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

Society Pakistan & World Affairs
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PIA recovery kicks off great!

PIA Earns Rs853m Profit For 3rd Quarter

KARACHI, Oct 28: PIA has earned an operating profit of Rs853 million for the 3rd Quarter of the current financial year, according to the quarterly report for the period July-September 2002 presented at the 267th meeting of PIAC Board of Directors on Monday.

The meeting was chaired by Secretary Defence and Chairman PIAC, Lt-Gen (Rtd) Hamid Nawaz Khan.

The results for the period January-September 2002 shows a pre-tax profit of Rs.1.40 billion, according to the report presented by PIA’s Director Finance.

Apprising the meeting of the main factors for improvement in earning and better results, he said that route restructuring, weeding out of uneconomical routes and cost cutting measures helped PIA to attain this profitability.

The report said that market showed positive development in the third quarter, as passenger and cargo capacity floated during the quarter reflects increase of 8.7pc and 13.38pc respectively over the second quarter.

Likewise capacity utilization indicated increase of 21.09pc and 23.53pc for passenger and cargo business over the second quarter and passenger seat factor and cargo load factor highest at 72.86pc and 65.22pc over the first two quarters of the current year.

The improved financial position of the airlines enhanced the scope for the implementation of its investment programme for replacement and renewal of aircraft fleet.

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why pia makes money? lots of jurnalists and camera people from all over world come in on way to kanul etc for taliban fighting. this one reason i think. other reason i smany of hem go back after few weeks home. i am doubtful because why air india is making loss and more loss but pia is making more more profit?

also united airlines sell use craft because they want cash money. because without cash they have big trouble i think.

most imporatnt is pakistan must be getting anti-molvi extremism alarms in all planes i advse

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[QUOTE]
*Originally posted by Ibda: *
why pia makes money? lots of jurnalists and camera people from all over world come in on way to kanul etc for taliban fighting. this one reason i think. other reason i smany of hem go back after few weeks home. i am doubtful because why air india is making loss and more loss but pia is making more more profit?

also united airlines sell use craft because they want cash money. because without cash they have big trouble i think.

most imporatnt is pakistan must be getting anti-molvi extremism alarms in all planes i advse
[/QUOTE]

foreing visitors are leaving the country mate, not many are comming, so its not a big factor in profit earning,

its only now PIA started to reduce costs, e.g, in only one airline in the world PIA used to allow economy class with 40Kg luggage and most of the times its more than that! that costs more feul to fly planes, now they have started charging for extra lugage more than 35 I think.

they also cut down on non profit making routes and more planes on profit makeing ones, thats another factor.

24

Great leap forward for PIA.

PIA Signs Accord With Boeing To Buy Eight B-777s

KARACHI: The Pakistan International Airlines (PIA) on Wednesday signed a definitive agreement with the Boeing Company for purchase of eight new Boeing-777 aircraft.

The agreement was signed at the PIA Head Offices by the Managing-Director Ahmad Saeed and Boeing Director International Sales Miguel Santos.

The order includes three 777-200ER (extended-range), two 777-200LR (longer range) and three 777-300ER (extended range) aircraft for use on PIA’s long-haul routes. Deliveries are scheduled to begin in February 2004 and continue through 2008.

Speaking on the occasion, the PIA managing-director said it is the most important day in the history of PIA as with the induction of state-of-the-art aircraft, the national carrier will become a new airline, which would be able to compete with all other world-class airlines in technology and passenger comfort. “It is great leap forward for the PIA,” he said.

“Our decision to induct new high-tech aircraft of Boeing-777 family is based on a plan to handle our airline’s continued growth and improved profitability over the next 10 years,” he said and added: “The 777s are the right aeroplane for our future needs because it will reduce our operating cost and help our airline become more profitable.”

The 777 family provides the flexibility with different capacities and range capabilities to meet all of the PIA’s long-range needs with one engine selection, he said.

