Good money thrown after bad
PIA board should be revamped, professional people with strong background in the aviation industry should be appointed
Once again the PIA management has secured the Rs17 billion bailout package from its majority shareholder by playing the threat of grounding the fleet. The ECC’s decision is truly another dose of oxygen, which will not save the national flag carrier.
Giving quarterly dole-outs to the ailing airlines is not unique. What is surprising is that like its predecessor, the PTI government has also thrown good money after bad. This has come from a Prime Minister who has promised to restructure the loss-making enterprises. But Imran Khan as Minister in charge of the Aviation Division has chosen to sign off the Rs17 billion cheque without first approving a restructuring plan.
In addition to Rs17 billion bailout package, the Finance Ministry has set aside Rs18 billion to pay interests on past loans of the PIA in this fiscal year alone. It seems that the haemorrhaging would not stop in near future since the government has ignored to take fundamental steps to reform the ailing airlines.
There is a need to implement a six-point Action Plan, which has been recommended by the Finance Ministry to at least install a competent team that can cruise the airlines out of severe turbulences that have the currents to bring the national flag carrier down any time.
Prime Minister Imran Khan has appointed Air Marshal Arshad Malik the CEO of the PIA, which is contrary to the PTI’s stance to appoint professionals to head the state-owned enterprises. The Air Marshal does not have the expertise to run a commercial airline.
The board of PIA should be revamped and professional people with strong background in the aviation industry should be appointed. Bankers, retired bureaucrats and industrialists cannot revive the airlines.
The future money should be linked with a debt management strategy and there is also a need to increase revenues. We urge the authorities to prepare and implement a short-to long-term Action Plan to keep the airlines in the skies.
Published in The Express Tribune, November 14th, 2018.
Giving quarterly dole-outs to the ailing airlines is not unique. What is surprising is that like its predecessor, the PTI government has also thrown good money after bad. This has come from a Prime Minister who has promised to restructure the loss-making enterprises. But Imran Khan as Minister in charge of the Aviation Division has chosen to sign off the Rs17 billion cheque without first approving a restructuring plan.
In addition to Rs17 billion bailout package, the Finance Ministry has set aside Rs18 billion to pay interests on past loans of the PIA in this fiscal year alone. It seems that the haemorrhaging would not stop in near future since the government has ignored to take fundamental steps to reform the ailing airlines.
There is a need to implement a six-point Action Plan, which has been recommended by the Finance Ministry to at least install a competent team that can cruise the airlines out of severe turbulences that have the currents to bring the national flag carrier down any time.
Prime Minister Imran Khan has appointed Air Marshal Arshad Malik the CEO of the PIA, which is contrary to the PTI’s stance to appoint professionals to head the state-owned enterprises. The Air Marshal does not have the expertise to run a commercial airline.
The board of PIA should be revamped and professional people with strong background in the aviation industry should be appointed. Bankers, retired bureaucrats and industrialists cannot revive the airlines.
The future money should be linked with a debt management strategy and there is also a need to increase revenues. We urge the authorities to prepare and implement a short-to long-term Action Plan to keep the airlines in the skies.
Published in The Express Tribune, November 14th, 2018.