PIA in the last two years has been badly hurt by the exorbitant increase in fuel price reaching a high level $78 per barrel which had also adversely impacted the entire aviation industry resulting in an overall loss of $8 billion.
Taking due cognisance of this abnormal situation, PIA had already embarked upon a strategy to further enhance its revenue while containing all manageable cost without compromising the basic concept of three 'Cs' for the ultimate passenger convenience. The PIA task has now become more achievable with the softening of fuel prices which now is around $58 per barrel.
The management initiatives include e-ticketing, web-based booking, friendly frequent flyer programme, installation of state-of-the-art revenue management system, which provides for an incremental revenue of 2 to 7 percent in 2007.
Apart from this, the PIA plan also caters to refurbishment of its existing fleet while inducting three more 777 aircraft for deliveries starting from mid-December 2006 till February 2007 thus making a total of eight 777 family aircraft in PIA along with the induction of six ATR aircraft to augment PIA's feeder network.
In view of the initiatives being taken by the PIA management in all sphere of airline activity, including induction of fuel-efficient aircraft, the airline is confident of regaining its lost profit base and will continue to operate as a profitable airline during 2007 and onwards.
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