Prime Minister Raja Pervez Ashraf on Wednesday expressed the confidence that the new management of Pakistan International Airline Corporation (PIAC) would bring about a turn around in the national flag carrier with a new passenger friendly face. The Prime Minister made these observations, during a briefing made to him on measures taken by the new management of PIAC to improve the operations, at Prime Minister's House.
The Prime Minister directed that all the grey areas must be addressed and loopholes plugged and economic viability of PIAC ensured. He further directed the PIAC to consider feasibility of running more flights to Gilgit-Baltistan and Chitral. The Prime Minister was informed that PIA will start flights on Quetta-Kandhar route from December 25 this year. This is the first time that a new destination has been initiated after a very long time in the history of airlines.
The Prime Minister was also informed by Managing Director PIAC, M. Junaid Younus that a business plan of the corporation is being firmed up with emphasis on facilitating the passenger so that business can be attracted. The business plan being worked out is being prepared with the objective of attaining a break even by 2013, he added. The present share of PIA in the international passenger business generating from Pakistan is 32 per cent while PIA has a share of 71 per cent in the domestic market, said the Managing Director PIAC.
The Prime Minister was also informed that PIAC has earned operational profit in September and October this year, which sets the tone and pace of recovery. The Managing Director PIAC informed the Prime Minister that PIA is acquiring the first airbus, which will join in February 2013 followed by four in March and three in second half of 2013.
These narrow body aircrafts will be fuel efficient and lead to massive savings in fuel cost, which presently constitute 55 per cent of total revenue earned by the airlines. The Prime Minister was also told that a proposal is under consideration to outsource non-core operations to reduce employee to aircraft ratio, which is presently 485 employees per aircraft.
The Chairman, PIAC and Secretary Defence, Lieutenant General Asif Yasin Malik (Retd) said that the new management envisages an airline, which will neither be employee or government friendly but passenger friendly. The meeting was also attended by high officials of the government.