PIA Gears Up to Become Profitable in Four years, Launches Business Plan

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Abbas Ali
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PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by Abbas Ali » Wed Dec 27, 2017 1:25 pm

Islamabad PIA is ready to implement the first phase of latest business plan, V1 as its called after the V1 Velocity that an aircraft achieves on the runway before committing to fly, to turn around the company in 18 months. As per the latest Business Plan the airline is geared to achieve profitability by 2022, if not earlier.

V1 is the speed at which the aircraft reaches and the pilot commits to fly! It is the momentum just before taking off. Very aptly, this is the name of the first phase of the actions towards the Big Change.

While introducing the V1 initiative, Dr. Musharaff Rasool Cyan, CEO PIA said that “I see PIA dominating the skies again! I see it clearly and I see it surely! And my confidence comes not from things we promise but things we have already delivered and are every day accomplishing to bring a positive change.” He further stated that “the engines are revved and we are on the runway and well on our way to gain maximum speed to take off. We are committed to fly to great heights,” remarked Dr Cyan, as he introduced the V1 initiative.

Understanding the importance of making changes in shortest time, the V1 initiative outlines a roadmap to ensure immediate drastic improvements in services. Over 40% of the activities have already been rolled out. The activities include cabin look enhancement; ground staff customer services and cabin crew refresher training; IT transformation for improved customer touch points and ease in interacting with PIA; focus on direct selling channels; new uniform for ground staff; new revenue accounting systems; Rebranding of PIA and increased digital footprint of PIA; and formulation of controls for revenue leakages.

The operating reports from last couple of months confirm PIA’s upward trajectory. The strength of the business plan can be seen in the positive results seen as sales rose by 29% since the month of October 2017, and growing every day.

To date PIA has rolled out 7 refurbished aircraft. Customer Service touch points is also seeing improvements and increased engagement and interaction is being observed through SMS, Call Centre, App and Social Media Platforms. Rebranding of the aircraft, the flying global billboards, is also underway with new fresher look and feel, contemporary but tied to our rich legacy and lineage.

With growing market above current 67% share in the domestic market, Pakistan International Airlines, is already the national market leader, carrying millions of passengers over largest domestic network, covering all parts of the country.

Now the aim is to gain glory on the international realm. In this endeavour a clear roadmap till 2022 has been outlined in the recently launched Business Plan. With a turnaround of the airline promised in 18 months, work is in full gear to achieve the goals.

Using the same customer centricity inspired “Glocal” approach; PIA is changing its business practices and has set clear set of targets till 2022: Increase the fleet from 36 to 43; Increase the revenue by almost 100%; move from an operating loss to an operating profit of 6 Billion; and increase direct networking points from 50 to 57 and virtual network to over 100. PIA also has set itself a new vision, a truly global profitable airline while being the pride of Pakistan, with customer centricity and excellence in everything as the guiding principles.

A nationwide survey was conducted to gauge the need of the travellers. The results of the survey were then transformed into actionable points, almost of all of which now are part of PIA’s V1 initiatives.

The initiatives taken are already getting noticed internationally and are getting the accolades. PIA is spreading its wings once again to soar high in this world like it has never before.

Source: Pakistan Observer
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uzkt01
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Re: PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by uzkt01 » Wed Dec 27, 2017 2:40 pm

Just talking big. As pointed out by ex-CEO PIA is too small to be profitble. They need to add atleast 8 medium capacity planes preferably 4 A321s and 4 A330s just before thinking of a revival plan.

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Re: PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by Mansoor Mela » Wed Dec 27, 2017 5:16 pm

Get setious Cyan. This V1, revving up engines and spreading wings terminologies arent going to do it. The present government will be completing its 5 years very soon and you people are as clueless about how to turn around PIA as you were 5 years ago.
PIA will only get fixed if Imran Khan becomes PM of Pakistan, because he has no vested interest in the GCC countries.
My opinion is based on two foundations:
1. I am a graduate of Embry-Riddle Aeronautical University 1984. and
2. I worked for PIA for 30 years in Engineering and Marketing (cargo and passenger) in Far East, Europe, USA, UK and Pakistan.

