20000324

PIA restructuring

and expanding operations

ISLAMABAD: Pakistan International Airlines (PIA), is 'not shy of competition' and has embarked upon restructuring its operations, utilising all bilaterals, undertaking expansion wherever there is potential, and will come out of crisis soon.

"We will become a quality carrier in terms of profitability, scheduled passengers convenience and product improvement," stressed Managing Director of PIA Arif Ali Khan Abbasi. In an interview he said the strategy being implemented gives priority to maximum utilisation of capacity on high yield market in order to bridge the gap of operating losses.

He said he took over as MD of the national flag carrier on October 12, 1999 and inherited accumulated losses of Rs 18 billion overdraft taken by the previous management. "We are bringing in financial discipline, looking at financing joint ventures and type of partnership and management in ground handling, ground training school and flight kitchen of PIA," he stated.

Arif Abbasi said there has been overall growth of seven percent of PIA traffic between October 1999 to January 2000, despite liberal aviation policy in Pakistan. He said landing rights to operate flights from various airports of the country have been given to foreign carriers, "When you ask for landing rights you have to give something in return. However, it is double edged, as competition is very good. We are not shy of competition, and welcome quality carriers, but not unethical price war. We would not allow shrinking of PIA," he asserted.

According to him, despite increased competition, the national flag carrier has enhanced its capacity by 11 percent in its summer schedule effective Mach 31, 2000. "We have decreased number of aircraft but restructurd our capacity. Birmingham (in UK), Hong Kong, Tripoli, Jakarta, and Almaty are being added as new stations of PIA from March 31. Flights to UK from Karachi, Lahore and Islamabad will be increased to 12 to 15 per week," he added.

Answering a question he said Saudi Arabia sector has been consolidated by utilising all available capacity with maximum flights by Boeing 747s. The national airline operates 23 weekly flights to Saudi Arabia Ñ 7 to Dhahran, 5 to Riyadh and 11 to Jeddah every week.

On Far East sector, Bangkok will be hub in the summer schedule with three (3) flights extended to Singapore and (2) to Hongkong every week by restructuring existing ones. In addition, two (2) flights will be operated weekly on Jakarta and Kuala Lumpur sectors. There will also be flights to Tripoli from Athens and to Almaty from Tashkent. PIA is also evaluating the CIS routes.ÑPPI