It was a decision years in the making, but Pakistan International Airlines (PIA) has taken action over its fleet renewal.
The long-troubled state-owned carrier has signed a letter of intent with Hong Kong's Cathay Pacific Airways to lease all six of its Boeing 747-300s, to replace ageing 747-200s. If all goes well, the aircraft will be taken from 1 May, on two-year operating leases with options to convert to 10-year finance leases.
PIA says the leases are interim ones, for use until new aircraft can be ordered and delivered. The airline says it intends to decide on new aircraft purchases by September and that the Airbus A330/ A340 and Boeing 747 and 777 are under consideration.
It says it is also looking at replacing its 13 Fokker F27 turboprops and negotiating with leasing companies and airlines to find an interim solution similar to the Cathay deal. The ATR 72 and Bombardier Dash 8 are being assessed.
PIA, however, has broken numerous promises on a fleet renewal over the past two years. Generally, political problems, a lack of cash and general bureaucracy have been to blame. "Nobody wants to make a decision because they fear they'll lose their job if they do. That's the biggest problem with this airline, apart from corruption," says one senior PIA captain.
This time could be different, however, as real change is said to be taking place within the airline, which is overwhelmingly overstaffed and in desperate need of a revamp.
PIA has outsourced all its information technology functions to Sabre with which it also signed a three-year consulting contract late last year aimed at making the carrier profitable and much leaner.
The airline also claims to have recently "returned to profit" and says it is looking at joining a multilateral alliance. It says it is talking with at least one major alliance grouping, with a decision to be taken on alliance membership by the third quarter of this year.
In preparation, a new frequent-flier programme has been unveiled and Sabre is upgrading the computer reservations system.
PIA's decision to lease aircraft from Cathay is a slight blow to Singapore Airlines, which has taken six of its 747-300s out of service with no firm buyers or lessees yet in place. Two other -300s, on lease to Ansett Australia are due to be returned this year.
Source: Airline Business
