from original equipment manufacturers (OEMs) in the US and Europe.”

Cargo


load improves
He said the cargo load factor had also increased to over 70% these days compared to less than 50% about six months ago. “Accordingly, the share of revenue from cargo operations has increased to 7-8% in the total revenue compared to around 5% earlier,” he said.

New planes

He said the management had planned to increase the fleet to around 45 aircraft under the five-year business plan from 32 at present. “First of the new aircraft is expected to be acquired in the current calendar year.”

He, however, said it had not yet been decided whether the first aircraft would be narrow or wide-body plane. However, 60% of the 13 new aircraft would be narrow-body and the remaining would be wide-body.

HR rationalisation

He said the state-owned airline had started the process of human resources rationalisation. “We need to cut human resource by 25-30%. We may do so in the next two to three months. The rationalisation drive kicked off in January,” he said.

There are around 13,000 regular employees and another 3,000 outsourced employees of PIA.

He added the impact of HR rationalisation would not be at the mass level as 500-600 employees were leaving the organisation themselves every year including around 400 who were reaching the retirement age.

Routes rationalisation

He said PIA had increased the number of flights and started flying on around eight new international routes, mostly in the Middle East, since the change in management in November 2018. “PIA is also going to start flights on the Islamabad-Muscat route on April 23. This will be the ninth new route in less than six months.”

Besides, it has stopped and suspended flights on a couple of loss-making routes under the rationalisation programme.

https://tribune.com.pk/story/1954858/2-pia-reaches-break-even-operating-profit/

Good , Currently per plan employee of PIA highest in world . All credit goes to PAF .

 

[ziaulislam]

Inform us when PIA achieve net break even.

With 450 billion of abnormally high loans and interest rates at 10%..that will be nearly impossible and PIA is not to blame for it

Anyother airline would have been closed before even hitting 200b

To PIA to be in profit it would need to have 60-80b in profits from negative !!

 

[BATMAN]

The man we all need to thank for this achievement.

View attachment 555025

Finally a professional.

Pakistan Bus Transport Company : 5 Billion Dollars (This company does not exist)

This is why all Pakistan bus transport companies are making profit.

 

[GumNaam]

https://twitter.com/x/status/1120030725502377984

 

[AZADPAKISTAN2009]

The new CEO in his own words described the situation of PIA when he assumed office

a) Employees were demoralized , and blamed for loses that their salaries were reason for problems. The Employees according to CEO were not main reason for losses
b) The Ground equipment for servicing baggage and other places like employee cafeteria was neglected
c) Planes were running on , extended routes instead of Optimized routes so extra 1-2 hour of fuel was being burnt per flight
d) Planes were wasted on loss making routes while high traffic routes were left unattended
e) Larger fees were paid to Ticket registration system , newer one from Turkey reduced the cost by 50%


One point he did not brought up but PIA now , does not gives free flights to Politicians and their Vast extended family

1 Politician with 20-35 member extended family all going to Trip to Disney Land in Europe on Free PIA ticket

 

[Pakhtoon yum]

good news but they should decrease their staff .

Or increase the fleet.

 

[AZADPAKISTAN2009]

Well Losses will 100% incur when your planes are flying , extra distance , vs minimum distance when your Management was unconcerned , extra fuel burned not 1-2 minutes but full 2 hours per flight costing massive amount of losses in term of fuel per flight.

Then they also gave example of Route between China-Japan , a big plane was making trips between two destinations while , Japan had restricted only 60% Passengers can arrive from China on PIA's flight so already the flight lost chance to make Profit

• Plane burned large amount of fuel
• And it only flew almost 50% capacity , can't fly with full load

Then Pakistan also shot in own foot by introducing open sky policy (RECENTLY CANCELLED)

Plus the new CEO also pointed out the various planes which should have been repaired instead their engines were , taken off the wings , and god knows what was done (Sold for money)

 

[war&peace]

Remarkable and commendable turn around, AlhamduLillah and Kudos to Air Marshal Arshad Malik's team.

Don't forget to name the visionary PM Imran Khan