Pakistan International Airlines - financial reconsideration time.

• Author: Kazmi, S. Kamal Hayder

Byline: S. Kamal Hayder Kazmi

At present the Pakistan International Airlines Corporation (PIAC) is passing through a dire financial state. However, the present government of Pakistan is very keen to make the corporation self-reliant. Attempts are underway to enhance the financial health of the corporation through reducing its losses through various means and modes. Stringent action is being taken against corruption and mismanagement by the Government of Pakistan.

PIA Performance

Indicators###Units###Year 2017 Year 2018

PIA Fleet###No. of planes 36###32

Route###Kms###360,937###332,303

Available Seat###Million Kms###19,108###18,081

Passenger Load Factor###in percent###73.2###77.3

Revenue Flown###000 Kms###75,207###70,089

Revenue Hours Flown###Hours###122,081###110,050

Revenue Passengers Carried###000 nos.###5,342###5,203

Revenue Passengers###Million Kms###13,988###13,975

Revenue Tonne###Million Kms###1,469###1,472

Revenue Load Factor###in percent###55.2###58.4

Available Tonne###Million Kms###2,659###2,521

Analysis identified during FY2019 in the economic survey of Pakistan that despite financial constraints and tough and uneven competitive environment, PIAC gave a stable performance during 2018. Analysis also concluded that PIA is in process of acquiring new aircraft for its fleet. Currently, a tender has been floated for four narrow body aircrafts according to PPRA rules. PIA has submitted its business plan to the federal government and now it is under consideration for approval of federal cabinet. To reduce losses, PIA had to take initiatives like route rationalization and suspended its loss making routes. PIA is in the process of its strategic business plan 2019-23 to enhance its performance:

1. Launching of profitable new routes like Silakot-Sharjah, Lahore-Muscat, Islamabad-Doha and Lahore-Bangkok-Kuala Lumpur. These routes are going very strong and economically viable.

2. More new routes have been started which include; Sialkot-Paris-Barcelona, Peshawar-Sharjah, Peshawar-Al Ain and Multan-Sharjah.

3. Increasing frequencies and capacity on profitable routes like Jeddah and Madinah coupled with closure of loss making routes like New York, Salalah (Oman), Kuwait, Mumbai.

4. Stoppage of all officiating and extra allowances given on additional assignments to officials.

5. Ban on overtime allowances in all cadres along with monitoring of flights by senior officials.

6. Increasing regularity and punctuality of flights by assigning target to be...