- RSS
- Today's Paper
- Subscribe
- beta 2.1
Alerts
PIA approves fleet replacement plan
Senate told new aircraft will steer national carrier into profitability.
PIA has signed an agreement with Boeing to purchase five 777-300 Extended Range on February 14. PHOTO:FILE
ISLAMABAD: The State Minister for Defence Sardar Salim Haider on Tuesday informed the Senate that the Board of Directors of Pakistan International Airlines (PIA) have approved a fleet replacement plan.
As per the plan, new aircrafts will be added to the fleet to steer the national carrier into profitability. Replying to various questions, he said that the plan was envisaged for the replacement of an aging fleet of Boeing 747s, Boeing 737-300s and Airbus 310s and bridging the existing capacity deficit.
He conceded that the old aircrafts consumed more fuel as compared to fresh ones and major portion of the organisation’s budget was spent on fuel. Salaries of the employees were only 18% of the total budget of the airlines, he added.
Responding to another question, he said that the prime minister was the final authority to approve the business plan. He said that PIA has also signed an agreement with Boeing to purchase five 777-300 Extended Range on February 14 and these aircrafts will be delivered in 2015. The minister said that it was also decided to induct nine Boeing aircraft on dry lease – a lease arrangement whereby an aircraft financing company provides an aircraft without insurance, crew, supporting equipment etc – to improve PIA’s efficiency and to conduct Hajj operation 2012 in an efficient and orderly manner.
Haider said that all essential and mandatory equipments were installed in the PIA fleet for operation on the existing routes. However, the 747s were not equipped with sophisticated navigation system and were unable to comply with the arrival/departure procedures at Dubai and European destinations.
On another question, the minister said that Shaheen Air International and Airblue were currently operating their flights on domestic and international routes.
Published in The Express Tribune, September 5th, 2012.
Reader Comments (22)
Business Latest Stories
FBR recommends budget to be presented through presidential ordinance
Reason behind introducing the ordinance is to announce federal budget on time: FBR source
Development budget: AJK goes ahead with projects
For hydel generation two projects have been accorded approval with an allocation of Rs1.313 billion.
Change at the helm: State Life chairman takes charge
Iqbal has served as inspector general of Punjab police and his most recent assignment was in the ministry of interior.
Pakistan moves closer to standardising, quality control
World Metrology Day celebrated with accreditation of NPSL labs.
Hope for better ties Businessmen look forward to new Chinese PM visit
China should help exploit rich natural resources of Pakistan, says FPCCI President.
Stability in K-P, FATA will boost economy
Governor invites businessmen to invest in region as it achieves peace.
Market watch: Bulls in charge as new govt readies to take over
Index continues to climb unfettered by economic concerns.
Coke and Pepsi bank on showbiz to fight cola wars
Both sponsor music programmes to promote their brands in Pakistan.
Corporate reshuffling: Defying rules, govt appoints CEO of Pak Reinsurance Co
Caretakers’ move not in line with corporate governance rules for state companies.
Recent Slideshows
More in Business
Thai group plans foray into agriculture research
This material may not be published, broadcast, rewritten, redistributed or derived from.
Unless otherwise stated, all content is copyrighted © 2013 The Express Tribune News Network.
Technical feedback? [email protected]
“On another question, the minister said that Shaheen Air International and Airblue were currently operating their flights on domestic and international routes”
How enlightening…did anyone know of this before? Valuable information this is…
Recommend
“He conceded that the old aircrafts consumed more fuel as compared to fresh ones” even a layman knows that newer engines are installed when old ones become inefficient !!! so fuel insufficiency can be curbed :) the newer generation of aircraft such is new 747 & 787 have better engine tech & the body of the air crafts consist of fibre glass which makes them lighter & hence fuel efficient :)
Recommend
By just buying/leasing new planes PIA is not going to solve its problems. There are myraid issues involved in running an airline and PIA needs to concentrate on its core activity and spin off things like hotels, its engineering department, its flight kitchen etc into independant operating units. They also need to improve service levels on the ground and in the air and have a proper revenue management system in place to control and price their inventory. There scheduling department also needs to re look at the routes they fly too and timings to promote interline traffic. As for employee salaries only constituting 18 percent of the cost, thats good but sadly half the people employed dont have a clue as to what they are doing. One can go and on but PIA does not need to reinvent the wheel. They were one of the best in South Asia if not the world and surely can reclaim their position if dedicated, knowledgeable people are involved in the senior management!
