@imiakhtar 
And it would be nice if we can have your thoughts on why PIA is in the mess it is and what can be done to fix it.[/QUOTE]
You're welcome.
I think a lot of the mess has been remedied by the professional decisions taken by PK management in the last few years for which they have to be commended. The main points I will summarise below:
- Cancellation and withdrawal from loss making routes such as Amsterdam, Frankfurt, Glasgow, Houston, Chicago etc
- Not bowing to political pressure and breaking the unions* which had far too much power.
- Reducing staffing and thus improving staff productivity
- Retirement of the 747 and 737 fleet and induction of the A320
- Looking forward with the 777 order swapped with the 787
- Implementing codeshares with Turkish, Etihad and others
(*unions can be a positive and a force for good. In Pakistan and PIA however, they are venomous)
What needs to be done further:
- Continue with network re-structure. Only UK and Mid-East flying is profitable at the moment. Look at further withdrawal from Tokyo, Paris, Rome, Copenhagen and potentially New York.
- There needs to be a major rethink of North America (Toronto and JFK) flights. If the routes are to stay, there has to be further code-shares with strong local carriers such as Westjet/Air Canada and Jetblue/Delta to provide feed for the flights. Additionally, if they stay then frequency of flights has to increase. 3 times a week is not good enough.
- Continue downsizing non-core departments including PIA maintenance and catering. Realistically, PIA only needs the capacity to maintain the ATR and A320 fleet. 777 and the 787 heavy maintenance to come should be outsourced as well as all engine maintenance.
- Remove and scrap the A310 fleet straight after hajj.
- Source additional A320/A321 and A330 aircraft. 777 should be displaced from domestic and ME routes and used solely for EU and NA routes.
- PALPA pilots' union is way too strong. Their influence should be restricted to flight safety and training.
- Push for the reduction and simplification of passenger taxes/fees levied by the Gov and the CAA. The Punjab gov is the worse culprit as they are the only provincial gov to levy fees at their airports.
- Lobby gov for the removal of customs duties on equipment imported.
- Unless the provincial governments are willing to cover all of PIA's losses operating to Gilgit, Skardu, Quetta, Peshawar etc, PIA should withdraw. These airports can not be served on a viable basis under PIA's cost structure. They are only feasible with public subsidy.
- long term look at purchasing A320/A321neo with the A321neo being used to potentially restart some EU destinations. Start thinking about replacing the 777 with additional A330s and 787s. 787s for long haul, a330s for ME routes.
And it would be nice if we can have your thoughts on why PIA is in the mess it is and what can be done to fix it.[/QUOTE]
You're welcome.
I think a lot of the mess has been remedied by the professional decisions taken by PK management in the last few years for which they have to be commended. The main points I will summarise below:
- Cancellation and withdrawal from loss making routes such as Amsterdam, Frankfurt, Glasgow, Houston, Chicago etc
- Not bowing to political pressure and breaking the unions* which had far too much power.
- Reducing staffing and thus improving staff productivity
- Retirement of the 747 and 737 fleet and induction of the A320
- Looking forward with the 777 order swapped with the 787
- Implementing codeshares with Turkish, Etihad and others
(*unions can be a positive and a force for good. In Pakistan and PIA however, they are venomous)
What needs to be done further:
- Continue with network re-structure. Only UK and Mid-East flying is profitable at the moment. Look at further withdrawal from Tokyo, Paris, Rome, Copenhagen and potentially New York.
- There needs to be a major rethink of North America (Toronto and JFK) flights. If the routes are to stay, there has to be further code-shares with strong local carriers such as Westjet/Air Canada and Jetblue/Delta to provide feed for the flights. Additionally, if they stay then frequency of flights has to increase. 3 times a week is not good enough.
- Continue downsizing non-core departments including PIA maintenance and catering. Realistically, PIA only needs the capacity to maintain the ATR and A320 fleet. 777 and the 787 heavy maintenance to come should be outsourced as well as all engine maintenance.
- Remove and scrap the A310 fleet straight after hajj.
- Source additional A320/A321 and A330 aircraft. 777 should be displaced from domestic and ME routes and used solely for EU and NA routes.
- PALPA pilots' union is way too strong. Their influence should be restricted to flight safety and training.
- Push for the reduction and simplification of passenger taxes/fees levied by the Gov and the CAA. The Punjab gov is the worse culprit as they are the only provincial gov to levy fees at their airports.
- Lobby gov for the removal of customs duties on equipment imported.
- Unless the provincial governments are willing to cover all of PIA's losses operating to Gilgit, Skardu, Quetta, Peshawar etc, PIA should withdraw. These airports can not be served on a viable basis under PIA's cost structure. They are only feasible with public subsidy.
- long term look at purchasing A320/A321neo with the A321neo being used to potentially restart some EU destinations. Start thinking about replacing the 777 with additional A330s and 787s. 787s for long haul, a330s for ME routes.
