PIA Implements Sabre Aerodynamic Solutions to Improve Customer Service, Reduce Costs

Good idea :slight_smile:

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New Capabilities to Be Delivered via Sabre’s eMergo Web-Enabled ASP Solution, Eliminating Need for Costly and Complex Infrastructure and Support

Sabre Holdings Corporation (NYSE: TSG) today announced that Pakistan International Airlines (PIA) has signed an agreement to implement Sabre Aerodynamic Traveler passenger processing solutions to heighten customer service and reduce operational and resource costs at a number of its locations. Under this agreement, PIA builds upon the existing portfolio of Sabre technology solutions already in use at the airline to streamline operations and enhance revenues.

Sabre will deliver the new solutions via its eMergo Web-enabled and dedicated network solutions offering, providing PIA access to the modules through its applications service provider (ASP) model over an Internet or direct connection. This ASP model eliminates the airline’s need for costly and complicated in-house data center infrastructure and support and marks the first expansion of Sabre’s ASP delivery model into the airport environment.

Sabre’s Aerodynamic Traveler portfolio is a suite of passenger processing solutions designed to increase agent mobility, improve airport efficiency and maximize airline customer satisfaction by providing the highest level of service to passengers at the lowest possible cost. PIA will be implementing the Sabre Aerodynamic Traveler Gate Reader and Aerodynamic Traveler Roving Agent modules under the agreement.

The Gate Reader module reads documents and/or cards to verify passenger information, including flight information, date, flight origin, passenger name and seat number. The Roving Agent module supplements gate and check-in counter agents’ stationary workstations by providing wireless access to the Sabre Passenger Reservation System currently in use at PIA. The Roving Agent system’s handheld units eliminate the need for a physical connection to a network cable, enabling agents to provide mobile relief to long lines of passengers and to proactively meet inconvenienced passengers during off- schedule operations.

“PIA has gained tremendous benefits from Sabre technologies,” said Khursheed Anwar, chief operating officer at PIA. **“With the addition of the Gate Reader and Roving Agent modules, we will be able to speed up the overall passenger boarding process and provide greater efficiency for our agents in terms of time required for flight close-out functions and the ability to perform other duties. This type of automation is critical for PIA in our key international cities. Accessing these capabilities over the Web helps us better perform in today’s highly competitive airline industry.” **

Specific benefits of this agreement include improved seat utilization with better inventory control and top quality check-in services for other airlines that use PIA for check-in services in Pakistan. In addition, travelers benefit from advance seat and meal selection and incorporation of frequent flyer programs.

Connecting to Sabre’s Airport Check-In System International (ACSI), already in use by PIA, the Gate Reader module will automate the flight boarding and closeout process at PIA’s London Heathrow, Manchester, JFK and Toronto locations. After verifying passenger information at the time of boarding, the system performs real-time reconciliation of flight lists and passenger data.

“Sabre is committed to delivering new technologies to airlines to support improvements in passenger satisfaction and help optimize staff utilizations at their airports,” said Steve Clampett, president of Airline Products and Services for Sabre. **“Technology that eases and streamlines passenger processing is becoming more and more important in today’s environment. Our goal is to provide the technology airlines need to make traveling as smooth as possible for the airlines’ customers and thereby encourage customer loyalty.” **

Any IT people out there puleeassseeeeeeeeee tell me have you ever heard of outsourcing to a richer country?
Pakistan a country who's labour costs for IT related stuff is 1/10th of the US, gets IT solutions from the USA?

The Sabre deal was crooked, is crooked and will always be a sad joke with the tax payers money, no matter how good a public relations job is done.

No offense meant BK, I know you were probably real happy at finding a good article about Pakistan for once, God knows we need them. but this article is what you call a spin doctor job.

[QUOTE]
*Originally posted by Zakk: *
No offense meant BK, I know you were probably real happy at finding a good article about Pakistan for once, God knows we need them. but this article is what you call a spin doctor job.
[/QUOTE]

Zakk, for most of the part, I agree with you. But keep in mind, the quality of PIA sucks big time. What Government is trying to do is to improve the quality, service and condition of PIA so that people take more advantage of it. Pakistani offficials have already bought materials for the improvement.

I know this deal would be a big task for Pakistan, especially for its people.

[QUOTE]
*Originally posted by Zakk: *
Any IT people out there puleeassseeeeeeeeee tell me have you ever heard of outsourcing to a richer country?
Pakistan a country who's labour costs for IT related stuff is 1/10th of the US, gets IT solutions from the USA?

The Sabre deal was crooked, is crooked and will always be a sad joke with the tax payers money, no matter how good a public relations job is done.

