Cash-strapped Pakistan International Airlines (PIA) on Tuesday sacked Deputy Managing Director Salim Sayani after succumbing to pressure from parliamentarians wary of his high perks, officials said.
Sayani’s removal comes in the wake of criticism levelled by the National Assembly’s Standing Committee on Defence, which saw his monthly pay as a burden on the already loss-incurring national carrier. His exit also comes just weeks after the appointment of former Air Chief Marshal Rao Qamar Suleman as the new MD.
Sayani’s monthly salary at PIA was said to be an exorbitant $50,000 (Rs4.7 million). While PIA’s spokesman refused to confirm that Sayani earned more than the carrier’s managing director, disgruntled employees have been leaking documents to the media regarding his pay and the perks. The highest paid official in the airline was, however, already getting a sizeable monetary compensation for his services before joining PIA. His highly-paid services were sought to help turn the carrier around. A former American Airlines executive, Sayani was tasked with revamping PIA’s Maintenance and Repair Overall (MRO) department. His job was to woo regional airlines into getting their aircraft fixed at PIA’s MRO unit.
His experience was, however, unable to turn the airline’s fortune around.
The airline failed to bring in any substantial business since his appointment in July 2009, which greatly irked members of the standing committee.
One of Sayani’s close aides blames the government for its failure in investing money in the maintenance department. “It will not be able to attract any business if there are no tools and machinery to repair the planes. And we have nothing.”
Sayani was hired during the tenure of former managing director Aijaz Haroon, who himself was mired in a number of controversies. Haroon was shown the door after unions went on an unprecedented boycott against his plan to enter into a codeshare agreement with a Turkish carrier. Codesharing is a route-sharing mechanism which allows for single bookings across multiple airlines.
Before his appointment, Sayani was interviewed by then finance minister Shaukat Tarin and defence minister Ahmed Mukhtar. He was also a part of the negotiating team which clinched a deal for the purchase of five Boeing 777 aircraft on behalf of PIA. The deal was said to be a landmark achievement as the planes were purchased without government guarantees despite the company’s weak financial standing.
Successive CEOs of the carrier, from Tariq Kirmani and Zafar Ahmed Khan to Aijaz Haroon, have all complained about too much political interference in the airline’s affairs. Almost all of them wanted to lay off over 20,000 employees of the PIA, which boasts of one of the highest workers-to-plane ratio. The company has gone through two dozen general managers, 12 board directors and two managing directors in the past two years.
Published in The Express Tribune, July 11th, 2012.
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@John Baig: Hang in there. I donot argue in a Blog or even write Comments unless I have my Facts and / or have first hand knowledge of a Situation. If you consider Salim Sayani a Genius, you really need Serious Help. Rewind back to the years when you and him owned a Car repair Garage, in the Forth Worth, Texas area. How come it failed ? So if a person cannot Run or Manage a Car Repair Garage ...... how can he Run and manage a Airline like PIA. Salim Sayani was NO Manager, No Engineer, No Executive. He was in a Position of Engineer. Any way enough said about the Facts. I agree with TheEngineer's Post. Loosing EASA or Part 145 Certification is a serious downfall. Obviously, there probably were some Tall Promises made of bringing some MRO work in to PIA ..... and since the Tall Promises turned out empty, now the Leadership in PIA, The Pakistan Government and also the TIP realized. This was a $50,000 Free Ride.
