Today Pakistan International Airlines completes 50 years of service to this great nation. Without doubt, it has been a remarkable and memorable journey. Through these past 50 years, the history of PIA has very closely reflected the history of Pakistan.
In fact, in some ways, the airline has created history in its own right, as it has played a major role in the development of some of the most remote areas in the country, linking them to the rest of the country and making them more accessible.
In this era of airline deregulation and intense competition for market share, many once-famous airlines have vanished forever from the aviation horizon or undergone major structural changes. Our national carrier PIA, on the contrary, has confirmed its position as one of the top airlines of the world. Walking down memory lane, we see that this journey was not free of turbulence.
In fact, up until just three years ago, PIA had to struggle in order to ensure its very survival. Even though the times were testing, while PIA was struggling to regain its balance, it continued the fight with the great fortitude and spirit that have always been its hallmarks.
Taking a serious view of the critical state of the national carrier, the Government of Pakistan appointed a new management in April 2001 to save the airline from imminent collapse and insolvency.
The management immediately initiated a series of radical measures to turn the airline around and make it a profitable and self-sustaining organization once again. By the grace of Allah, and with the full and unprecedented support of the Government, this task has now been achieved.
Financially and operationally, the airline is back on track and is once again one of the most viable and esteemed airlines of the region. The task was, however, far from an easy one, especially considering the deterioration that had pervaded the airline's systems over the years as well as the external environment subsequent to the events of September 11, 2001, which shook up the aviation industry world-wide.
PIA's recovery has been led by the firm and transparent marketing policies and strategies adopted by the current management to raise the traffic and revenue performance of the airline to the newly set standards.
In line with the strategy of expanding revenue base, PIA has adopted a policy of maximising overall capacity by increasing frequency in existing markets where feasible, and by expanding the airline's network to new destinations where potential exists.
2003 commenced with weakening growth prospects in major economies affecting the outlook for airline traffic growth. This was a time when the entire aviation industry suffered from the uncertainty of rising political tensions in the Middle East followed by the conflict in Iraq and the SARS outbreak affecting Asia.
Despite these negative indicators, the year 2003 marked an important milestone in the airline's efforts for sustainable growth and profitability. PIA achieved a record pre-tax profit of Rs 3.7 billion in 2003, 74% higher than earned during fiscal year 2002.
This momentum has been maintained, with a profit of Rs 1.4 billion in the first quarter of 2004.
During the first quarter of 2004, the airline achieved a passenger traffic growth of 16.4% over 2003 level, surpassing budget by 3.2%. Seat utilisation was 74.3% against the target of 70.2%. Passenger yields also showed an improvement of around 7%. A growth of 23% in passenger traffic and 15% in cargo traffic is confidently predicted by the end of 2004.
As part of its strategic plan to effect a recovery from the financial reverses of previous years, our airline is maintaining its thrust on route expansion and capacity utilisation for enhancement of revenue and profitability.
The Corporation initiated a long-term fleet modernisation plan in the year 2002, designed to replace and renew the aging fleet. During the current fiscal year, PIA has successfully completed the first phase of the fleet renewal plan by inducting three B-777-200ER aircraft and three half-life A-310 aircraft.
By June, another three A-310 aircraft will be inducted in the fleet, making a total of nine wide-bodied aircraft inducted during a single fiscal year, a remarkable achievement by any standards.
The new Boeing 777 aircraft have been dedicated to serving the high-profile UK, USA and Canadian destinations. Their induction in these markets has enhanced PIA's image, enabling improvement in market share and traffic mix.
The fleet renewal plan also envisages the replacement of the aging Fokker fleet with newer Turboprop aircraft in 2004. Aircraft manufactured by ATR (France), Bombardier (Canada) and SAAB (Sweden) are under consideration. These fleet changes will reduce the airline's fleet age from 23 years in December 2003 to 12 years by the end of 2004.
With the additional capacity added by the wide-bodied aircraft, the airline will be expanding its international network to include Houston, Moscow, Milan, Shanghai, Urumqi, Ras-ul-Khaima, Fujaira, Kuala Lumpur, Nairobi, Damascus, Male, Glasgow and Los Angeles by December of this year, bringing the total international destinations to a little over a golden fifty in this Golden Jubilee year.
The airline is firmly on the path to growth and expansion. All impediments have been removed except for the unfair Open Skies Policy introduced without reciprocity in the past. Recently the President has issued the following instructions:
-- To rationalise capacity and frequency by re-negotiating Air Services Agreements with 9 countries, ie Dubai, Qatar, Abu Dhabi, Kuwait, Oman, Bahrain, Singapore, Thailand and Switzerland.
-- To freeze Gulf carriers' operation at the summer 2002 schedule and to shift their operations from Islamabad and Peshawar to Lahore, after holding negotiations with the concerned aeronautical authorities.
-- To ensure that private carriers follow the provisions of the National Aviation Policy 2000 in letter and spirit and also start operations on socio-economic routes.
Unless these directives are implemented in letter and spirit, the aviation industry of Pakistan remains under high risk of jeopardy.
In the context of a developing country, PIA is more than a national flag carrier; it is an integral part of the fabric of national development and prestige. Today, as we celebrate the Golden Jubilee of this national institution, it gives me great personal satisfaction to be at the helm of its continuing flight to achievement.