No offense meant BK, I know you were probably real happy at finding a good article about Pakistan for once, God knows we need them. but this article is what you call a spin doctor job.
[/QUOTE]

I agree that outsourcing should not be given to US from pak atleast, but in this age of IT PIA sometime its feasible to adopt out of the box solutions and not re invent the wheel. thats what this deal about, I dont know may be there is undertable deal as well.
but sabre is well known air travel solution provider and it will help PIA to integrate its bookings with other airlines as well.
its finally got rid of age old Apollo system.

Ah yes the good old Sabre brings back memories of good old days…

In the 90s I use to work for American Airlines in the MIS department. AA uses Sabre as their reservation system, which is in Tulsa Oklahoma, the HQ is in Fortworth Texas. All travel agencies and reservation offices are linked to Sabre via worldwide network. Sabre does a lot more than just reservation it also covers Sky chef, maintenance, Travelocity, and all kind of database etc…. Latter Sabre became a separate company (NYSE:TSG) and started going after other airlines. As we speak Sabre offer services to two dozen airlines around the world. For each reservation done on the Sabre system Sabre charges $1. This cost is in addition to yearly charges incurred for using the Sabre system eg. tech support, logistics etc.

Since Sabre became a separate company unlike before where it was part of American Airlines and only provided services to AA now it can provide services to other travel related industries. At one time Sabre was negotiating with Russia to provide services to Mir space station.

Than came the Y2K bug we had already made Sabre Y2K compliant and it passed with flying colors we did a dress rehearsal and simulation just to be sure.

PIA had their own reservation system which according to them was not Y2K compliant! Like Sabre they also provided reservation services to one of the Middle Eastern airlines. So PIA finds a perfect excuse to by services from Sabre.
One of my friends at Sabre was asked to go to Karachi for a site survey but he changed his mind the last moment. Someone scared him off by telling him how Americans are a target in Pakistan. Few months before four Americans working for an oil refinery were killed in Karachi. I was asked to go but I could not since I had travel restrictions on my work Authorization I was in the process of having it convert to H1.

Playing smart Sabre finds a black dud for the job! he was happy to go to Karachi, when he came back he had good things to say about Pak.

I was part of the team responsible for the cutover from PIAs old system to Sabre.
We were responsible for all the hardware/software, design, tech support and logistics etc… minus the cost, that was another department.

The idea was to cutover all PIA reservation offices world wide in one go using the existing hardware as much as possible but still have access to the old system just in case. To do that we came with an idea of an electronic A-B switch, A=old system B=Sabre.

The switch (Tiger Box) was made by a third party based here in US not costing more then few hundred dollars. At the time there was no high speed link available from Karachi to Tulsa. But the nearest node was in Singapore so we managed to link Karachi Tulsa via Singapore. After getting every thing in place I did some calculations as to how much will it cost taking into account the hardware/software/tech support/logistics blah blah blah etc… According to my calculations the total cost of switching PIA to Sabre could not have been more than $20M under any circumstances. PIA signed a deal with Sabre for $150M….. I told my manager that there is something fishy about this whole deal it simply don’t add up. I was asked to keep my mouth shut or I may lose my job by spreading rumors. Latter Ganja was kicked out of the office (thanks God) and the deal was scraped. Sabre threatened PIA with a law suite of $30M odd for the damages. PIA informed Sabre that kickbacks are a felony in US and they can counter sue for damages.
After some investigation Musharrafs regime uncovered a massive kickback plot, Sabre gradually backed off and tried to avoid any law suites.

I left Sabre shortly after that my friends who still work for Sabre told me that the same deal was renegotiated with Sabre for 1/4th the price and PIA is now using the new Sabre system.

Latter I read lot of stories in the news papers which were not correct several different reasons were given but the kickbacks. My manager told me that this whole deal was sanctioned by the office of PM of Pakistan. The old PIA reservation system was always Y2K compliant it functioned perfectly without any issues.

FYI going to Sabre was a good move provided the deal was honest. More than two dozen airlines from around the world use sabre system. When I was working for Sabre USAir, Cathy Pacific, Air Canada, Canada Air, Argentine Airline and few others from third world countries switched over to Sabre. Bottom line it was cheaper and more efficient.

Story of Sabre and PIA:- http://www.dawn.com/2000/07/16/top0.htm

:hula:

Here’s the one article I found about PIA. I hope you guys have already checked it out.

