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Equity Support
from GoP
As reported earlier, the Corporation
continues with the restructuring plan
during 2004. The GoP continued to
support the restructuring initiatives and
plans of PIA through various measures.
The financing cost on TFCs is being
reimbursed by Government of
Pakistan, and the reimbursed
proceeds are being used to issue
additional shares to the GoP as per
the financial restructuring package
approved in year 2001. During
2004, Government of Pakistan
injected Rs. 1.449 billion towards
16 PIA Annual Report 2004
reimbursement of the mark up on
TFCs and restructured rupee debt.
The Government of Pakistan had also
provided additional US$ 150 million
equity commitment to finance the fleet
induction to be disbursed over three
years. As part of this fleet renewal
support, the GoP provided US$ 30
million (Rs. 1.77 billion) and US$ 60
million (Rs. 3.48 billion) being the first
and second tranche as cash equity
during 2002 and 2003 respectively
to facilitate acquisition of Boeing
777-200ER aircraft.
The equity injection of US$ 60 million
(Rs. 3.57 billion), being the third
tranche of the fleet induction
commitment of US$ 150 million by
GoP was also received during 2004.
As a result, the GoP has contributed a total
of Rs. 5.01 billion in equity in FY 2004 which
is reflected in the increased paid up capital.
PIA Engineering
Part-145 Certification
The Airline had initiated the project for
International Certification from European
Aviation Safety Agency (EASA). During
2002 and 2003 all the inventory
procedures, training needs, upgradation
of maintenance facilities/equipments
required to support the fleet upgrade
program was completed. Further the
quality manual “Maintenance Organization
Exposition (MOE)” was prepared and
approved by JAA. Later in January 2004
EASA deputed Civil Aviation France
(GSAC) to conduct the audit of all the
divisions of PIA Engineering and on the
basis of the findings, the EASA
recommended grant of International
Certification PART – 145 to PIA
Engineering in March, 2004.
All eight Divisions of PIA Engineering and
Maintenance Department including
logistics have been conferred the Part-
145 Certification by European Aviation
Safety Agency EASA, the combined
Aviation Authority of European Union
Countries. PIA is the only airline in the
region where all its Divisions are Part-145
certified and this certification for all its
eight divisions was done simultaneously.
This is a major step forward in the
recognition of the high maintenance
standards of PIA engineering and
confirming its standing at par with any
agency in Europe.
Besides being a source of international
acclaim, Part-145 approval will prove a
catalyst in turning PIA Engineering into a
revenue center for the national carrier. PIA
Engineering has already signed outside
party work agreements with different
airlines – Fly Air, Logistic Air and Expo
Lanka and MNG. After the construction
17
of the proposed new hangar the revenues
from engineering work are expected to
get a big boost.
Training
PIA’s Engineering Department launched
an intensive training program and 600
engineering personnel were trained for
B-777/A-310 aircraft.
New livery & uniform
In order to give PIA a new image as a
progressive and dynamic airline, new
cabin crew uniforms and aircraft livery
were launched in February, 2004.
PIA Call Center
In 2002, PIA set up a call center located
in Karachi connected to 8 major cities
nationwide via UAN 111-786-786.
During 2004, international toll free service
has been made available to customers in
USA, Canada, UK, France, UAE and Saudi
Arabia and more countries are to be
connected to the call center in the near
future, resulting in improved service for
the convenience of the passengers.
The call center offers following
services:
• Reservations
• Flight Schedule
• Flight Availability
• Awards+Plus
• Complaint Management System
• Pre-reserved Seating
• Queue Management
• SMS Services
National Distribution
Company
A national distribution company as a joint
venture between PIA and Singapore
based Abacus International has been
formed in Pakistan to:
• Provide state of the art system to
agents
• Enhance market share through wider
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