He was speaking at a ceremony held to mark the launch of direct flights from Multan to Jeddah, Saudi Arabia on Friday. The airline will operate two direct flights in a week from Multan – one from Multan-Jeddah every Friday and the other from Multan-Madina every Saturday.
Four new planes have already arrived while five others, which have been approved by the government, will reach this month. The remaining five will be delivered to PIA by June this year.
Elaborating, Gardezi, who is also the chairman of PIA, said four airplanes had been taken on lease and three more would be acquired on lease of six years.
He pointed out that the major reason behind the losses suffered by the air carrier was the use of airplanes on wrong routes. Before the current management took over, he said, big planes were used on small routes and small planes operated on big routes.
“At present, PIA is earning Rs8 billion a month and our target is Rs15 billion,” he claimed.
Despite losses and high fuel prices, he said, PIA had expanded its network all across the world. “We have started four flights a week to Toronto (Canada) and Kuala Lumpur (Malaysia). More international routes will be introduced.”
Talking about challenges, Gardezi said the biggest challenge the carrier faced was higher fuel prices. “We are paying 56% of our total revenues to cover fuel expenses and only 18% goes for payment of salaries to the employees.”
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Discussing the start of flights from Multan to Saudi Arabia, he said a longstanding demand had been met of the residents of Multan, Dera Ghazi Khan, Bahawalpur, Rahim Yar Khan and adjoining areas. With the completion of a new terminal at the Multan Airport, PIA will operate more international flights from there.
He stressed that the PIA management was making efforts to make the carrier a profitable entity by notching up revenues and reducing costs without compromising on service standards.
Published in The Express Tribune, January 4th, 2014.
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COMMENTS (10)
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There is no office on Bay street in Toronto. It is in Etobicoke on Aberfoyle. Get your facts right.
@optimist: Not everyone in PIA is corrupt. My dad actually does his job and we pay all of our taxes.
Hi Dear Reader My point of view that I like many airlines but I like most of all Pakistan international Airline . It has many facilities. PIA pace so good I like pal and PIA plan shape same like Palanquin .my last purpose is I came from Pakistan . I want cheap airline tickets
When your planes can't fly and you don't have enough money to repair or purchase new planes what does one do? You lease new planes at extraordinary rates - the planes also come with their own pilots who work for the lessor not PIA. You can pretty it up by making bold statements about upgrading the fleet but this would be considered a desperate measure by many.
@ Moiz Omer Your dad is very lucky. It is a good opportunity for him to make a deal. . Soon you guys will have enough money in Switzerland ;)
The problem with PIA is simple... they have way too many offices all over the world for an airliner that has at max 1 flight a week to international destinations. In Toronto alone they have an office on bay street... the most exclusive area of downtown. AIR CANADA the national flag carrier doesn't EVEN HAVE AN OFFICE THERE. PIA is such on the international front that these offices if they actually need this many can be run from the basement of the houses of the employees. And in reality an office isn't even necessary anymore it can all be done by internet and or phone.
Just think of the money they can save if they closed all the useless offices around the world. That would single-handedly pull PIA out of this mess.
My dad is the Director of Procurement and Logistics at PIA so he is the one responsible for purchasing these new aircraft.
Downsize the staff and stop giving free tickets to every single PIA employee without any checks!
4 flight per week to Kuala Lumpur? Who is he joking with? Number of flights to Kuala Lumpur have been reduced instead!! There used to be 2 flights from Karachi to Kuala Lumpur per week, now there is only 1 per week.