Airblue shows profit

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Abbas Ali
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Airblue shows profit

Post by Abbas Ali »

KARACHI, Dec 19: Airblue’s operating performance in 2006 has shown marked improvement over the last year as its profit after taxation increased from Rs82 million to Rs153 million.

According to the financial statements, the private sector airline’s passenger revenue increased from Rs1.543 billion in 2005 to Rs4.112 billion, an increase of 166 per cent in the current year.

When contacted, chief operating officer of the Airblue, Shahid Khaqan Abbasi, told Dawn that the gross profit of the airline increased from Rs64 million to Rs448 million, an increase of 600 per cent this year.

He said new fuel prices also had an impact as fuel cost increased from Rs519 million to Rs1.475 million.

Mr Abbasi said the airline also managed to sustain fuel price increase of over 50 per cent and obtained two A321s (Airbus aircraft) on dry lease from internal revenue generation without resorting to any external borrowing during 2006.

“Our achievements from internal revenue generation include our international operation to Dubai from Karachi, Lahore, Islamabad and Peshawar”, he added.

As per financial statements, cargo revenue also showed an increase of 32pc as it welled to Rs41m this year from Rs31m.

Short-term financing of the airline, which operates with a fleet of six aircraft, also reduced this year to Rs48 million from Rs206 million last year, a 330 per cent decrease.

Source: DAWN
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mohammad abdulaziz
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Post by mohammad abdulaziz »

This should be an eye opener for PIA management and should help them to refrain from continuously adopting the approach of “half empty”. PIA management has been holding fuel cost responsible for unprecedented loss that PIA has sustained. The comparison of fuel cost incurred by PIA Vs. Airblue as a percentage of Revenue evidences that Airblue fuel cost is 36% of Revenue as against PIA’s cost of 50% of the Revenue despite the fact that PIA has also added some fuel efficient brand new aircrafts in the current year.
Amaad Lone
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Post by Amaad Lone »

its profit after taxation increased from Rs82 million to Rs153 million.
airline’s passenger revenue increased from Rs1.543 billion in 2005 to Rs4.112 billion, an increase of 166 per cent
the gross profit of the airline increased from Rs64 million to Rs448 million, an increase of 600 per cent this year.
fuel prices also had an impact as fuel cost increased from Rs519 million to Rs1.475 million.
So while cost of fuel went up by a one billion rupees, revenues increased by 2.5 billion, offsetting the increase. GREAT JOB AIRBLUE.

Basically PIA problems are not related to higher fuel prices only, but other issues also. Plus to constantly blame the six leased A310s for PIA financial woes, considering the entire Air Blue fleet is leased.

I made a point sometime back that PIA needs to be broken up, and divided into three smaller airlines, not under the control of the federal government.

AIR BLUE announcement of higher profits makes my belief stronger, that PIA has outlived its utility and is nothing but a drain on the Pakistani treasury.

Here is a way to start privatizing PIA.

Transfer the six leased A310325s to AIR BLUE, along with its crew and some employees, and allow AIR BLUE to take over some PIA routes.

This way the process of dismantaling PIA starts, with AIRBLUE becoming the KARACHI based Pakistani airline, and Lahore gets a different airline.
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Max
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Post by Max »

What is Airblue plane/employee ratio?
FMC
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Post by FMC »

Remember Shahid Khaqan was once the Chairman of PIA. He learnt these tricks from there. Isn't Airblue cannibalizing it's planes at karachi?
zerbaer
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Post by zerbaer »

Who is the sucker this time !
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Post by zerbaer »

Basically PIA problems are not related to higher fuel prices only, but other issues also. Plus to constantly blame the six leased A310s for PIA financial woes, considering the entire Air Blue fleet is leased.

I made a point sometime back that PIA needs to be broken up, and divided into three smaller airlines, not under the control of the federal government.

AIR BLUE announcement of higher profits makes my belief stronger, that PIA has outlived its utility and is nothing but a drain on the Pakistani treasury.

Here is a way to start privatizing PIA.
PK's six leased A310 were dry leased well over a year ago for 10 years when no qualified requirement or evaluation existed. PK didn't have the money or the need. Having already scrapped a couple of B4s, they first engineered the partial grounding of A300B4 with the most popular engines, then came the Cracks serving as additional reason for prolonged unscheduled groundings. Strangely the supposed wide cracks in the structure became narrow in time and well within limits. First, four B4s + 11 F-27 + 19 JT9D-7A/J engines + 6 JT3D3B Hush Kitted engines etc were all being sold to some unknown company in Hong Kong & UK for $5 million. That didn't work and eventual the remaining fleet of six were given away along with spare engines and tons of high value components.

All the frenzied activity cost money& expertise. The tax payers got the shaft, again. If PK's utility as a vehicle was to: enslave the nation via debt/liabilities where none existed; destroy the institution & material that is someone else's property entrusted to the grand race of lying employees & trustees; syphon wealth etc etc and then have the audacity to blame the victims: then the mission has been accomplished & it has outlived its utility for the usurpers.

Airblue can't afford to buy for now. PK, however, also are entrusted with valuables like hotels, real estate etc in addition to the fleet/spares/route/expertise/GOP guarantees and so on. Where did all that come from for some in-coherent folks to squander, very surprisingly at behest of those who may actually be experts in their trades relating to aircraft ops.
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Post by Cobra »

zerbaer wrote:Who is the sucker this time !
PIA is infested with LEECHES and jumbo sized leeches i mean.
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Post by Moin »

ED should consider acquiring some of Austrian's A330-200's. OS is retiring its 4 A332's from the fleet by the end of the year.
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Post by AirBlue »

I got to talk to my father yesterday about updates ... the huge new a/c order is not arriving into the fleet until 2008 .... before that, the airline is planning to acquire either A330s or 340s for now so that the UK flights can commence .... the marketing director of ED stated that we are so sure of starting UK flights that 'agar paidal bhi jana parha to jain gay' .... the date is june 18th for the first flight ... wen ED completes 3 years .... there is no black and white sourse of this as you can tell but i will let you all know wat ever the updates are ! .... and yea....no doubt they doubled thier profit!
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Post by F27 »

Air Blue UK paidal hi jaaey gaa.. No match for PIA.
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Post by AirBlue »

lol ok ... we'll see :) ... and FYI ... thats a pun...
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Post by F27 »

You don't see. You have to put your acts together. Can you tell me the number of aircraft that AirBlue has imported into pakistan and their technical status?
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Post by AirBlue »

F27
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Post by F27 »

Thanks for the link.