PIA implements business plan to improve financial health

PIA implements business plan to improve financial health

ISLAMABAD: Pakistan International Airlines Corporation (PIAC) has implemented strategic business plan to improve its financial health, according to Economic Survey 2018/2019 launched a day earlier.

It said PIA came into existence in 1955 as Public Sector organization.

However, in April 2016 it was converted from a statuary organization to a company governed by Companies Act 1984, through Pakistan International Airlines Limited (PIAL conversion) Act 2016.

At present PIA is passing through a dire financial state. However, the present government is very keen to make itself-reliant.

Efforts are underway to improve the financial health of the corporation by reducing its losses through various means and modes. Stringent action is being taken against corruption and mismanagement.

Despite financial constraints and tough and uneven competitive environment, PIACL gave a stable performance during 2018.

To reduce losses, PIA had to take measures like route rationalization and suspended its loss making routes.

PIA is in the process of its Strategic Business Plan 2019-23 to improve its performance:

i. Launching of profitable new routes like Silakot-Sharjha, Lahore-Muscat, Islamabad-Doha and Lahore-Bangkok-Kualalalmpur. These routes are going very strong and economically viable

ii. More new routes have been started which include; Sialkot-Paris-Barcelona, Peshawar-Sharjha, Peshawar-Al Ain and Multan-Sharjha

iii. Increasing frequencies and capacity on profitable routes like Jeddah and Madinah coupled with closure of loss making routes like New York, Salalah (Oman), Kuwait, Mumbai

iv. Stoppage of all officiating and extra allowances given on additional assignments to officials

v. Ban on overtime allowances in all cadres along with monitoring of flights by senior officials

vi. Increasing regularity and punctuality of flights by assigning target to be achieved 90 percent

vii. Improvement in flight services, training of crew and regular monitoring

viii. Introduction of executive economy class on European and Gulf sectors which are attracting more customers

ix. Rationalization of fares according to market demand thus helping in increase of seat factor

x. Delays of flights have been cut down significantly by better planning in engineering, flight operation and ground handling departments

xi. Special emphasis on cargo business with monitoring of performance, rationalization of cargo fares and more effective liaison with all stakeholders

The survey said PIA is in process of acquiring new aircraft for its fleet. Presently, a tender has been floated for four narrow body aircrafts according to PPRA rules.

PIA has submitted its business plan to the federal government and now it is under consideration for approval of Federal Cabinet.