Friday, June 26, 2009

Pakistan International Airlines (PIA)

PIA of Pakistan has officially disclosed to the media at the Paris Air Show that it is in the final stages of placing a major order worth US$ 2 billion at list prices for 27 Airbus A 320s or Boeing 737NGs. PK's Chairman said that he moves to finalize the order by the end of 09 and said that the order will consist of 9 firm aircraft to be ordered directly from the manufacturerer + 9 from leasing firms + 9 options. He said that this order will be a direct replacement for PIA's ageing fleet of 6 Boeing 737-300s as well as some of its Airbus A 310-300s.


So basically 18 more aircraft max are to be inducted which technically means a one to one replacement of PIA's fleet of 12 A 310s + 6 B 737-300s.

Now if this order is meant to be a direct one on one replacement for PK's entire fleet of A 310s and B 733s, then it is going to be a big costly mistake as PIA need a medium density 230 seater plane for European, Saudia, Far East and UAE routes flown from Pakistan as a narrow body aircraft are too small for all these routes + cannot fly some of them nonstop from Pakistan.

If I was in charge of this order, I would give it to Airbus in the following manner:

4 A 319s for low density domestic + international flights to MCT, DOH, BAH, Iran, DMM and AUH from Pakistan.

5 A 332s for PAK-UAE, PEW-RUH/JED, PAK-SE Asia, PAK-EU/GLA. The A 332 is needed for PAK-UAE/SE Asia and PEW-Saudi routes because of the extra revenue that can be generated with 12 tonnes of cargo being carried in the belly. This is why PIA kept the AB4s in its fleet for so long specifically for PAK-UAE/Saudi routes due to the extra revenue that this aircraft could bring in with cargo carried in its belly.

2 A 333s for LHE/ISB-JED/RUH routes exclusively as this aircraft type is an ideal one to use on high density medium haul flights.

7 A 321s for PEW-RUH, KHI-BOM, KHI-DAC, KHI-KTM, ISB-BKK, LHE-BKK, KHI-DEL, PEW-AUH, PEW-KWI, ISB-KWI, ISB-DMM, LHE-KWI, LHE-DMM, LHE-MCT, PEW-MCT + high density domestic routes from KHI to PEW/ISB/LHE vice versa.

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