PIA moves towards Global Alliances

PIA and Thai Airways have entered into an exclusive strategic alliance whereby the two airlines will code share on all flights operated by both airlines between PIA & Thailand. This agreement is effective from March 25, 2007 in the summer 2007 schedule Thai Airways will be operating 12 weekly frequencies, five from Lahore, four from Karachi and three from Islamabad. PIA will be operating four frequencies per week, two each from Karachi & Islamabad. For example a passenger holding ticket on Karachi-Bangkok-Karachi route can now travel on Karachi-Bangkok-Lahore or Karachi-Bangkok-Islamabad or Islamabad-Bangkok-Islamabad by any of the two airlines. PIA & China Southern Airlines have entered into a long term strategic partnership. The two carriers now have code share on all flights between Pakistan & China effective March 25, 2007. China Southern Airlines (CZ) is the marketing partner on Pakistan International Airlines (PK) operated flights between Islamabad and Beijing. Similarly, PIA is the marketing carrier on CZ operated flights between Urumqi and Islamabad. PIA is already a code share partner of AeroSvit airlines of Ukraine for operation between Karachi and Kiev since November 2006. PIA and THY (Turkish Airlines) are also operating under code share agreement on flights between Pakistan and Istanbul since June 2006. PIA operates on IslamabadIstanbul route while Turkish Airlines operates on Istanbul-Karachi route. Pakistan International Airlines Fleet Passengers Aircraft Total Order Option J Q Y Total 184 205 205 50 118 478 320 329 310 393 Order delivery from 2015[25][26][27][28] To exit service starting in March 2015 12 40 132 Airbus A310-300 12 0 0 18 43 144 18 45 142 ATR 42-500 Boeing 737-300 Boeing 747-300 Boeing 777-200ER Boeing 777-200LR Boeing 777-300ER Total 6 6 5 4 2 3 37 0 0 0 0 0 5 13 0 0 0 0 35 54 240 0 5 5 35 60 215 35 60 304 10 24 40 94 Notes

30 448 35 45 240

Cargo operations
PIA operates a cargo delivery system within Pakistan. During the early 1970s, PIA operated a service called "Air Express" that delivered documents and parcels from one airport to another. Pakistan International Cargo was started in 1974 using two Boeing 707-320C, with services to the Middle East and Europe. The operations ended in the late 1990s when both aircraft were grounded. PIA Cargo transports goods across Pakistan as well as to international destinations. These include [35] [36] meat and vegetables, textiles, paper products, laboratory equipment and postal mail. In 2003 PIA launched "'PIA Speedex'", a courier service in Karachi, Lahore, and Rawalpindi/Islamabad; expanding within a year to 12 cities. Today, the airline offers over 70 locations within Pakistan, with shipments collected and delivered from customers' homes. From 2004 to September 2007, PIA Cargo operated two Airbus A300 Freighter aircraft chartered through MNG Airlines to Haan and Luton; initially these also operated to Amsterdam, Basel and Cologne.

The PIA is in dire need of replacing its ageing fleet, particularly Boeing-747-200, F-27 and Airbus B-4 aircraft. These aircraft will be phased out and replaced with modern aircraft to be able to stand in line with the quality airlines of the world. "If the fleet renewal does not take place by the end of 2002, the PIA will become the backyard airline of its competitors," remarked the source. The PIA management's strategy had been to concentrate initially on high-cost operational areas and right size the manpower in accordance with the new fleet plan, which would include phasing out of F-27 and Airbus B-4 aircraft. As required by the Ministry of Defence, the PIA has now developed an in-depth study of various choices available to the airline in the current aviation scenario regarding its fleet replacement. The aircraft evaluated include Boeing 777, new or slightly used A-340 in combination with A-310 aircraft in support of the PIA's current fleet. The PIA has six A-310 aircraft in its fleet and acquisition of the same type rather than a new type would result in six types of aircraft in the PIA fleet, resulting in huge savings, both in terms of manpower, maintenance, training and inventories. The Ministry of Finance has reviewed the PIA's fleet replacement plan before putting up final recommendation to President Pervez Musharraf for approval. The PIA management in Islamabad on Jan. 29 gave a presentation, which was chaired by the Finance Minister. Others who participated in the meeting included the Minister for Privatisation; Secretary-General, Ministry of Finance, and Secretary, Defence and

Chairman, PIAC. The Finance Minister appreciated the performance of the PIA management in overcoming its financial problems and turn around of the airline, which is now consistently recording operating profit since August last year, despite serious negative impact of discontinuation of over-flying Afghan airspace, uneconomic level of flying for the PIA aircraft due to military operations in the region, insurance surcharge, imposed by the under-writers and lately discontinuation of Far Eastern flights due to restrictions on over-flying across India and visa restrictions by most of the countries. The Finance Minister was briefed that though the PIA had been moving from one crisis to another, yet it had achieved one of the highest seat utilisation on international routes, ie 77.68 percent, which was highest in the history of the national carrier ever achieved. The Finance Minister was informed that the turn-around had been achieved by reducing the break-even seat factor through various cost cutting measures and re-structuring of the PIA's entire operating pattern. He was told that while the reduction in fuel prices was generally considered to be substantial, the factual position was that its impact had been offset by the above negative factors. The turn-around has been achieved essentially because of the management's professional re-structuring of the airline, which had increased the revenue through improvement in yield and other cost cutting measures in operational areas. From a position where the government was thinking to close down the airline, reaching a stage of recording profits in less than a year, is indeed no mean achievement. The PIAC Chairman, Lieutenant-General Hamid Nawaz (retd), realising the gravity of the situation, has picked up a team, comprising men of calibre and possessing required business acumen and professional experience. His choice paid dividends and the grit and determination with which the PIA Managing Director, Ahmed Saeed, and Chief Operating Officer, Khurshid Anwar, worked has lifted the airline, buried fathoms deep, to a position of respectability. The meeting was informed, loud and clear, that unless the PIA's balance-sheet was improved and financial covenants required for acquiring additional loans were met, the PIA would not be in a position to get financial support at its own. The balance sheet can be made acceptable to the financial institutions with the injection of equity so that the fleet replacement plan becomes acceptable to the financial institutions.

The new PIA management has done it and shown results earlier than expected. It is now waiting for a slight push to touch the height of excellence and put the national carrier along side those boasting that they were the best in the world. The PIA management is anxiously waiting for the presentation before President Musharraf where they are confident they will get the much-awaited nod

Warner says that "We need to understand that this kind of passive aggressive behavior means a challenge to any managers ability to achieve project goals resulting in a teams tasks never [4] delivered in time or quality, or general sabotaging of the teams productivity." In workers, it can lead to sabotage of projects and the creation of a hostile environment. In managers, it can end up stifling team creativity. De Angelis says "It would actually make perfect sense that those promoted to leadership positions might often be those who on the surface appear to be agreeable, diplomatic and supportive, yet who are actually dishonest, backstabbing saboteurs behind the scenes.

PIA is about to finalise its choice for the dry lease of five narrow body and two wide body aircraft for which it opened bids on 31st October 2012. Sources claimed that PIA Maintenance, Repair and Overhaul (MRO) department has no technological capacity to overhaul A320 Rolls Royce V2500, but management was standing firm to purchase the same due to unknown reasons. PIA management would have to send the engine of aircraft to either Germany or New Zealand for MRO which would cost almost $100,000 in engine transportation only, apart from other cost of MRO. Rao Qamar Suleman who terminated the services of a former Deputy Managing Director (DMD) Saleem Syani who was drawing about $40,000 as monthly salary apart from other perks and privileges.

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