PIA in Profit?

[Hyde]

PIA launched new routes this year: Mukhtar ​

KARACHI (December 26, 2010) : Defence Minister Chaudhry Ahmed Mukhtar said on Saturday that PIA had launched new routes to some international destinations during the current year. He was speaking at the inauguration of Shaheed Mohtarma Benazir Bhutto Apna Ghar Scheme for lower grade employees of Pakistan International Airlines (PIA), earlier performed by President Asif Ali Zardari.

Sindh Chief Minister Syed Qaim Ali Shah, Information Minister Qamar Zaman Kaira, Labour Minister Syed Khursheed Shah, ministers and advisors were also present on the occasion. He said that PIA had also enhanced seating capacity at some important international routes to provide more facilities to people and passengers.

He said that for the first time in last four years, PIA has posted an operating profit during 2009 due to reduced expenses and improved efficiency. He said that 1900 apartments would be constructed over 10 acres of land in next two years to provide residential facilities to PIA employees specially female workers.

He urged President Zardari to accord approval to PIA's business plan for raising its fleet to meet rising demand from passengers. Labour Minister Khursheed Shah said that Pakistan has 60 million workers and PPP talks of their rights. "We are striving to provide them food, clothing and shelter as promised by Benazir Bhutto and Shaheed Zulfikar Ali Bhutto," he added.

Managing Director PIA, Captain Ejaz Haroon said that the airline had earned an operating profit of Rs 3 billion during 2009. During 2009, PIA's revenues surged to Rs 80 billion and were expected to reach Rs 100 billion mark during 2010, showing a growth of 25 percent, he added. He said that the seat factor was estimated at 76 percent during 2010, which is a remarkable achievement during the prevailing tough competition around the world.

Talking of the business plan for PIA, Ejaz said the board had accorded approval to the plan and now it was awaiting the nod of the Cabinet and the President. He urged President Zardari to allow PIA to adjust 3000 daily wages workers against the retiring employees.

 

[Hyde]

Sialkot-Dammam direct flight from January 6 ​

RECORDER REPORT
SIALKOT (December 26, 2010) : Pakistan International Airline (PIA) will start its direct Sialkot-Dammam (Saudi Arabia) flight from January 6th from Sialkot International Airport, disclosed General Manager Sialkot International Airport Muhammad Nawaz Chaudhry.

Talking to Business Recorder here on Saturday night he said that PIA was extending due support to Sialkot International Airport built by private sector for making it complete successful. A large number of overseas Pakistanis belonging to Sialkot, Daska, Pasrur, Sambrial, Narowal, Gujranwala and Gujrat districts would be benefited from Sialkot- Dammam direct flight the GM said. Nawaz Chaudhry further said that all necessary arrangements have been finalised by the airport authorities.

 

[somebozo]

All courtesy of excessive borrowing by this failed government which our financial minister is moaning day and night.

 

[Donatello]

Utter bullshyt.

i don't believe a word from this guy, who Asif Zardari himself put in place.

PIA making profit, under Zardari appointed person? Sounds kinda counter intuitive....

 

[alibaz]

Main problem of PIA is over staffing. Probably PIA has the highest employees vs aircraft ratio. Interestingly PIA employees less number of cabin staff that too old men and women. Probably this statement was meant for regularizing another lot of daily wages employees as permanent staff. Mr President has very kindly done so to ensure that PIA is thoroughly and properly F***ed up.

 

[alibaz]

duplicate post

 

[BATMAN]

PIA dishes out Rs 20 million to welcome Zardari

KARACHI: The Pakistan International Airlines (PIA) administration has released more than Rs 20 million to a trade union, Super Peoples Unity, for putting up banners and billboards to welcome President Asif Ali Zardari at the inauguration ceremony of Shaheed Benazir Bhutto Housing Scheme today (Saturday).
The union’s president, Aamir Shah, who is not a PIA employee, was issued a daily wager card along with other 15 people by the national carrier on Friday and it is likely that he would be made a permanent employee on the president’s orders, sources told Pakistan Today.
The official collective bargaining agent (CBA) of the PIA named the People’s Unity and headed by Kamran Chaudhry, was taken over by the Aamir Shah-led Super People’s Unity three months ago.
As the official CBA has completed its tenure of two years, it is also a trade union and therefore, all PIA trade unions currently do not have CBA status.

 

[BATMAN]

Zardari orders PIA bailout plan


ISLAMABAD: President Asif Ali Zardari on Friday asked the government to make a strategic investment in building the fuel storage capacity and an advance purchase of fuel oil to steer the Pakistan International Airlines (PIA) out of its financial woes.

He was addressing a briefing on the affairs of PIA, which he co-chaired with Prime Minister Yousuf Raza Gilani.

“The government could consider hiring the services of consultants to suggest workable plans for strategic investment in the PIA through public-private partnership,” the president said. Defence Minister Ahmed Mukhtar, Planning Commission Deputy Chairman Assef Ahmed Ali, and PIA Managing Director Captain Ijaz Haroon attended the meeting.

The president said fund-raising for the PIA required innovative and non-traditional solutions, as the problem was too big to be tackled by normal bureaucratic procedures and periodic dole-outs.

