Karachi : PIA Chairman & CEO, Air Chief Marshal Rao Qamar Suleman (rtd) on Saturday expressed confidence with support of Federal government, valued shareholders and a dedicated PIA family, will overcome challenges and Insha Allah will be in a position to turnaround national flag carrier.
He was presiding 55th Annual General Meeting at local hotel here in which shareholders gave suggestions and queried for turning around airline. PIA Chairman said during 2011, despite many challenges added new destinations including Zahedan, Colombo, Madina. In face of competition, PIA managed to retain its international market share of 39% and increased its domestic market share to 76 from 74% last year.
However, during 2011, slow economic growth in developed economies placed pressure on aviation business across the globe resulting in economic uncertainty. International travel growth remained depressed and showed mixed performance across regions, he added.
He said outgoing year witnessed increase in average jet fuel price from USD80 per barrel in 2010 to USD110 per barrel in 2011. PIA was exposed to volatility in jet fuel price. On domestic front, Rupee continued to depreciate against US Dollar starting year at around Rs 86 per US Dollar and closing at around Rs 90 per US Dollar. Rupee depreciation still continues and is presently 93 + per US Dollar.
While, PIA commenced work on development of a comprehensive business restructuring and turnaround plan to set in place right strategies, controls needed to bring it back on path of profitable operations. Turnaround plan and 5-year financial model will be put in place in coming months, he said.
PIA signed purchase agreement with Boeing Company for acquisition of five Boeing 777 aircraft and plans to induct narrow body planes to augment capacity and bring efficiency. A focused approach to customer service will greatly help PIA return to profitability, he added.