The draft business plan for the Pakistan International Airlines (PIA) has entered into the final phase of completion. The new plan suggest the addition of new routes and planes to the national flag carrier.
As per the plan which is aimed at taking the airline back to the days of glory, the count of aircrafts available would be surged from 32 to 50 in the span of next 5 years.
Additionally, the business plan also suggests propositions and strategies for curbing the financial losses, which includes the closure of loss-making routes and the revival of such routes which are apparently more profitable.
Once the draft plan is finalised it would then be presented before the federal cabinet for approval.
As per sources, the plan also suggests a decrease in the airline’s operational expenses to the tune of Rs2.77billion in the yearly expenditure, with further reductions planned over the span of the next 5 years.
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Sources also told that within PIA, the plan also includes suggestions for surging the number of routes flown by the national flag carrier in accordance with the open sky policy, while a proposal to decrease the fees charged by the CAA and make those payments in Pakistani rupees rather than in US dollars has also been devised.
The Civil Aviation Authority charges of the country are relatively higher than that of other airports across the world, the sources also informed that the charges for a Boeing 777 at the federal capital airport are $5,000 per landing while the charges for an Airbus A320 are up to $1,155.
These charges are higher than the landing charges at the Beijing, Delhi, Dubai and Kuala Lumpur airports.
The plan also recommends 6 grounded planes should be made functional after being overhauled and maintenance.
The business plan documents reveal that the overall deficit experienced by the airline stands at Rs414billiobn which includes Rs247.7billion in loans and Rs114.7billion in the outstanding payments.
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