PIA clarification

23 Apr, 2011

PIA Clarifies a news item appearing in Business Recorder Karachi dated April21, 2011 titled: 'PIA charges highest fare from Hajj pilgrims": Analysts. PIA Spokesman said, PIA is not charging high fare from Hajj Pilgrims as mentioned in the news story comparing Hajj fare with regular scheduled flight. Airfare comparison is not calculated by distance/Hours of flights.
Only fuel and overflying charges are based on distance and flights hours. Other major cost such as landing, parking, handling, hotel layover of crew, fuel cost etc depends on number of flights or frequencies and type of aircraft used, the PIA spokesman explained.
Boeing747 Jumbo is used for Hajj operation where as New York and London flights are operated by Boeing 777 aircraft. He said that Rates of Handling, Landing and such other cost for Boeing747 Jumbo are higher than Boeing 777 /Airbus 310 aircraft.
Fare estimation for Hajj is done at least eight months before actual Hajj period. The fare price has increased this year as fuel cost has increased to US $110 per barrel as compared to US $77 per barrel in the year 2010, an increase of almost 43%. He further said that other cost such as Landing, Handling, Parking have also increased by more than 20%.
PIA also operates Hajj flights with the return leg empty ie it carries passengers to Saudi Arabia during pre-hajj and the aircraft comes back empty. Similarly for post-Hajj flights PIA sends aircraft from Pakistan empty and brings back hajjis to Pakistan.
PIA has to make special arrangements for Hajj such as transportation, deputation of additional staff and officers etc. The spokesman said that due to high cost of operation none of the other airlines carry Hajjis as per quotas allotted. Whereas PIA has to carry all Hajjis.
Fare for regular schedule flights are made and adjusted according to market demand during the year, where as hajj fare is made for one period and all costing are done at least eight months prior to start of Hajj operation. Even if price escalates later on, PIA does not increase its fare. PIA Spokesman concluded.-PR

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