PIA Board Endorses Rs15.4bn TFCs, Fleet Plan

KARACHI: The Board of Directors, Pakistan International Airlines (PIA) which met in Islamabad on Monday gave approval to fleet plan and floating Rs15.4 billion Term Finance Certificates (TFCs) to pay back liabilities and raise funds for fleet modernisation but failed to decide on make of the aircraft to be inducted in fleet.

The Board decided to raise $150 million for a period of three years for the fleet modernization. Two aircraft manufacturers - Boeing, US and Airbus, European - have offered to sell their aircraft. But the Board decided again not to make any recommendation for one of the two to the federal government, which is main financier fleet plan. So the ball is now in Finance Ministry’s court, the sources disclosed to The News.

However, the Board approved a 10-year fleet plan to replace and induct new aircraft in the fleet with an outlay of $2 billion. Three aircraft will be inducted in 2003, two in 2006, three in the year of 2008 and three in 2011, according to the plan. The business plan covers gradual replacement of the aging B-747-200, A300B4, 747 Combi, B737-300 and Fokker F-27 aircraft to match the performance of other regional airlines through new external financing being made available to PIA.

Approval of fleet plan was necessary for floating Term Finance Certificates (TFCs), the sources observed adding it was the only hitch in issuing TFCs. The TFCs are expected to be issued in the end of November, they added. The TFCs will help repay liabilities and bridge loans, Imran Gardezi, spokesman for PIA said.

The Board was informed that the government was committed to financial support of the national flag carrier. The meeting discussed different ways of making PIA financially viable. In this regard, the federal government had already directed Civil Aviation Authority (CAA) to renegotiate the agreements with the airlines of nine countries. The Board also discussed at length freedom of air traffic rights during the meeting, the sources added.

A full dress representation will be made before the Finance Minister Shaukat Aziz on August 10, at PIA head office Karachi. PIA team will once again prepare a presentation on the guidelines provided by the Board, the sources, which attended the meeting revealed to The News. The market strategy of PIA includes introduction of new destinations to Glasgow, Nairobi, Istanbul, Tehran, Mashhad, Tashkent, Almatey and non-stop flights to Chicago, Houston and Los Angeles, the sources added.

PIA paid for the infrastructure and the technology. SABRE is a very sophisticated system and millions have been spent on it.

PIA team will once again prepare a presentation on the guidelines provided by the Board, the sources, which attended the meeting revealed to The News. The market strategy of PIA includes introduction of new destinations to Glasgow, Nairobi, Istanbul, Tehran, Mashhad, Tashkent, Almatey and non-stop flights to Chicago, Houston and Los Angeles

Cool!

Cool... I am looking forward to the best possible service from PIA.

Is it too early to expect that PIA can offer its best fares on its website and that it will launch a frequent flyer program that actually works? :)

The former Chairman of PIA, Shahid Khaqan Abbassi was also responsible for the order to stop Mush from landing in Karachi.
He made the Sabrea deal, while another PIA appointed MD wanted to sue Sabre and claim Millions according to American law its illgeal for a american company to bribe their way for a contract. Anyways that MD got sacked..and they then settled out of court.

It was all covered in depth by the Herald I think..

PIA Expects Rs 800m Pre-Tax Profit

KARACHI, September 20 (PNS): **Pakistan International Airline (PIA) is expecting a pre-tax profit of Rs 800 million for the third quarter July-September 2002, a press release said on Thursday. **

Together with the profit of Rs 553 million earned in the first half of this year, the aggregate profit achieved so far (Jan to Sep) comes to Rs 1.35 billion, which is a record for PIA,:biggthumb: press release added.

Attributing the impressive results to the restructuring measures implemented by the management, PIA said **overall seat factor during current quarter has improved to 73%, which was 71.6% last year. **

As a first step in implementation of the plan, **PIA has purchased six used B747-300 aircraft from Cathay Pacific, out of which five were already on lease with PIA. **The management has decided that the purchase of aircraft was more economical than continuation of lease.

Giving the details to improve customer services, PIA said since October last year, PIA have negotiated certain terms with Sabre company which has brought substantial savings of over one million dollars to the airline and has contributed towards improved customer services by reducing manual discretion.

PIA Going For Fleet Modernisation

ISLAMABAD: Pakistan’s national carrier is to buy or lease eight new Boeing 777s over the next eight years as part of a major fleet modernisation, a spokesman said on Friday.

State-owned Pakistan International Airlines (PIA) will acquire three 777s next year, two more in 2006 and three in 2010, said spokesman Imran Gardezi.

He said the planes would either be bought from the manufacturer, or new 777s would be leased from US carrier United Airlines.

Mr Gardezi said PIA has been offered a price of $105 million each plus a total support package worth $20-25 million if it decides to buy rather than lease.