The Boeing Company’s long-standing relationship with PIA extends to nearly 40 years. The carrier currently has a mixed fleet of aircraft from Boeing that include 707s, 737s and 747s aircraft and airbus. “After a thorough and transparent evaluation of new, used and lease alternatives, we have reached a solution that builds on PIA’s turnaround and recovery strategy that meets PIA’s needs,” said Miguel Santos, Director International Sale, Boeing Commercial Aircraft. “We look forward to participating in the next stage of their success, not only with these new aircraft, but also with a continuing expansion of the close working together relationship between our two companies,” he added.

The Boeing-777s will be powered by GE90-94B and GE90-115B engines. General Electric Aircraft Engines is the sole producer of engines for the 777-200LR and 777-300ER aircraft. The PIA’s 777-200ER will seat 327 passengers in a two-class configuration. The 777 sets a new level of comfort and spaciousness for air travel because of its new Boeing Signature Interior.

The 777 are the only jetliner to receive the Industrial Design Excellence Award, which was received for its passenger cabin. More than 400 777s are currently in service with 30 airlines around the world.

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PIA expecting profit :smiley:

PIA Expects Rs2bn Profit This Year

KARACHI: The Pakistan International Airlines (PIA) is expected to earn a profit of more than Rs2 billion this year, Chaudhry Ahmed Saeed, Managing Director PIA told the newsmen on the arrival at Karachi Airport on Thursday of the sixth aircraft, the national airlines has bought from Cathay Pacific.

The PIA had finalized the deal for the purchase of six aircraft from Cathay Pacific at $63 million. After the sixth and the last aircraft landed, the managing director accompanied by the journalists paid a visit to the aircraft at the tarmac.

Last year, the airlines registered a loss of Rs2.2 billion but this year it is on the way of making profit, he said. Replying to a question, he said the working hours of cabin crew are well within the parameters of international aviation standards. There is no deviation from the international standards, he maintained.

The cabin crew is not against the management, he said adding all the segments of PIA staff including cabin and cockpit crew have contributed to enabling the management to earn profit in such a short span of time, he added.

The fate of dailywagers would be sorted out shortly, he said. There will not be a single dailywager in the PIA in near future, he announced. Bonus announced by the management will be disbursed among the PIA staff before Eid. The minimum limit of bonus is Rs7,000 while the upper ceiling is Rs17,000, he said.

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PIA orders eight more Boeing 777s

Pakistan International Airlines Orders Eight Boeing 777s

U.S. and Pakistani government officials joined executives from Pakistan International Airlines (PIA) and The Boeing Company (NYSE: BA) in a signing ceremony today to formalize a definitive agreement for PIA to purchase eight new Boeing 777 airplanes.

The ceremony, held at the U.S. Department of Commerce in Washington, D.C., was attended by Deputy Secretary Sam Bodman of the Department of Commerce, Pakistan Secretary of Defense and Chairman of Pakistan International Airlines Corporation (PIAC) Lt. Gen. Hamid Nawaz Khan, Mr. Ahmed Saeed, Managing Director, PIA, and senior PIA and Boeing officials.

The airplane order, valued at $1.5 billion, includes three 777-200ER (extended-range), two 777-200LR (longer-range) and three 777-300ER (extended-range) airplanes for use on PIA’s long-haul routes. This is the largest airplane order in the history of PIA. Deliveries are scheduled to begin in 2004 and continue through 2008.

“The Boeing Company is a true partner. We have worked together to develop effective solutions and a plan to meet our airline’s vision for continued growth and improved profitability,” said PIAC Chairman Khan. **“This plan includes the newest, high technology airplane on the market – the 777 family. The 777 is the right airplane for our needs because it will enhance our operational efficiencies and profitability.” **

Boeing’s long-standing relationship with PIA extends nearly 30 years. The carrier currently operates a mixed fleet of 707, 737 and 747 airplanes. With this latest agreement, the United States and Pakistan are developing stronger relationships that benefit both industry and government.

