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Here Is Some News On PIA  
User currently offlineKHI747 From United States of America, joined Oct 2000, 1614 posts, RR: 1
Posted (6 years 7 months 3 weeks 6 days 1 hour ago) and read 2894 times:

An article on PIA's state of affairs in Pakistans leading english newspaper "DAWN" can be found below.


PIA’s Chicago flight to end in September

By Our Staff Reporter

ISLAMABAD, Aug 23: Mounting losses due to eroding customer base forced the Pakistan International Airlines (PIA) to stop flights to 11 foreign destinations over the past few months and it is going to discontinue its service to yet another destination, Chicago, next month.

The airline with the fast shrinking international network has also decided to reduce frequencies on four destinations. The airline says it is suffering losses to the tune of Rs1 billion a month.

The destinations PIA discontinued its flights to in the past few months are Houston, Frankfurt, Amsterdam, Rome, Athens, Moscow, London, Nairobi, Urumqi, Singapore and Colombo, while Chicago would be taken off the PIA operation charts from Sept 15.

The destinations that are being operated with reduced frequencies are Paris, Birmingham, New York and Dubai.

Aviation experts see PIA being reduced to a regional carrier.

The decision to scale down operations comes at a time when foreign carriers flying from destinations abandoned by PIA for being commercially unattractive are either seeking increased frequencies or plan to resume their operations to Pakistan. Planned resumption of flights between Karachi-Lahore and Frankfurt by Lufthansa is just one example.

Other airlines planning to resume operations to Pakistan include Air France and the Swiss Airline. British Airlines is increasing its flights to Islamabad and is also considering flights to Karachi. Similarly, Cathay Pacific is increasing the number of its flights to Karachi.


Here is the link to the article: DAWN

Its unfortunate but there is no hiding from it.I have been saying for months on this forum that PIA will most certainly become just a regional carrier for the most part,with just a handful of long haul flights to cities with large Pakistani immigrant populations.(The London mentioned in the article is Stansted)

And no,they are not cutting all these routes because of the lame excuse some supposed PIA experts use on this forum blaming the EU aircraft restrictions.The cause is simply their eroding customer base,highlighted clearly by the article as well.

Who wants to travel an airline with:
1, absurd schedules
2, lack of frequencies
3, inconsistent inflight product
4, no alliance and a hopeless FF program
5, rampant delays
6, No booze (dry airline)....etc...etc...etc

Plus they have their work cut out by relying entirely on a very low yield home market,not exactly easy for an airline with 350 employees/aircraft coupled with hopeless management.

Too add insult to injury (from PK's perspective),their traditional hub KHI is now dominated by carriers from the gulf.With the significant amount of seats offered by the likes of EK,EY,QR and no such issues that plague the home airline-PIA is all but gone from KHI in terms of long haul traffic.The precious few long hauls left are targeted for LHE and ISB.

What this results in eventually is the Rs.1billion loss/month (Equates to $17m/month or $200m/year) and they have been incurring these for all ages now.The Government of Pakistan keeps injecting funds into PK to bail it out otherwise it would not be flying today,thats how dire the financial situation is.At this point in time,the state has too many other things to worry about then PIA.The airline has no choice but to consolidate and reduce its exposure.Hence a reduction in its international network,specially loss making long haul routes,is a matter of certainty.

Personally i have no doubt that PIA will become essentially a regional airline,if it hasnt already.They should sell their B777LR's as they cant utilize them anyway.Even after PK consolidates and is left serving just a handful of long haul routes catering to immigrant Pakistanis in UK and US,the only way they can win is by offering atleast daily frequencies.With B772 in 2-class config as their smallest a/c,that would be simply too much capacity.

What they will absolutely need at that point will be aircraft that are designed for thin and long routes.That means they must invest in B787's very soon as it would allow them to operate daily flights without offering excessive capacity.

I hope PK gets bought out by one of the gulf based airlines,as i feel thats the only hope long term.

9 replies: All unread, jump to last
 
User currently offline777way From Pakistan, joined Dec 2005, 5716 posts, RR: 4
Reply 1, posted (6 years 7 months 3 weeks 5 days 22 hours ago) and read 2787 times:

Quoting KHI747 (Thread starter):
I hope PK gets bought out by one of the gulf based airlines,as i feel thats the only hope long term

Same here.

Quoting KHI747 (Thread starter):
The destinations PIA discontinued its flights to in the past few months are Houston, Frankfurt, Amsterdam, Rome, Athens, Moscow, London, Nairobi, Urumqi, Singapore and Colombo, while Chicago would be taken off the PIA operation charts from Sept 15.

