Due to positive management, reduction in fuel prices and better economic conditions, PIA’s loss before tax reduced by 34.4 per cent in 2014 as compared to the previous year.
In addition, the airline’s seat factor has increased to 72 per cent and the better yields resulted in an almost 8 per cent increase in passenger revenue. In addition, strict control and better economic environment helped keep costs down and expenses decreased by almost 10.6 per cent. The airline, however, reported a loss before tax of Rs 29.3 billion in 2014 in comparison to a loss of Rs 44.7 billion in 2013.
PIA Chairman Nasser Jaffer stated this at the 58th annual general meeting of PIA which was held on Friday in Karachi. The meeting was also attended by PIA shareholders, members of the PIA board of directors and senior management. He informed the AGM about the various milestones that the airline had crossed during past year. He said the PIA was now on its way to revival and had achieved many significant goals. The revival measures included fleet modernization, route rationalization and cost-cutting.
The chairman said that nine PIA aircraft had been retired during the period which decreased the average age of the fleet to 14 years. He said the airline was now following a strict financial regimen and maintaining stringent control over spending. Schedule integrity and departure punctuality are key drivers of customer satisfaction and were being improved, he added.
The chairman said the airline was currently in the process of acquiring more fuel efficient aircraft. In 2015, the PIA planned to add 10 narrow-bodied A-320 aircraft to its fleet as well as 5 ATR -72 planes. Of these, three A-320s and two ATR-72s had already been delivered while the remaining aircraft would be inducted during this year.
As a result, the PIA chairman said the airline had succeeded in maintaining and increasing its market share in both the domestic and international segments.
Mr Chairman of PIA has all along been learning from within his own group. He never had the opportunity to learn management in any major national or multinational company. He had no practical experience of managing a huge organization like PIA. Nor did he ever visit any major airline office anywhere in the world to know how an airline is managed. He never played a key role in the aviation industry of Pakistan. Yet, he is the chairman and the chief executive of an airline called Pakistan International Airlines, thanks to his connections or contacts or conciliatory behaviour?
Mr Chairman does not have a single key management decision to quote in favour of what he states in his statement. What positive management initiatives have been taken during his tenure or that of his predecessor? Leasing aircrafts without due diligence and fair competition among the vendors? Is that a positive management initiative? Whatever operating profit PIA earned came from the international drop in fuel prices. Should the chairman be given the credit for it? He was instrumental in holding the fashion show for PIA's crew uniforms at a phenomenal cost to a beleaguered organization. He never bothered to improve the meals quality and service. Its the worst among the airlines operating in Pakistan. He appointed a PR agency at a phenomenal cost to PIA without due diligence and fair competition at a time when PIA has nothing in its performance to communicate to the travelling public. We at Good Governance Forum would be delighted to have a public debate with the chairman at any public platform including a media conference or TV talk show. Will he have the courage and confidence to come forward without any of his aides and defend what he states in his statement with solid evidence?
PIA fly weekly from Oslo, Norway to Islamabad, Lahore and Karachi separately, you can confirm these flight from all airports of Pakistan and even Oslo airport but if you will visit PIA website and try to book tickets for this flight you will not able to find Oslo in the departure list of PIA, clearly showing that you cannot book flights from Oslo to Pakistan and these 3 flights are utilizing zero percent internet facility from the country where 90% people use internet to make airline bookings. I don’t know whether PIA want to turn this route full of losses or its another mistake.
PIA´s website is a nightmare to operate. Oslo not showing as an option in the departure list is plain stupidity. I believe it is just to give an edge to the ticketing staff in Oslo to charge higher price compared to what would have shown on the website. The same flight Oslo to Islamabad, actually starts from Copenhagen in Denmark, stops in Oslo and goes to Islamabad. The price I got today for my wife and kids for Oslo to Isb and back is 24000 NOK, whereas the cost is roughly 18000 NOK if I take the same flight from Copenhagen. (which is the only option showing up in the departure airports list). What is this stupidity? PIA is plagued by decades of misuse by politicians. It is a disgrace on the name of national airline.
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