Zardari advised the government to also consider developing the Roosevelt hotel property owned by the PIA in New York, as a source of permanent income. He said the PIA should retain the property’s ownership instead of selling it.

Fresh look: The prime minister said the problems faced by the PIA could not be resolved through periodic inspections of the financial dole-outs, adding the government would take a fresh look at the issues involved to find a lasting solution.

The PIA managing director said the airlines had 40 airplanes in its fleet. Twenty-three were operating for domestic and 35 for international destinations, he said, adding that over 17,000 employees were working in the organisation. He said the average age of an aircraft was 13 years but more than half of the PIA fleet was over 23 years old.

Haroon said the airline industry worldwide had suffered huge setbacks because of the volatility in the fuel prices. “The projected profit of $9.6 billion in June 2007 turned into a loss of over $6 billion by June 2008,” he said.

He said the airline would focus to improve the equation between revenues and costs during 2009. “The overall seat factor was also planned to be higher this year than in 2008,” he said, adding a 14 percent increase in the capacity was planned which would also improve the growth in revenue considerably.

The PIA managing director said the facility of online booking had now been extended to more destinations and the list would be expanded. The reservation system had also been streamlined besides introducing courtesy and customer care training for the front-line staff, he said.

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[pak-marine]

PIA if ran a little efficiently can make a killing we dont need tourists , enough pakistanis live abroad in some estimate its more than 20million , if PIA can target just those there is huge potential revenue .... However it has always been a loss making airline , reason are corruption however i also think foreign airlines operating in Pakistan dont want PIA to do good , as its a big loss for them for eg over millions of pakistanis live in gulf and the same pakistanis use mostly Gulf based airlines to travel from european , american or far east destinations. I remember the case of Mecca cola "" he tried competing with coca cola and in few months time vanished off the shelf. There were rumors that coke /pepsi bought em all infact gave more incentive to retailers to remove them off the shelf. Point is lets not rub every thing on politicians there are other actors deep inside our system.

 

[BATMAN]

Actually friend of Zardari is hired as MD of PIA to target very same Pakistanis but in opposite way.
He is running a mafia of thieves in PIA who break bags of Passengers returning from Europe and in some cases take away complete baggage item if they like it.

Not a single passenger is spared... this practiced is already being going on since last 6 months. very organised gang.

Employees, openly demand share for Zardari and PPP.

 

[ajpirzada]

these profits are not new. they are quite an old story. i remember discussing them last year.

anyways operating profits do not mean net profits and it is net profits which actually matter. someone with accountancy background can explain better than me.

secondly, PIA has 40 planes and its total staff is 18000+. this means 450 plus staff for each plane. is this reasonable according to any standards?

 

[v9s]

these profits are not new. they are quite an old story. i remember discussing them last year.

anyways operating profits do not mean net profits and it is net profits which actually matter. someone with accountancy background can explain better than me.

secondly, PIA has 40 planes and its total staff is 18000+. this means 450 plus staff for each plane. is this reasonable according to any standards?

Operating profit is basically earnings before interest and taxes are charged:

Sales revenue - Cost of goods sold = GROSS PROFIT
Gross Profit - marketing & admin. costs = OPERATING PROFIT

Employee to fleet ratio is too high. Comparing it to the worlds biggest airline, Delta, they have around 74,000 employees with 725 planes, with an additional 40+ coming in.

Anyway, according to my friend's dad, a PIA pilot, he says that PIA makes a lot of profit, but it shows a loss in the books due to corruption in the administration.

 

[eaglesword2000]

PIA if ran a little efficiently can make a killing we dont need tourists , enough pakistanis live abroad in some estimate its more than 20million , if PIA can target just those there is huge potential revenue .... However it has always been a loss making airline , reason are corruption however i also think foreign airlines operating in Pakistan dont want PIA to do good , as its a big loss for them for eg over millions of pakistanis live in gulf and the same pakistanis use mostly Gulf based airlines to travel from european , american or far east destinations. I remember the case of Mecca cola "" he tried competing with coca cola and in few months time vanished off the shelf. There were rumors that coke /pepsi bought em all infact gave more incentive to retailers to remove them off the shelf. Point is lets not rub every thing on politicians there are other actors deep inside our system.

one can't be big by showing other smaller, to be big you have to grow up.
it's easy blaming other instead of working properly

 

[Pak_Sher]

Operating profit is basically earnings before interest and taxes are charged:

Sales revenue - Cost of goods sold = GROSS PROFIT
Gross Profit - marketing & admin. costs = OPERATING PROFIT

Employee to fleet ratio is too high. Comparing it to the worlds biggest airline, Delta, they have around 74,000 employees with 725 planes, with an additional 40+ coming in.

Anyway, according to my friend's dad, a PIA pilot, he says that PIA makes a lot of profit, but it shows a loss in the books due to corruption in the administration.

Agree with your opinion. The employee to fleet ratio needs to be managed properly and politics in the PIA Union also needs to be controlled. Also PIA staff needs to cleansed of corruptioon and NAB needs to initiate action against them.

 

[DESERT FIGHTER]

PIAs office in multan has a really giant a$$ portrait of benazir bhutto and PPP...... they dont give a crap abt profit!

PP hai na!