Recommend
Re Minister’s claim that A310 & B747 can’t operate at Dubai & Europe as they were not equipped with “sophisticated navigation” system, Can he name the equipment or systems that is lacking on PIA aircraft?
Recommend
Privatise this tax guzzling loss making dept.!
Recommend
@Ali: What happens to the liabilities?
Recommend
http://edition.cnn.com/2012/09/03/world/africa/ethiopian-airlines-ceo/index.html?hpt=hp_bn8
Ethiopian Airlines – Bringing the Dreamliner to Africa
PIA could be the first one to bring it in South Asia but for that today we need a miracle.
Recommend
@Ali: Will never happen because it would be stupid to kill the hen that lays golden eggs, while the people of this God forsaken nation pay the price.
Recommend
Would have been fun reading a comparison of employees per seat for PIA with other airlines.
We surely beat everyone in these numbers as we are great people to fly with.
Recommend
@Suheil Siddiqi:
Agree with you. The statement is utter rubbish. The 747′s in PIA’s fleet do have an INS/IRS system which allowos for accurate navigation in lateral mode.
Recommend
@Suheil
At least the liabilities will stop piling high, we need to cut our losses with this one and just let it go. If you look at major euro companies they became much better after they were privatised and stopped being a burden on the state.
Recommend
@meekal a ahmed: Probable reason why some of the A310 & B747 fleets are not operated to Europe is that PIA hasn’t listed those aircraft with EASA as part of fleet that would meet compliance standards for ops in Europe. I think upto 12 PIA a/c are not registered (excluding B737 & ATR) listed with EASA as those were not intended to operate in Europe. This goes back to when Kirmani was PIA Chief, and they applied for reinstatement of EASA approval with a revised maintenance plan for compliance. Lack of nav equip is insensibility.Recommend
I work at the dubai airport and everyday an A310 shuttles between Islamabad and Dubai without any problems. Its an old aircraft but air worthy. The minister of state is apparently being fed misinformation from his ministry and PIA. Also 18% of the budget being used for salaries is not a valid performance indicator for airline efficiency. Globally it is number of employees per aircraft and PIA has the highest number of employees per aircraft in the world. We can thank BB’s first and second term in power for that as their ‘socialist’ manifesto meant hiring hordes and hordes of jiyalas who knew nothing about aviation business into the national carrier.
Recommend
Oh and i forgot…you can induct any aircraft old or new but PIA will remain beyond salvage until it revises its business model altogether. Which means cutting down on non-profitable routes, smart and strategic procurement agreements of oil and spare parts, improved customer services and firing about 20000 employees if not more.Recommend
Does anyone know what aircraft PIA plans to replace its fleet with?
777-300?
or possibly 737-8?
Recommend
First thing first, why on earth is PIA being managed under ministry of defense???
Recommend
@John:
Also see ASK & RPK for a better understanding of what is hidden in plain sight.
Recommend
@Ali:
Liabilities are phenomenal, who owns it and will own it after the asset is gone? Can one dump their odious loans/liabilities on their neighbors, relatives or friends? Who and why do they keep loaning them money and against what collateral?
Situation is rather engineered. Look at what’s going on in Greece and elsewhere.
Recommend
@Funnybone:
R.Q.Suleman….the latest jiyala
Recommend
this order is very old….they had ordered it 6 months ago
Recommend
It is a gross injustice, that 80% of Pakistan’s population which can’t even dream of setting foot in an airplane is subidizing this enterprise …. PRIVATIZE IT, ALLOW OTHERS TO SETUP ROUTES…… NOW!!!
Recommend
@Ather:
PIA has been bankrupt/insolvent since 1996. They have been getting by on bailouts and odious loans. Where does all the money come from to throw at PIA?
Recommend