PIA misses revenue target by 21%

Senate panel on PIA reviews national airline’s performance.

ISLAMABAD: The controversy-hit national flag carrier has missed its revenue target of Rs54.77 billion in the first seven months of 2016 by 21%, officials of the Pakistan International Airlines (PIA) told a Senate panel on Monday.

The national airline earned Rs43.19 billion from January to July which is 6.4% less than the Rs46.15 billion it earned in the corresponding period last year.



PIA officials briefed the Senate’s Special Committee on PIA Performance, chaired by Pakistan Muslim League-Nawaz’s Senator Mushahidullah Khan, on the airline’s performance and reforms being carried out.

“Efforts are under way to expand the national flag carrier’s fleet to take the total number of aircraft to 42 during the current financial year,” PIA Chairman Azam Saigol told the senators.

The PIA fleet consists of 38 aircraft, including 11 A320 airbuses, five A310 airbuses, 11 Boeing 777, six ATR-42 and five ATR-72. The permanent staff at PIA stands at 14,317 while the aircraft to staff ratio is 1:376.

He said the domestic market share of PIA increased from 42% to 65% from January to May. PIA flights are operating to 49 destinations, including 27 international and 22 domestic ones.

In 2015, PIA had a market share of 24% in the international arena and 47% in the domestic airspace while in 2016, the same has been projected at 27% and 68%, respectively.



The PIA chairman said the government had 91.7% shares in the airline, which was converted into a company on April 19 this year and was run under the Companies Ordinance, 1984.

Saigol said PIA’s premium service brand ‘PIA Premier’ was aimed at restoring the confidence of passengers in the national flag carrier. Initially, he said, PIA launched the service with improved features and facilities at par with leading airlines. Senator Farhatullah Babar said that just like every state institution was answerable to parliament, the PIA affairs should also be under parliamentary oversight for ensuring transparency and improved governance.

Published in The Express Tribune, September 6^th, 2016.