Tuesday February 27, 2024

PIA expects Rs5 bn additional revenue

July 12, 2019

ISLAMABAD: Pakistan International Airlines (PIA) after the addition of its two grounded aircraft in its fleet would increase annual revenue of this national flag carrier by Rs5 billion and would not need to further acquire aircraft on lease.

The airliner has also started flight operations on seven new destinations while has suspended flights on six loss-making routes including Lahore-Delhi, Karachi-Dhaka and Karachi to Kabul. This would increase revenue while reduce its expenses, a senior official of the Airliner informed the Senate Standing Committee on Aviation that met here with Senator Mushahid Ullah Khan in the chair.

Financial health of PIA had much improved after the opening of new profitable routes. Grounded aircrafts had been made functional and after this the airline expecting additional Rs5 billion increase in annual revenues.

Official said, we have also sold dead engines that fetched $5 million to this national Airliner. We are also going to offer 36 properties of PIA on rent, which include seven properties abroad. Besides, 200 ghost employees had been terminated by the management.

PIA is also working hard on minimizing its operational costs, which earlier was considerably high and has started reducing.

PIA has also increased the number of flights on profitable routes due to which the Airlines revenue has increased considerably. With the induction of these aircraft, PIA will not go for acquisition of aircraft of lease.

Local and foreign trips of the officers, flight crew and other employees, and their unnecessary allowances have been stopped. Duty times have been increased and surplus workers have been transferred to other suitable places to effective for bringing betterment. Cargo service has been further improved while booking for employees in five-star hotels has been reduced.

PIA has added aircraft A320 to its fleet after it remained grounded for more than one year. It was the second aircraft that resumed operation after a month. As in June, Boeing 777 was also made operational. Now there is no grounded aircraft left behind except for mandatory routine maintenance checks. These aircraft have been added to the PIA’s fleet after carrying out its test flight successfully. The revived aircraft — Boeing 777 and A320 — will be utilised for PIA’s Hajj operation.

The committee also discussed point of public importance raised by Senator Behramand Khan Tangi regarding corruption in the project of New Islamabad International Airport, improvement of PIA management during current year and briefing on PIA employees' pension policy. Minister for Aviation Ghulam Sarwar Khan and Chief Executive Officer (CEO), Pakistan International Airlines (PIA), Air Marshal Arshad Malik also attended the meeting.

Ghulam Sarwar Khan said that Islamabad New International Airport’s PC-I was made in 2006 with Rs38 billion cost and completion year of 2010, but it was made functional in 2018 with a cost of Rs105 billion and still it is incomplete. This case has been sent to FIA and NAB and was also discussed in public accounts committee several times. The people of civil aviation authority and its cost could go to Rs125 billion. We would hold an internal inquiry on this issue and submit the interim report in four-week time and final report in eight weeks to the committee.