“After a thorough and transparent evaluation of new, used and lease alternatives, we have reached a solution that builds on PIA’s market strategy,” said Douglas Groseclose, vice president, International Sales, Boeing Commercial Airplanes. **“The 777 family provides the flexibility to meet PIA’s needs now and into the future. We look forward to expanding our close working relationship.” **

PIA’s 777-200ERs will seat 327 passengers in a two-class configuration. The 777 sets a new level of comfort and spaciousness for air travel because of the new Boeing Signature Interior, which currently is offered on Boeing twin-aisle products. The Boeing 777 is the only jetliner to receive the Industrial Design Excellence Award for its passenger cabin. Recent surveys of thousands of passengers flying long-range routes around the world revealed an overwhelming preference for the 777 – more than three out of four passengers worldwide.

**For improved, more efficient in-flight service, the 777 is equipped with an advanced cabin management system. Linked to a computerized control console, the cabin management system assists cabin crews with many tasks and allows airlines to provide new services for passengers, including a digital sound system comparable to the most state-of-the-art home stereo or disc players. **

The 777’s advanced wing design enhances the airplane’s ability to climb quickly and cruise at higher altitudes and speeds than competing airplanes. It also allows the airplane to carry full passenger payloads out of many high-elevation, high-temperature airfields.

GE90 engines will power the Boeing 777s. General Electric Aircraft Engines is the sole producer of engines for the 777-200LR and 777-300ER airplanes.

More than 400 777s are currently in service with 30 airlines around the world. To date, more than 600 777s have been ordered, including 49 of the longer-range 777s, the 777-200LR and the 777-300ER jetliners.

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[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]

Sabre is a world wide booking engine (there are others like Amadeus). Every single major airline I know is interfaced with them. Having worked on travel booking systems, I dont understand what you mean by outsourcing it. Maybe they could develop the software in Pakistan, but they would still need to connect to the booking engine, so that PIA shows up to a travel agent say...in Ghana. Same goes for checkin etc.

I dont think PIA even comes up on Sabre at the moment (I know that it doesnt on Amadeus) which I am sure means a lot of reduction in revenue. Look at it this way, if PIA connects to sabre everyone will be able to sell their products offline AND online.

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Pakistani Commerical banks as PIA’s agents :slight_smile:

Banks Consortium Arranges $70m For PIA

KARACHI, Nov 14: **Pakistan International Airlines Corporation (PIAC), the national Flag carrier of Pakistan, signed a $70 million 5-year Morabaha Financing Facility on Tuesday to finance part of its Fleet Acquisition Plan for the purchase of 6 Boeing 747-300 aircraft from Cathay Pacific. **

The 5-year Morabaha financing has been jointly arranged and participated by a consortium of leading Pakistani commercial banks including UBL, HBL and NBP. UBL is also acting as the Facility Agent for the facility.

Since the Facility is secured against the receivables generated by the sales of PIA tickets in UAE, UBL is also acting as collection agent on behalf of the rest of the syndicate members.

The six aircraft, five of them were already on lease from Cathay Pacific Airways, were purchased by PIA at most economical price of $62m. The sixth Boeing 747-300 joined the PIA fleet in Karachi on November 7.

The airline is pursuing a long-term fleet modernization plan that envisages induction of eight Boeing 777 wide body aircraft, seven Turboprop new technology aircraft, four used A-310-300 aircraft and two A-310-300 freighters over the nine year period as per the business plan for 2003-2011.

The financial results of PIA for the period January-September 2002 showed a pre-tax profit of Rs1.4 billion attributed to PIA’s sound policy measures including route restructuring, weeding out of uneconomical routes and cost cutting efforts.

The improved financial position of the airline has enhanced the scope for the implementation of the investment programme for replacement and renewal of the aircraft fleet.

The structure that is envisaged in this transaction is that of Morabaha Financing where the Lenders will purchase the aircraft directly from Cathay Pacific through a direct payment and sell them to PIA on a deferred payment.

The repayment of the Facility is spread over 60 monthly principle and profit repayments with first payment due at the end of first month after the drawdown.

PIA has also mandated United Bank Limited, Citigroup and Islamic Development Bank (IDB) to arrange another financing facility of up to $150 million for financing its pre-delivery payments to Boeing for the purchase of first batch of three Boeing B777-200 ER aircraft.