LAHORE - The acquisition of aircraft is being done in a transparent manner and the bids are being opened in front of media persons as directed by Prime Minister of Pakistan Mian Muhammad Nawaz Sharif. This was stated by Secretary Aviation & Chairman PIA, Muhammad Ali Gardezi while talking to media persons before the opening of bids for 10 narrow-body aircraft held at PIA head office.

Bids were received and opened in the presence of media persons; this was the first time in the history of PIA that bids were opened in the presence of media persons to keep the process transparent. Managing Director PIA, Muhammad Juniad Yunus, Director Corporate Planning PIA, Shahnawaz Rehman, Director Engineering, Saminuddin Naqvi, Director Flight Operations, Captain Qasim Hayat, PIA Board member Aslam Khalique and other PIA officials were present during the opening of the bids. The bid parties included M/s Qatar Aviation Lease Company and M/s KL Aero Parts. The aircraft offered include Airbus A320 aircraft and Boeing 737-800 aircraft. The bidders have committed delivery by last week of July 2014.

The bid offer of M/s Qatar Aviation Lease Company included eight A320 aircraft, four aircrafts with year of manufacturing as 2011 and four with year of manufacturing as 2012. The second bid was of M/s KL Aero Parts for ten A320 and ten 737-800 aircraft with year of manufacturing 2014.

The bids will be evaluated within three to four days and posted on PPRA website. After conducting evaluation process within next 10 days, the recommendations will be forwarded to PIA Board of Directors for approval followed by issuance of letter of intent to the selected bidder.  The financing of these aircraft will be done by PIA’s own resources and partially with the help of the government.

Chairman PIA said that the aircraft acquisition was approved by ECC and PIA Board of Directors. He said that as part of PIA’s revival plan, PIA is acquiring latest model fuel-efficient aircraft in line with the vision and guidance of Special Assistant to the Prime Minister on Aviation Shujaat Azeem.  With the induction of fuel-efficient narrow-body new generation aircraft, PIA will be in a better position to improve its sales and provide better service to its customers. The airline is also emphasising on cost reduction.  He said that PIA sale is improving and alone in the month of January 2014 PIA’s revenue increased to 9.5 billion from 7.3 billion of October 2013. Citing an example of fuel saving, he said that fuel efficient aircraft acquired on damp lease have resulted in fuel cost savings as an A310 aircraft consumes around 5,500 kg fuel per hour against 2,200 kg per hour of Boeing 737-800. 

With the selection of aircraft Boeing 737-800 or Airbus A320 PIA will save significantly in fuel as well as maintenance costs. Chairman PIA said that in future PIA will be having three types of aircraft i.e. A320/ B737-800, B777 and ATR aircraft. The next bid for four wide body and four turbo prop will be opened on March 17, 2014. PIA had placed advertisement for dry lease of ten narrow body aircraft published in newspapers on February 5, 2014 and was also placed on PIA and PPRA websites.