Economic Survey 2020/21: PIA witnesses revenue shortfall of Rs82.6 billion due to COVID

Economic Survey 2020/21: PIA witnesses revenue shortfall of Rs82.6 billion due to COVID

ISLAMABAD: Due to COVID-19, the scheduled flight operations to most of the parts of the country and the globe remained suspended. Pakistan International Airline Company (PIAC) revenues, approximately Rs82.6 billion, stood short of the target.

It, however, operated special flights to facilitate stranded Pakistanis abroad, said Economic Survey of Pakistan released on Thursday.

PIAC has taken following measures to revamp its operations during the current FY 2021:

— Due to COVID-19, the scheduled flight operations to most of the parts of the country and the globe remained suspended. PIAC revenues, approximately PKR 82.6 billion, stood short of the target. It, however, operated special flights to facilitate stranded Pakistanis abroad.

— Enhancement of ancillary revenues through bulkhead seats, pre-allocation of seats, advance excess baggage etc.

— Network optimization e.g. code share alliances to expand network

­– Focus on enhancement of cargo and charter operations

— Focus on capacity rationalization for better utilization

— Improvement in customer services via punctuality and regularity of flights, aircraft cleanliness and food quality

— Better governance and focus on discipline:

— Action against employees with disciplinary issues

— Plugging in loop holes by better internal controls

— Improvement in air-crew flight rosters

— Enhancing brand perception

— Reconciling and rescheduling loans

— Strict discipline and accountability regime including a Time Management System

— Centralized medical center for all PIAC employees leading to cost savings

— Increasing Maximum Take Off weight limitation on A-320 aircraft, thereby increasing payload carrying capacity

— Restructuring through Voluntary Separation Scheme (VSS)

— Reducing salaries for 6 months with a resultant saving of Rs 770 million.

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