Inventory Management of PIA

Stores and Spares – 2001

Due to size and site of stores and spares, the corporation has not applied any
physical verification of its stores and spares inventory. The Corporation is within the
process of
revamping its stores and plans to introduce a good perpetual inventory count system.
The revamping exercise includes identification of surplus, unusable and slow moving
spares
and consumables. The difference between the subsidiary and leger balances will
also be reconciled after the completion of the revamping exercise.
It includes of inventory of Rs. 119.04 million (2000: Rs. 75.16 million) held with
foreign third
party for repairing and overhauling of aircraft engines.
Stores and Spares – 2002
The Corporation is within the process of revamping its stores and aircraft spares and
establishing
an effective inventory count system. The revamping exercise which is current also
includes identification of surplus, usable and slow moving items and expected to be
completed during the year ending December 31, 2003. Management has also initiated
steps
for engaging consultants for disposal of the excess and slow moving inventory
identified as
a results of the aforementioned exercise. Further, consistent with the aircraft fleet
replacement
plan the Corporation intends to retire certain aircrafts during the years 2003 to 2011.
Based on the terminate plan for Fokker F-27 aircraft, under the principles of
procedure, the
Stores and Spares – 2003
The Corporation had undertaken revamping of its aircraft spares and therefore the
exercise was completed during the year. Following revamping exercise, a
programmed cyclic count of the - 19 -Aircraft spares have begun, and nearly 40%
of the gross volume has already started revamped spares has been counted up to
February 29, 2004. The cyclic count system has been designed during a manner
whereby all the things shall be counted once during a year. Further ,.The Company
plans to carry out an exercise to complete the documentation of floating capital
spares of an aggregate cost of roughly Rs. 3.2 billion and to interchange its old
inventory accounting system.
Stores and Spares – 2004
The Corporation had undertaken revamping of its aircraft spares and therefore the
exercise was completed last year. Following completion of revamping exercise, a
programmed cyclic count of the aircraft spares is now in practice. The cyclic
count system has been designed in a manner whereby all the things shall be
counted once during a year. Following completion of the revamping of the
aircraft spares, items of an aggregate net book value of Rs. 1,241.49 million were
considered as surplus and are stated at their expected net realizable value of Rs.
258.56 million. Up to day, 2003 provision against slow moving aircraft spares
were being made following a scientific approach whereby the value of aircraft
spares at the top of every.The benefit shall be paid as a allowance for slow
moving spares on a prospective basis for the remaining projected average useful
life of the respective category of aircraft.and per expected usage of spares
referring to certain aircraft. Effective January 01, 2004, the availability against
slow moving aircraft spares were being made during a manner whereby the value
of aircraft spares at the top of every year shall be charged to the profit as
provision for slow moving spares on a retrospective basis during a manner that
the availability made shall be in proportion to the initially estimated average
useful lives of the relevant category of the aircraft attained up to the record date.
Had there been no change within the estimate as stated above, the availability
made during the year against slow moving stores and spares would are over by
Rs. 1,235 million with a - 20 - corresponding effect on the profits before tax for
the year ended day, 2004. The useful lives of the aircraft were ascertained to be
lower of the useful lives stated within the valuation report of Airclaims Limited –
UK and therefore the reconciliation of the differences between inventory
management system and book of account commenced during the year is in
progress as at day, 2004. The management is considering to implement new
inventory management system to interchange its old system. It includes of
inventory of Rs. 26.92 million (2003: Rs. 41.42 million) held with foreign third
party for repairing and overhauling of engine
Stores and Spares – 2005
The Corporation had undertaken revamping of its aircraft spares and also the
exercise was completed during the year ended day, 2003. Following completion
of revamping exercise, a programmed cyclic count of the aircraft spares is now in
practice. The cyclic count system has been designed during a manner whereby all
the things shall be counted once during a year. The provision against slow moving
aircraft spares were being made during a manner whereby the value of aircraft
spares at the top of every year shall be charged to the profit as provision for slow
moving spares on a retrospective basis during a manner that the supply .
This shall be rendered in proportion to the initially projected average useful life
of the concerned person.category of the aircraft attained up to the record date.
The useful lives of the aircraft were ascertained to be lower of the useful lives
stated within the valuation report of Airclaims Limited – UK and also the useful
lives in step with the revised fleet replacement plan approved by the Board of
Directors. It includes of inventory of nil (2004: Rs. 26.92 million) held with
foreign third party for repairing and overhauling of aircraft engines. This
represents inventory held with foreign third party sale within the open market.
Emirates Inventory Management

Good inventory management enables us to reach and sometimes exceed the

standards of our internal customers about product availability, while at the same
time reducing costs and making it easily available to global customers, especially
in outstation locations. Driven by our logistics engines, inventory is stored and
distributed through our network of stores and distribution centers. General
Distribution Centre: Office supplies, airline stationery, gifts, gifts and
promotional pieces Personnel distribution center: staff uniforms and personnel
accessories P&L Technical center: spare parts and fuel for all ground support
equipment In-flight facilities Stores: all goods used on board aircraft including
paper and plastic goods, wine and selected food Dubai Airshow 2013 – Emirates
Airline has signed an agreement to introduce a formal trial of the Airbus
Controlled Inventory (AMI) operation, which is expected to guide further
implementation.The AMI service, which underlines Airbus’ innovative strategy in
offering customized services supported latest industry standards, continuously
ensures the automated replenishment of high-usage and non-repairable parts at the
customer’s facilities.Andrew Hoad, Senior Vice President, Technical Support at
Emirates, said: "Emirates is thought to be a world-class airline selling world-class
goods around the globe, and we foresee an Airbus-managed inventory service will
help us to still keep our aircraft in pristine condition whilst reducing our costs at
the identical time “Didier Lux, Chief Executive Officer of Customer Support at
Airbus, said: "Airbus provides our customers with the best possible maintenance
and supply chain solutions, and a first-rate example of this can be given by
Airbus Managed Inventory – a tailored and very cost-effective service.The
aircraft industry needs the utmost attention to detail in logistics and inventory,
and AMI has brought this to a replacement level.management solution supports
Airbus customers to scale back their inventory holding costs. By capturing
material consumption information in real-time and automatically triggering
replenishment orders within the agreed inventory levels, the service guarantees
high on-shelf part availability while decreasing the inventory stock level.Airbus is
the world's largest aircraft manufacturer offering the most new, revolutionary and
reliable passenger airline family on the market, with a range of between 100 and
500 seats.Airbus is an EADS company.