Secretary Aviation and Acting Chairman PIA, Muhammad Ali Gardezi, has ordered the immediate implementation of these measures which are expected to help save Rs1 billion a year, the committee said in a statement.
Dubbed the ‘Way Forward Committee’, it includes Captain Sohail Baloch, First Officer Syed Chakar Ali Shah, aeronautical engineer Syed Zakir Farooq, flight purser Noor Laghari and other members.
It was formed several weeks ago as employees presented a detailed report to government officials on possible ways to help PIA stop the financial haemorrhage, in an attempt to stave off privatisation.
The proposals include seeking direct flying routes for the airlines between cities within Pakistan. At present domestic carriers take long detours, burning extra fuel, as some routes are used by security forces.
Importance is being given to training pilots locally and avoid foreign tours.
The committee ordered a revised taxi uplift fuel on all aircraft which could save approximately Rs32 million a year.
To cut the amount of paper used, printed pay slips and casual leave applications will now be processed electronically, saving Rs3 million. To curb misuse of medical benefits, the pay slips will now carry details about the facilities used.
A huge inventory of spare parts of B-747, A-300, B-707 and other aircrafts, which are no longer in use, has been lying with PIA for years. It is worth an estimated $48 million. The committee has recommended that these should be sold immediately.
Perhaps the most important proposal was made regarding the way PIA buys spare parts for its planes. The committee wants management to buy parts from the open market, which consists of multiple vendors, instead of relying on just a few suppliers.
Another proposal includes changing the menu on all one-hour long flights in such a way that use of steel trolleys is eliminated on. The reduced weight helps save fuel cost.
“The committee is undertaking a stringent audit of oil consumption to reduce fuel expense. One of the members said that even with half the fleet in service, the airline’s fuel bill had not come down,” the statement said.
An audit of all agreements regarding hotel and transport at all domestic and international destinations will also be carried out.
Published in The Express Tribune, October 8th, 2013.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS (11)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
This article misses the point completely. PIA has a built-in passenger base which it has tried its hardest to alienate and largely succeeded in doing so. Until these people understand that their business is Customer Service and that the Customer pays the salary that buys their food, all this is in vain. And this is why the Government should stop bailing out PIA because they will never learn as long as they get reliable handouts.
Pia can be saved if people keep their opinions to themselves and let the people in pia do their work
Just more proof that it's time to get out of the airline business. Time for Pakistan to quit funding this loser - either sell the whole airline or close it down.
PKR 1 Billion savings a year is not going to save PIA. Why won't anyone address the most obvious expense the airline has: massive overstaffing? Get rid of the excess personnel, or lose the airline (in which case all personnel will be gotten rid of).
And they expect to save Rs 1 billion a year....
Remind me how many tens of billions the 2013 bail out was for ? Who is going to make up the difference ?
Privatization is a bitter pill to swallow for PIA employees but its important that this is done as all that bail out money could be spent on building schools and hospitals, instead of supporting a sick white elepant.
@Ozzie:
Are you sure that PIA flight crews stay in Dubai over-night after a 3 hour flight? You must be mis-informed.
I once flew Turkish Istanbul-Islamabad. That is five and a half hours, an hour and a half turnaround, and five and a half hours back to Istanbul (maybe more because of head-winds going west). Same crew.
As long as duty-time limits are not exceeded, the same crew will handle both sectors. The Gulf is closer than Istanbul!
Dont let Flight crew do a stop over in Dubai after a 3 hours flight from Pakistan.. Emirates crew comes and goes back the same day!
Not a single business focused management or efficiency expert in the way forward committee?!
Discard PIA
PIA should also discontinue full meals in their Domestic flights... another cost cutting measure for them...
Positive steps. It's all about fuel efficiency!