The black hole of PIA
If there was a competition for Worst Job in the World then management of PIA would stand a good chance of winning it
PHOTO: REUTERS
If there was a competition for the Worst Job in the World then the management of Pakistan International Airlines (PIA) would stand a good chance of winning it. Whoever lands this most toxic of chalices inherits all the ills and mistakes of their predecessors, and the current PIA chief, Bernd Hildenbrand, must on that basis deserve a modicum of our sympathies. He was appearing before a Senate committee on Wednesday 4th January and what he had to say almost beggars the imagination. There are now accumulated liabilities of over Rs300 billion to which is being added additional losses of another Rs5.6 billion every month — Rs67.2 billion annually. Currently the airline is earning about Rs7.5 billion a month but its outgoings are Rs13.14 billion, a sum that is never going to have a happy addition.
A breakdown of the losses reveals that a significant proportion of the monthly deficit is down to debt servicing, with Rs4.4 billion going to interest repayments. The senators examining the airline management were irritated that they had not been provided with the report and information they had asked for at a previous hearing and wondering aloud what was being done to turn the airline around. There was little that Mr Hildenbrand could offer by way of defence other than saying that 2016 had been a better year for PIA and that passenger numbers had increased. He also put his finger on why it was that matters had reached this parlous state and blamed successive government’s policies over many years. Specifically he mentioned the ‘open skies’ policy that gave an edge to the likes of Emirates, Etihad, Oman Air and others over PIA that had an aging fleet whilst its competitors had both better aircraft and crew. Questions were also raised about the competency requirements for membership of the board of management of the airline.
Yet again the national flag carrier was exposed to what amounted to ridicule, and its management was unable to satisfy even the most basic of scrutiny without falling short. And the chances of change? Less than zero.
Published in The Express Tribune, January 6th, 2017.
A breakdown of the losses reveals that a significant proportion of the monthly deficit is down to debt servicing, with Rs4.4 billion going to interest repayments. The senators examining the airline management were irritated that they had not been provided with the report and information they had asked for at a previous hearing and wondering aloud what was being done to turn the airline around. There was little that Mr Hildenbrand could offer by way of defence other than saying that 2016 had been a better year for PIA and that passenger numbers had increased. He also put his finger on why it was that matters had reached this parlous state and blamed successive government’s policies over many years. Specifically he mentioned the ‘open skies’ policy that gave an edge to the likes of Emirates, Etihad, Oman Air and others over PIA that had an aging fleet whilst its competitors had both better aircraft and crew. Questions were also raised about the competency requirements for membership of the board of management of the airline.
Yet again the national flag carrier was exposed to what amounted to ridicule, and its management was unable to satisfy even the most basic of scrutiny without falling short. And the chances of change? Less than zero.
Published in The Express Tribune, January 6th, 2017.