ISLAMABAD: The national flag-carrier plans to induct 16 new aircrafts, lay off over 4,000 non-essential employees and double its revenue though aggressive marketing in the next five years.
Under a five-year strategic programme, the PIA plans to acquire an Enterprise Resources Planning (ERP) system and implement it across the organisation to streamline business processes, strengthen controls and introduce financial discipline.
An ERP is an integrated computer-based application used to manage internal and external resources including tangible assets, financial resources, materials and human resources.
Under the programme, a sound system of internal controls will be established. The management is set to have a zero-tolerance policy for fraud and irregularities.
The human resource systems will be changed to reward merit and performance and punish dishonesty and inefficiency. A set of strategies will be implemented to turn around operations and make PIA a sustainable and profitable entity.
Growth in revenue will be achieved through induction of new aircraft and expansion of the existing network.
The airline also plans to pass on the increase in fuel prices to customers as it believes that the rapid escalation of airline expenditure in the recent past is mainly due to an unprecedented increase in fuel prices.
The average age of the fleet will be reduced to cut costs and increase efficiency.
Realising that retention of ageing 747 aircraft means continued increase in maintenance cost, the old aircraft will be phased out. Replacing the ageing 737 aircraft is a priority while the A310 aircraft will be replaced as and when financial resources allow investment.
The 737NG or A320 are being considered as replacement. ATRs (short-haul European aircraft) will be acquired to increase frequency and capacity on socio-economic routes. It is planned to retain all types of 777 and ATRs in the fleet beyond 2014.
During Haj season one 777 will be acquired on wet lease in each year from 2012 to 2014 when an A310 is also planned to be inducted into the fleet.
Operational restructuring and human resource rationalisation is also part of the survival and turnaround plan as overstaffing is one of the PIA’s main problems which involves significant costs, clogs communications channels, diverts management’s attention from key airline issues and makes job responsibilities more obscure.
It also de-motivates workers by hindering career advancement of capable employees.
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