Four ageing Airbus A300B4 aircraft would also be replaced on domestic and regional routes. Mr Gardezi said PIA would acquire four more A310s of 1990s vintage on a dry lease (excluding crew) from other airlines.

He said PIA is contemplating opening routes to Houston, Chicago and Los Angeles in addition to its current flights to New York. “The new (777) aircraft would be useful long-haul on European routes and to the US.”

Mr Gardezi said PIA has already bought five Boeing 747-300s from Hong Kong’s Cathay Pacific, which had been on lease to the Pakistani airline. A sixth would be purchased around the end of the year.

PIA chairman Lieutenant General Hamid Nawaz, quoted by Dawn newspaper, said modernisation was essential since the average age of the current fleet was about 23 years and no acquisitions had been made since 1991.

“PIA was losing its market share due to relatively poor performance and to face up to competition it needs to induct new aircraft,” he was quoted as saying.

Asked about possible privatisation, Mr Nawaz said this was a government decision, which could be taken only when the airline is profitable.

But he pointed out the national carrier currently provides flights in the public interest which a private operator could not afford, such as Hajj (pilgrimage) flights at cost and services to remote rural areas.

PIA earned a profit of approximately $6.5 million during the second half of 2001 and around $1.6 million from January to August 2002, a meeting last month was told.

PIA To Acquire 8 Boeing 777s

ISLAMABAD: Pakistan’s national carrier is to buy or lease eight new Boeing 777s over the next eight years as part of a major fleet modernisation, a spokesman said on Friday. State-owned PIA)will acquire three 777s next year, two more in 2006 and three in 2010, said spokesman Imran Gardezi.

He said the planes would either be bought from the manufacturer, or new 777s would be leased from US carrier United Airlines. Gardezi said PIA has been offered a price of $105 million each plus a total support package worth 20-25 million dollars if it decides to buy rather than lease.

Gardezi said PIA would acquire four more A310s of 1990s vintage on a dry lease (excluding crew) from other airlines. He said PIA is contemplating opening routes to Houston, Chicago and Los Angeles in addition to its current flights to New York. Gardezi said PIA has already bought five Boeing 747-300s from Hong Kong’s Cathay Pacific which had been on lease to the Pakistani airline.

PIA needs more
http://www.nation.com.pk/daily/today/editor/ed3.htm
THE PIA decision to lease or purchase eight new Boeing 777s over the next eight years, as part of a major fleet modernisation, is meant to remedy one of the chronic problems facing the national carrier in recent years, a shortage of planes due to failure to replace an aging fleet, with the consequent results of the need to cut flights and give up routes. The PIA plan involves the acquisition of three 777s next year, two in 2006 and then three in 2010. Whether bought from Boeing or leased from United Arilines, these 777s will prove an enhancement of the PIA fleet, which has yet to induct these aircraft. The programme of modernisation has already started with the purchase of the five 747-300s already leased from Cathay Pacific, while a sixth will be bought this year, and four aging Airbus A300s will be replaced by four A310s on dry lease.
Indeed, at present profitability levels, the financing of the purchases will be an issue. The 777s alone would cost $105 million each, and if one throws in the support package, it would be a billion-dollar deal. Meanwhile, PIA has made profits of $8.1 million in the last 14 months, with a drop in profits since January. This might be ascribed, as almost every second economic woe is, to the 9/11 effect, but it should be noted that this brake on the aviation industry has still not been removed, especially in the case of Pakistan, about which so many countries have issued travel advisories. Plummetting tourism figures also do not make for a rosy picture. However, we must assume that PIA knows something we don’t about the future of the aviation market, or presume that the expansion is backed by a business plan involving aggressively competing for a larger share of a shrinking market.
But an airline does not live by aircraft alone. The fleet upgradation is all very well, but there are other problems that no amount of new planes will address. What about the skewed route structure, which in some cases is based on neither commercial nor public-interest considerations? What about the poor service, the overstaffing, the inefficiency, the problematic personnel policies which have seen most staff take pay cuts, while hiking directors’ perks? More than planes, PIA needs the right policies and the right people, which it presently lacks

Pakistan To Get $125m From US For Boeing Deal

WASHINGTON, Oct 1: The US Export-Import Bank agreed on Tuesday to provide $125 million to Pakistan to help it buy passenger aircraft from the Boeing Co. This is the first time that the bank is underwriting a deal between Pakistan and a private US firm.

Last month, the Pakistan government had agreed to contribute $150 million over three years to help the PIA finance the purchase of 10 new planes.