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Re: PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by Mansoor Mela » Wed Dec 27, 2017 5:33 pm

PTI will change the ground realities in favour of PIA. The Airline will thrive in that soil.

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Re: PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by Sadiq » Wed Dec 27, 2017 7:29 pm

“the engines are revved and we are on the runway and well on our way to gain maximum speed to take off. We are committed to fly to great heights,”

Dr Rasool, with PIA legacy loans mounting to Rs 350 billion+ & inability to pay salaries ontime and honoring its commitments to PSO,FBR and suppliers does this rhetoric will work?

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Re: PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by Abbas Ali » Wed Dec 27, 2017 8:16 pm

Such future plans with tall claims were announced by PIA managements in the past also but the airline continues to suffer losses since 2005.

An example from year 2008.

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Re: PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by Mansoor Mela » Wed Dec 27, 2017 8:23 pm

Cyan is Kirmani Light.

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Re: PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by mohammad » Thu Dec 28, 2017 7:20 pm

I think PIA is beyond redemption. Someone needs to take the brave step of winding it down and starting from scratch. Its time to let the private airlines take over the international routes.

If an airline with Zero competition on direct flights to Europe, USA and Far east can not hack it than no plan in this world is going to save them. Until people feel comfortable to pay more and take a connecting flight just to avoid PIA there is no hope.

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Re: PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by Sadiq » Fri Dec 29, 2017 1:00 pm

Long on rhetorics short on performance, amply illustrates PIA V1 plan.

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Re: PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by Abbas Ali » Sat Dec 30, 2017 6:53 pm

Prime Minister Chairs Meeting to Review PIA’s Business Plan

December 30, 2017

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Prime Minister Shahid Khaqan Abbasi chairing the meeting.

ISLAMABAD, Dec 30 (APP):
Prime Minister Shahid Khaqan Abbasi Saturday chaired a meeting to review the proposed Business Plan of Pakistan International Airlines (PIA) and issues related to the aviation sector.

He reviewed the issues regarding the efficient operations and revised Business Plan of the Pakistan International Airlines Corporation Limited (PIACL), a Prime Minister's Office statement said.

Source: APP

The meeting was attended by Aviation Adviser and high ranking officials from the Aviation Division and PIA.

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Adviser to the Prime Minister on Aviation Sardar Mehtab Ahmed Khan Abbasi.

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(Left to Right) Chairman PIA, Secretary Aviation and Chairman CAA Board Squadron Leader (Retd.) Muhammad Irfan Elahi, Chief Executive Officer (CEO) PIA Musharraf Rasool Cyan and Chief Operating Officer (COO) PIA Zia Qadir Qureshi.

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(Left to Right) Chief Operating Officer (COO) PIA Zia Qadir Qureshi and Chief Commercial Officer (CCO) PIA Bilal Munir Sheikh.


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Re: PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by Abbas Ali » Sun Dec 31, 2017 12:01 pm

The Business Plan presented by PIA management to Prime Minster Shahid Khaqan Abbasi included restructuring of long term loans.

PM Abbasi directed PIA management to present airline's performance report on quarterly basis and asked them to submit next report after the end of March 2018.

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Re: PIA Gears Up to Become Profitable in Four years, Launches Business Plan

Post by Abbas Ali » Mon Jan 08, 2018 1:48 pm

PIA has flown into oblivion, but its new CEO wants to steer it back

By Salman Siddiqui

January 8, 2018

KARACHI:
Pakistan International Airlines (PIA) epitomises everything right and wrong about the country. From a national pride, able enough to be a role model for other airlines, to a loss-making state-owned entity that is often the subject of debate, and embarrassment, the company has travelled a long way.

Among its several achievements was its instrumental role in establishing what is now among the world’s top airlines. Emirates will forever remain indebted to PIA’s jets and crew as it ascended into glory, while Pakistan’s national carrier flew into oblivion.

Currently, PIA has become a burden on Pakistan’s fiscal operations. The year 2004 was the last financial cycle PIA enjoyed a net profit, which amounted to Rs2.3 billion. Its share price at the end of December that year was Rs13.7.

