Recently there have been few reports, editorials and comments in both print and electronic media concerning the financial health of PIA and the new revised standards of the European Union. All this, requires some clarification for the benefit of the general public.
While it is true, as one newspaper editorial recently mentioned that "the rot of political appointments" has plagued the Corporation, PIA has, since the coming into place of the incumbent management given due consideration to human resources in the airline. Consequently, PIA management has initiated various changes and restructuring required to bring in cultural change, improve efficiency and customer services without compromising on the safety standards in the company.
Some of these changes are already visible to customers and other changes will require time to become effective. The changes now underway will ensure that in 2007 PIA will be fully operationally viable and a profitable airline.
The correct position is that no PIA airplane has been restricted from flying due to safety reasons either to Europe/UK or America. PIA is still operating its entire schedule with minor changes and adjustments due to the low traffic season. Capacities and frequencies remain almost the same on all European and USA routes.
On the USA route only one flight to Houston has been temporarily suspended with passengers adjusted on our flights to New York with convenient onward connection. On the UK route only one flight has been reduced ie from 10 flights to 9 flights.
Similarly, on the Manchester route the flights to Toronto have been re-routed to fly via Manchester. Within the next couple of months, new Boeing 777 airplanes will be added to the fleet and the refurbished Boeing 747's will be flying again. Besides, leased aircraft will be acquired to meet international capacity required for the peak season. Therefore, it is quite untrue to state that PIA is going into a 'tailspin'.
PIA did not hedge fuel prices and consequently has, since the end of 2004, absorbed a huge 74 percent increase in its fuel prices. Comparatively for the nine months ending September, the fuel costs increased from Rs 18.3 billion in 2005 to Rs 25.5 billion in 2006. PIA's interest cost has also increased during the same period from Rs 2 billion in 2005 to Rs 3.4 billion in 2006 largely due to financing of fleet replacement.-PR