PIA's brand new fleet of Boeing 777-LRs and ERs

PIA's brand new fleet of Boeing 777-LRs and ERs

Pakistan International Airlines has an amazing history. It was, through the 50s, 60s and 70s, perhaps Asia’s leading airline. These were the days of Pierre Cardin designed uniforms, amazing ads, trail blazing destinations (PIA was one of the world’s first non communist airlines to fly to Beijing) and unparalleled service.

Starting in the 70’s, though, things began to change. PIA was taken over by less than competent management. The global airline scene became far less friendly, new regulations, security and political considerations made life difficult for passengers and oil prices have, more recently, become an excuse for most airlines to reduce levels of service. PIA has not been immune to any of these unwelcome changes. And if that wasn’t enough, with Pakistan’s Open Skies aviation deregulation policy, which was initiated almost 15 years ago, PIA’s exclusivity as the only airline operating in Pakistan was no more. This was certainly good for Pakistan and the aviation industry in general, but not so much for PIA. A slew of new names hit the scene; Shaheen, Bhoja, Aero Asia, Askari, Royal Airlines, Schon Air, Princely Jets (charter), Air Blue and others. With increased competition on domestic and international routes and a slide into mismanagement PIA was not doing well. In particular, over the last 5 years, PIA has been posting losses consistently.

Now THAT is what I'm talking about. A PIA ad from the '60s.

Now THAT is what I'm talking about. A PIA ad from the '60s.

After the departure of the last Managing Director, PIA’s Board decided to take a completely different approach. Rather than positioning a bureaucrat with little or not experience of the industry, or transplanting someone to whom PIA would have been completely alien, the Board decided to appoint a former PIA Captain, M. Aijaz Haroon to the position of MD. The appointment, back in May 2008, was not without critics who claimed that it was Mr. Haroon’s connections that had enabled him to outdo others in the running.

In just under a year, though, Mr. Haroon has proved his critics wrong. This morning, news came out that Pakistan International Airlines is expected to post a profit for the first time in 5 years!

A PIA press release said:

The [board] meeting approved the budgetary provisions for 2009 including projected Revenue of Rs.121 billion and after tax profit of Rs.600 million.

PIA, is in fact, going through a major overhaul. After the successful integration of the first Boeing 777-LR aircraft, the world’s longest range planes, PIA has added a total of 9 Boeing 777 ER and LRs and is scheduled to add another very soon, concluding the order for 10 777s placed with Boeing. PIA is scheduled to further grow the fleet with an order for 7 new Airbus A320-200s placed in mid 2007.

PIA's image is undergoing an overhaul

PIA's image is undergoing an overhaul

All these aircraft come with interiors and capabilities that airlines like Emirates and Etihad have made essential. Be it the Linux-powered inflight entertainment system or the in-cabin gaming and communications.

Not content with rejuvenating the fleet alone, PIA is also adding new destinations; something it hasn’t really done in a while. The airline has already announced the addition of Barcelona as a “PIA city”. Flights are scheduled to commence in March 2009. Dublin is another new destination the airline has already moved to include in its network, and finally Stansted, UK, an ex-PIA destination will be restored soon.

We wish PIA and its new management the best of luck! They have started to move in the right direction in restoring profitability and resolving many of the employee issues. We look forward to the time when PIA’s erstwhile position as Asia’s number one airline is restored.