Premier Service of Pakistan International Airlines (PIA) has an operating loss of over Rs 1.5 billion during first three months. According to official statistics, compiled to determine the total operating cost (TOC) of Premier Service revealed that this service had earned TOC loss to the tune of Rs 1.563 billion from August 14, 2016 to November 30, 2016.
It further disclosed that the loss on account of direct operating cost surged to Rs 715.34 million during said period, depicting poor planning to launch such an expensive and luxurious service.
With 72.49 per cent seat factor, the total revenue of the Premier Service stood at Rs 1.39 billion as against the total direct operating cost of Rs 2.1 billion. The break-up of total direct operating cost revealed that the national flag carrier has spent Rs 442.35 million for fuel, Rs 59.184 million on landing and parking while Rs 145.906 million was paid on account of over flying.
This service, which was inaugurated by Prime Minister on Independence Day last year, was kicked off with claims that it would make turnaround of the national airline and termed it as stepping stone to regain PIA's lost glory. With high expectations from this service, the PIA management also made plans to compete with the other five-star and four-star airlines but the financial position of the service is depicting other side of the picture, which will not only unsatisfactory for the stakeholders but also dispirit the management.
There were six weekly premier service flights to London, three each from Islamabad and Lahore.
The aircraft were equipped with LCD screens and in-flight entertainment with 250 channels on offer along with flat bed service for business-class passengers. The passenger meals and supplies cost Rs 47.104 million to the airline.
Moreover, the PIA has expended Rs 10.02 million on a complimentary limousine service given upon the arrival of its Premier Service business-class passengers at Heathrow Airport.
The PIA management has paid over Rs 1.29 billion as rent of aircraft taken on wet lease (US$8100 per hour for guaranteed hours). Similarly, the crew layover cost for this service was Rs 36.21 million while the airline has paid Rs 22.64 million on account of cabin crew salary.
When contacted, PIA spokesperson referred to earlier statement issued last month in which the airline stated that this was a new service and like any new business venture it would take time to become profitable.
It said that PIA Premier had also played a key role in PIA's regaining its market share both internationally as well as domestically, which increased by 22 per cent on domestic flights and 3 per cent on international sectors during the current year.
The airline further said that they had received excellent feedback on all aspects of service of PIA Premier and added that PIA had forced to obtain aircraft on wet lease for this service due to lack of trained pilots and crew.
Comments
Comments are closed for this article.