Precision Air impacted by aircraft engine issues in FY2016, outlines ongoing focus areas

Precision Air attributed (Aug-2016) a 17% year-on-year decrease in passenger numbers and a 15% drop in RPKs in FY2015/16 partly to reduced operations caused by aircraft engine problems, which led to frequency reductions on key routes and suspension of some routes, and to subdued demand due to elections and a subsequent Government ban on travel. The carrier will focus on improving profitability and liquidity by increasing revenue and maintaining costs at reasonable levels. Key focus areas include:

• Stabilisation of operations: Operate a minimum of six aircraft to enhance operational reliability;
• Increase frequencies in niche markets, review and improve product and focus on niche markets;
• Selectively increase fares depending on demand;
• Focus on cost control at all levels;
• Expand distribution to emphasise cheaper alternatives, including online platforms and direct access to corporate and non-IATA agents;
• Staff rationalisation to enhance productivity in line with operational fleet, review processes and evaluate jobs to increase productivity;
• Aggressively pursue alternative revenue streams including charter, cargo, third part handling and maintenance;
• Engage creditors to agree on payment plans based on the company's payment ability in line with projected cash flows. [more - original PR]