Rome schedules still up at website.

Quoting KHI747 (Thread starter):
With B772 in 2-class config as their smallest a/c,that would be simply too much capacity

They also have Y+, which I think market as third class.


User currently offlineKHI747 From United States of America, joined Oct 2000, 1614 posts, RR: 1
Reply 2, posted (6 years 7 months 3 weeks 5 days 6 hours ago) and read 2585 times:

Quoting 777way (Reply 1):
They also have Y+, which I think market as third class.

Yes Y+ is another class but in terms of seating there is no difference between Y and Y+

For all practical purposes the B777's in PK's fleet are configured as 2 class aircraft (Y/Y+ and J)

Quoting 777way (Reply 1):
Quoting KHI747 (Thread starter):
I hope PK gets bought out by one of the gulf based airlines,as i feel thats the only hope long term

Same here.

Which airline do you think is a candidate for acquiring PK? In my opinion it has to be one from UAE,EY more likely then EK since its from Abu Dhabi.But it also doesnt have to be an airline necessarily....


User currently offlineBofredrik From , joined Dec 1969, posts, RR:
Reply 3, posted (6 years 7 months 3 weeks 5 days 5 hours ago) and read 2528 times:

What about Copenhagen and Oslo?

Note: PK have a new and very nice homepage
http://www.piac.com.pk/


User currently offlineMalaysia From United States of America, joined Nov 1999, 3316 posts, RR: 0
Reply 4, posted (6 years 7 months 3 weeks 5 days 4 hours ago) and read 2487 times:

I would buy PK and restart Combi Service to the US Big grin

I miss the Combis to IAD, YYZ, and JFK

Its a shame that they were a pioneer in the 50s - 70s in Central and South Asia for commercial aviation



There Are Those Who Believe That There May Yet Be Other Airlines Who Even Now Fight To Survive Beyond The Heavens
User currently offlineOA260 From Ireland, joined Nov 2006, 26489 posts, RR: 58
Reply 5, posted (6 years 7 months 3 weeks 5 days 4 hours ago) and read 2467 times:

What a shame to see PIA in this state. I hope they can do something and re structure. Which routes are now left out of London???


AEGEAN-OLYMPIC AIR - ΟΛΥΜΠΙΑΚΗ " μέλος στη Star Alliance
User currently offlineJambo From Tanzania, joined Dec 2004, 247 posts, RR: 0
Reply 6, posted (6 years 7 months 3 weeks 4 days 23 hours ago) and read 2369 times:

It is sad to see PIA re-introduce NBO flights then close down. And for almost one year after closing down their flights to NBO, they still mantained their own offline office in the city and a manager from Pakistan plus the staffs and other bills e.t.c

Just a short while back they appointed an Agent to cater for offline sales and closed down their own offices, sent the Manager back... but to run offices without any flights for 1 year is abit too much.....


Part of the US$ 200M losses per year.!


User currently offline777way From Pakistan, joined Dec 2005, 5716 posts, RR: 4
Reply 7, posted (6 years 7 months 3 weeks 4 days 23 hours ago) and read 2326 times:

Quoting KHI747 (Reply 2):
Which airline do you think is a candidate for acquiring PK?

Qatar Airways, more so since they gifted the Amiri Flight A310, they are expecting something return, rumored that things are being worked out, maybe thats why PIA is being made to sink.


User currently offlineKHI747 From United States of America, joined Oct 2000, 1614 posts, RR: 1
Reply 8, posted (6 years 7 months 3 weeks 4 days 17 hours ago) and read 2212 times:

Quoting 777way (Reply 7):
Qatar Airways, more so since they gifted the Amiri Flight A310, they are expecting something return, rumored that things are being worked out, maybe thats why PIA is being made to sink.

Very true.Qatar is a very likely option as well.....economic ties between the countries are getting stronger and stronger BUT i dont know if the gifting of the A310 and more so the financial situation of PK are necessarily linked to this.PK has been a hopeless case for the better part of the last 3 decades.


User currently offlineKHI747 From United States of America, joined Oct 2000, 1614 posts, RR: 1
Reply 9, posted (6 years 7 months 3 weeks 3 days 21 hours ago) and read 2017 times:

Its interesting that Jacobin777,one of our most active a.net members,with a keen interest on Pakistani aviation has'nt participated in this topic.

With his drastically different outlook on PK then mine,i would love to hear his comments on this topic.


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