Since then, PIA’s accumulated losses have soared to reach Rs319.10 billion by the end of March 2017. At the same price, its share price has plummeted to Rs4.53, a massive 67% plunge.

Issues in delivering quality service and involvement of a few staff members in unprofessional, unethical and unlawful activities have hampered its reputation.

But there is a change in the air. The government has recently handed over the wheel to new hands.

Nawaz Sharif, then prime minister, appointed Musharraf Rasool Cyan as PIA’s chief executive officer who took charge in September 2017 and projections on the airline’s future performance are gaining traction.

In a maiden and exclusive interview with The Express Tribune, Cyan says the airline’s turnaround will occur in the next 24-30 months.

“It is an exciting organisation,” Cyan said, admitting there was work to do as he said it. “There is lot to be done here. It requires proper economic planning, reforms, and a lot of management.”

The airline seems to have hit issues because of a backlog of issues, said Cyan, adding that the failure to take decisions has made the situation worse.

For example, it has taken some of the aircraft on lease at a higher price than the one prevailing in the market and its IT system remains outdated and obsolete when compared with other players.

It has yet to upgrade softwares at several departments including engineering, reservation, flight planning, for efficient use of fuel, and upgrading cabin environment for passengers. It is not using the latest ‘data analytics’, which the modern aviation industry and other businesses are using to snatch market share.

“I am fixing these things immediately. The benefit of this (data analytics) is that sales have improved in the last three months and revenue has picked up. Then we have started the process of eliminating losses,” he said.


The CEO said the company has carried out analysis of which routes are causing the most losses, while studying potential ones where a market could be gained.

“As a business, this is our commercial planning. This year, we are going to apply this and minimise losses.”

Cyan said PIA will fly on new international routes in 2018, including Al-Qassim in Saudi Arabia, Guangzhou in China and one more destination in the region, which may be Mashhad in Iran.

On the other hand, it is considering suspending or reducing the number of flights on some routes. The reduction in flight frequency could be seen on the route to Muscat and Kuwait.

Flights to Dubai and Toronto are also incurring losses, but the airline is confident that the routes could be made profitable. Cyan also said Toronto is going to become a connecting flights’ destination for PIA to North America.

“Almost all the North American airlines fly to Toronto,” he said.

Suspension of flights to New York, which was causing PIA a loss of Rs1.5 billion per year, was part of the exercise. Passengers may now travel via Toronto where PIA has increased frequency of flights to five a week.

“Redeployment of the aircraft from the loss-making New York route to Saudi Arabia has started earning a profit,” the CEO said.

PIA flies to around 109-110 destinations around the world every day, including the local ones.

Similarly, aircraft selection will be made according to distance and booking of seats on flights, he said.

With the re-alignment and restructuring, PIA has gradually started recovering. “PIA made additional sales worth Rs1.5 billion in November (2017). They rose to Rs8 billion from Rs6.5 billion (in November 2016). Similar is the situation seen in December 2017.”

Under its project named V1, which means velocity of the aircraft before taking off, the airline has decided to improve services across the board in the next 24 months and generate an ‘operating profit’.

As per the five-year business plan presented to the government, PIA would break even in the third year and would generate profit before tax in the fourth year. “Four to six per cent profit is (considered) a healthy profit in the aviation industry,” he said.

“This is all to be achieved in the given timeframe subject to legacy debt (around Rs200 billion) not to be counted for the time being,” he said, adding PIA is in talks with the government for putting the legacy debt on the side.

Right now, PIA is managing a 36-aircraft fleet. “We aim to take the total number of aircraft to 44 in the next three years,” he said.

Cyan said privatisation of the airline and employees’ lay-off are no more on the agenda. “I have asked the government about its plans for privatisation and it replied in the negative,” he said.

He also spoke against the open skies policy and demanded a level playing field.

During his doctoral studies, Cyan took case studies of turnaround of Continental Air of the US and Malaysia Airlines. “CEO of Malaysia Airlines had no aviation industry experience. But he managed to turn around the airline.”

Source: https://tribune.com.pk/story/1603039/2- ... teer-back/
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