Crippling losses: PIA loses money but continues to add workforce
Over the past three years 2,171 people have been recruited in the Pakistan International Airlines (PIA), which has suffered losses worth Rs100 billion in the same time period.
The number of people hired by the incumbent government is the highest in the history of the national flag carrier, with most people, 1,179, having been employed in 2010, according to a 44-page report submitted by the defence ministry to the Senate.
“PIA’s problem needs rightsizing,” wrote Defence Minister Ahmed Mukhtar in his reply to the Senate on some questions raised by lawmakers on the airline.
“Reduction in non-operational areas will be done (through) normal attrition,” Mukhtar said.
However, the minister said there will be no reduction of manpower in operational staff, such as pilots, aircraft engineers and specialised professionals.
PIA recruited 237 people in 2011, 1,179 in 2010, while 684 appointments were made in 2009 and 56 in 2008, the reply said.
The document said that around 1,854 regular appointments were made, while 317 employees were recruited on a contract basis from 2008 to July 2011.
As many as 870 people were recruited as human resources assistants, junior instructors, cargo assistants and reserve ticket assistants. Around 357 air hostesses and 75 cadet pilots were also recruited in the airline in this time.
The defence minister submitted the reply in response to multiple questions asked by Senators Dr Ismail Buledi, Col Tahir Mashhadi and Abdul Nabi Bangash.
In response to whether the number of people appointed or promoted in PIA was in violation of rules during the tenure of former managing director Aijaz Haroon, Mukhtar said: “Twelve people from pay group-II to pay group-X were inducted in PIA by dispensing the requirement of advertisement and qualification in violation of rules in vogue.”
However, these appointments were authenticated by the PIAC Board, he added.
According to the defence ministry, around 4,407 of 8,801 officers were also promoted in the airline.
When asked about the measures taken for improving the airlines’ condition, the minister said that the government is reviewing the fleet loans. It is also working on capital financing cost and a plan is being made to reduce the interest rate, he added.
Both spokespersons from PIA and the Ministry of Defence said: “What the defence minister has said is fact.”
“I have serious reservations over a large number of appointments in the national flag carrier. I will raise the issue in the Upper House of the Parliament,” said Senator Tahir Mashhadi.
Published in The Express Tribune, October 15th, 2011.
COMMENTS (16)
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PPP has karishma wherever they put hands drowned it. From prime minister to local body administrators all are culprits. Even then reinstated more then 600 people from PPP last government with full benefits. So what you expect from PIA. I believe local trucking company doing better business then PIA. Don't worry all the government runs institutions are like that example are railways, banking sectors, steel mills, etc. The biggest almia the same people will relect again and Pakistani qoom will give them vote, woh bhi fakhar say!
@Maria: If people stop flying with PIA the losses would mount!
870 people were recruited as human resources assistants? and we don't sense the problem?
@Cautious: The problem with PIA is that expatriate Pakistanis will prefer to take PIA over any airline even when it is more expensive. In North America, it is always full and no matter how many flights they announce, people rush to take the PIA flight. Why should PIA improve when they enjoy such blind support - they will continue to lose money unless people stop taking PIA and show that they are fed up with the airlines losing tax payers money.
Right sizing is the only way out!!
They are employing mostly people who are not even good at their jobs, and due to negligence of the non techs a lot of issues arrive and the higher management should think about acquiring more aircrafts rather than employing incompetent people.
Much has been said & written about PIA,so much so that it has become favourite topic of drawing rooms gossip & public debate.The airline can be turned around within six months provided there is a will. One may consider as given ut-infra; a) Right sizing should be undertaken without any further loss of time. b)All political appointees inducted without vacancies & basic qualifications must go home . c)Marketing department which is the show window & earning hand of the airline should be revamped & competent people, if any available now, should be brought forward. d)If there is no senior or competent officer available ( am sure there is none left )for this important position of director marketing,hire the services of an out sider from the industry on merit. e)All directors,general managers & managers in the Head Office & abroad be re- evaluated & right people for the right positions without political favour be placed strictly on the basis of honesty, merit,professional competency & seniority. f)All those officers/ staff whose productivity is blow target be given 3 months notice & if they do not improve be removed.Foreign postings are not the right of officers/staff,they must work hard to produce revenue for air line. g)Department like Precision Engineering be given back to Govt. who may place it under POF or KAMRA,why PIA should bear the cost of its establishment & research, which runs into billions PA. Much more can written & suggested,but paucity of space & time
@Supressed, Opressed, Depressed: i love your nick......well done.
this democracy is worse than dictatorship. There were no politcl flags on pia s commercial buildings during Mushs era.
Rs. 100 billion!!!!??? How much the country could have improved if only PIA wasn't corrupt.
It is sad but true, the ratio of employees when compared to a successfull airline is 22 to 1
870 people as HR assistant....
It is the Pakistani Public thats footing the bill of PIA losses of Rs 100 Bn over the last 3 years
When the country is facing 20 hour load shedding and countless flood victims have no place to stay.................is there no one in Pakistan that can see what needs to be done?
The Defence Minister instead of running the Airforce runs the Airlines!
And runs it so well!
While PIA has grounded 10 aircrafts out of total of 35 , what is this large number of staff doing? I think they are all taking part in public demonstrations......Amerreeka go home!