Finance Minister Shaukat Aziz said the money would help the airlines embark on an ambitious $2 billion fleet-overhaul programme that includes the scheduled purchase of 10 planes by 2011.

In August, PIA Managing Director Hamid Nawaz Khan had announced plans to improve the airline’s aging fleet with new aircraft.

PIA has agreed to take delivery of three Boeing 777s and seven turboprop aircraft by 2003.

Mr Aziz said the government’s decision to contribute 15 per cent of the total money needed to complete the purchase was largely due to the airline’s improved financial performance.

The average age of PIA planes is 23 years. It has 40 planes and 22,000 employees.

Pakistan and the Ex-Im Bank on Monday signed a letter of awareness, facilitating the bank’s opening of its Letter of Credit Programme in Pakistan. Ex-Im Bank’s letter of credit insurance policies are available to cover letters of credit issued by National Bank of Pakistan, United Bank, and Muslim Commercial Bank.

“We are delighted to strengthen our relationship with Pakistan,” Ex-Im Bank Vice-Chairman Eduardo Aguirre said. **“This signing marks the culmination of a long process of cooperation. We’re hopeful this will help facilitate US exports to Pakistan and illustrate our confidence in the strength of Pakistan’s major banks to the international financial community.” **

Another useful step by PIA :slight_smile: I hope it would work out !

PIA To Strictly Deal With Employees’ Campaign

KARACHI: The management of Pakistan International Airlines has decided to deal with iron hands employees’ campaign for the restoration of allowances and working agreements, sources said on Wednesday.

Well-placed sources in the PIA hinted that the management was contemplating a series of disciplinary actions against all the employees who were trying to re-gather for the restoration of union activity rights.

A seminar held recently by PIA Cabin Solidarity Front on “The Cabin Crew’s role in Flight Safety” turned into a protest meeting when speakers including Justice (Retd) Nasir Aslam Zahid and Justice (Retd) Rashid Rizvi ciriticised the management for denying union activity rights to airline employees. The criticism was also echoed by almost all the seminar’s speakers. They bitterly slammed the PIA management over withdrawal of working agreements.

They challenged the management’s claims that the airline had earned profits saying the management had in fact saved Rs700 million by cutting the crew’s allowance. The management has no role in the airline’s turnaround, they added.

The PIA management, which enjoys support of the Ministry of Defence is not happy with the employees’ recent move and has decided to stop it in its tracks, sources in the management disclosed.

“A group of employees is involved in unleashing malicious campaign against the management”, they said. “The management may initiate disciplinary proceedings against all the employees whose conduct is liable to necessary action”, they said while outlining the management’s line of action.

“Recently, deliberate attempts were made to mislead the PIA employees against the management. The disgruntled elements held meetings in this regard and provided misleading stories to the press”, said the management.

Texan ;)

PIA To Procure Three Aircraft From Boeing

KARACHI: Pakistan International Airlines has formally turned down the offers of United Airlines and others for the sale of slightly used aircraft or ready for sale new aircraft. The PIA board of directors, which met on Monday in Islamabad, officially decided to place order for the new aircraft with Boeing.

European aircraft manufacturer Airbus and US giant Boeing had offered their products after the expression of interest for the replacement of fleet by the national flag carrier. Prices of Airbus were relatively very low but the PIA team voted for the US product and announced to procure B777-200ER wide body aircraft fitted with General Electric engines.

Various airlines and leasing companies having white tale (new aircraft ready for sale) and slightly used B777-200ER (of 2000 vintage) offered them at very low prices. However, the PIA officials set their minds in the very beginning to place order for the new aircraft manufactured as per their specification.

To complete the formality, the PIA officials remained busy for the last two months with the representatives of United Airlines and leasing companies. “Immediate refusal could create problems in the future so we are completing all the formalities,” one PIA director told The News while replying to the question about the fruitless meetings.

The PIA will place the order for the three B777-200ER aircraft before the end of this month, highly placed sources in the airline said. To finalise the deal, a team of Boeing is expected this week, they said. "The price has almost been finalised but other details like spares, training of cockpit crew, etc are to be concluded,’ they said.

Boeing will deliver the first aircraft in February 2004. The second and third aircraft will be delivered in March and June of the same year.

According to the procurement plan, five more aircraft will be inducted in the PIA fleet during the period 2006-2008. For the remaining five aircraft, nothing was decided yet, PIA officials said.

Though the model was almost decided but its price and package was not, they said. The board kept the induction of five aircraft flexible in terms of various versions of B777 aircraft, they added.

I feel like giving another dose of CHITROL to Ganja birathran and co after reading Abdali story, thanx for sharing Abdali :k: