Pakistan International Airlines (PIA) posted a gross profit of Rs 7.803 billion for the nine month period ending September 30, 2010. The PIA Board of Directors 328th meeting was held at Multan chaired by Federal Minister for Defence and Chairman PIA, Chaudhry Ahmed Mukhtar, which appreciated the performance.
The PIA earned total revenue of Rs 74.360 billion, which was 16.3 percent higher as compared to the same period of 2009. However, before tax loss was Rs 10.955 billion, as compared to Rs 11.403 billion in the preceding year. Board appreciated the efforts of the airline Management to explore new routes for national carrier to boost up the revenue. Barcelona was added as new destination during the same period and re-launch of Chicago flights and increased frequencies on a number of different routes.
Engineering business contributed PKR 0.78 billion, showing a healthy increase of 25 percent over the corresponding period last year. Board noted that Oil prices remained erratic during the period under review dipping to mid-seventies, but Oil prices have again started to rise with a barrel of crude touching $80.01 in October 2010.
Board emphasised that cost containment needs to be pursued on a priority for a turnaround to become a reality. To meet the challenges of turning around PIA the Corporation has embarked upon a comprehensive Business Plan giving it strategic direction over the next five years. A major component of this plan is PIA's commitment towards reduction in costs incurred under various heads such as human resources, fleet maintenance and revenue enhancement and yield improvement through route rationalisation. What is now required is for the principal stakeholders to come forward and make their contribution in terms of easing the inherited debt burden on the Corporation, provide a level playing field to the national flag carrier against regional and other international carriers, enabling an environment conducive to healthy competition, which in turn would enhance service standards and improve overall financial performance of the Corporation.
The BoD was informed that the Corporation managed to contain staff costs to levels lower than many competitors whilst at the same time it managed to recruit and retain some of the best people as a critical part of its long term objective of being a world class airline meeting customer expectations through excellent services, on-time performance, innovative products and absolute safety.
Board noted that direct Hajj Flights to Jeddah from Multan would provide comfort and convenience to intending Hajj pilgrims of Multan and surrounding areas like Khanewal, Lodhran, Pakpattan, Sahiwal, Vehari and Rahim Yar Khan. The meeting was attended by Captain Muhammad Aijaz Haroon, Managing Director PIA, Syed Naseer Ahmed, Malik Nazir Ahmed, Javed Akhtar, Lieutenant General Syed Athar Ali (Retd), Hussain Lawai and Khawaja Jalaluddin Roomi.-PR
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