@John Baig: Today I got a call from a Old Time Co-Worker and Colleague. He directed me to Read this Article by Reporter Mr. Saad Hasan, and suggested I read your Post, just so I can write the Facts and Point the Truth to the People of Pakistan, Pakistan Government and also Transparency International Pakistan [TIP]. John Baig [ AKA Arif Baig ] you wrote "I am working for American Airlines and have with Mr. Sayani for his entire tenure." Facts are your Employment date with American Airlines is October 9, 1990. Many years after Salim Sayani's Employment date. So what you wrote is NOT the Facts and Nor it is the Truth. Having said that, you could NOT have worked with Salim Sayani as you actually worked in the Seat Shop, which requires NO Technical Knowledge, No Skills and absolutely very little or No Mechanical Ability. A person out of High School can do the Job Functions that you do/did at the AA - AFW Maintenance Base. On the Aircraft Docks, you worked on just installing and removing Fairing Panels, Interior Panels. Having clarified your work ability and job skills, sure some one with your skills, ability and knowledge, would make Salim Sayani a Genius or Ustaad as they would call it in Urdu. Speaking about what you wrote further ...... "Do you notice that no body blame him for taking bribes or fraud or anything else." Now, Salim Sayani will not do the Dirty Work. He has his Close Aides, Subordinates and other people in PIA, that work under him do the Dirty Work. So John Baig [AKA Arfi Baig] don't worry, now the People and Government of Pakistan plus TIP too will know what the Facts are. Further more let me link you to this News Paper Article, then you can judge for yourself about Scams, Bribes, Kickbacks etc. http://paktribune.com/news/500m-kickbacks-feared-in-PIA-777-deal-247808.html The Article says .... Referring to a complaint the TIP received, Gillani said that it was reported that Saleem Sayani, the Deputy Managing Director of the PIA in a meeting held last week of January 2012, had informed about the PIA plans to procure five widebodied new Boeing ER777-300, at an estimated cost of around US$200 million each. Gillani says he does not know how the price shot up to US$300 million for each plane." John Baig, dont worry the Truth will come out following an Investigation on how the Price of the Airplane Shot Up by $100 Million per Plane. Until then Panel On - Panel Off.
@ John Baig wow you must luv that person a lot. No need to state such string of praises. Buttering Mr Sayani up is no longer fruitful. If you had any aspiration of dipping your fingers in that cookie jar then sorry to say cow milk has dried up. My information is from reliable sources & I have no reason to question that. Mr sayani may be of a high moral character & may be 2000 x better than me. I am sure in your mind he is the legend, but he is no MANAGER. PIA needed a manager, instead they hired an opportunist. If he was so genious then why he is on the street now. I don't have to be genious to understand why he stuck around; he milked the cow as long as he could.
@Nazir Khan: @Texan: You 2 have noted some Interesting and Valid Points. 1. Nazir Khan. In the Corporate World sometimes Managers would rather see a Bad Employee just Go away. In this case it appears that they were Glad to see Salim Sayani Go to Marketing. It is a very Common Practice in certain Corporate Cultures. 2. Texan, the Point that you made is worth a Million Words. If PIA's EASA Part 145 has been Cancelled, then their Maintenance and Engineering Department is NOTHING. Further more, being in the Aircraft Maintenance and Engineering World for over 25 years, I know well that FAA and EASA Approvals are very Critical. Here is some Logic. PIA is owned by the Government of Pakistan. Thus PIA is owned by the People of Pakistan. If a person was Employed, Appointed to achieve Certain Goals, in this case to revive the Engineering Department of PIA and Bring In MRO work as initially Promised and that didnot happen. Then the Person Appointed for that Task didnot do his Job and is at Fault. And the People of Pakistan and the Government of Pakistan should Hold Salim Sayani Responsible. Reading the many Newspaper Articles on the Internet, there were also several PIA Airplanes Grounded during the last 2 years. That should be a reflection that the DMD Failed to do his Job. Who is at a Loss here. The Government of Pakistan and Its People. Hopefully the Leadership in PIA and also the Leadership in the Government of Pakistan will realize like Texan Said " This was a Free $50 000 USD Ride. "
@Nazir Khan: Khan sahib you will have to take birth a thousand times to be half the man mr Sayani is .... I have worked with mr Sayani my entire life and there isn't a man alive in the entire nation of pakistan that can claim to be his stature ..... He is genius and a man of very high morals other wise sir people like you wouldn't be sitting roaring in jealousy ..... Want the Best .....comes with a price tag .... How many people are breaking your door down to run anything ....... Peace out
@Texan:
Mr. Texan, It does not matter if I know Mr. Saleem Sayani for twenty or twenty five years. I know him long enough & well enough to see right through your accusations. When I responded to your comments, I was under the impression that you are ill informed and wanted to bring the facts to your kind attention. Also I wrote my complete name in addressing your response.
If you have just & concrete knowledge about the things you are accusing Mr. Sayani for then why are you hiding behind a fictitious name? What are you afraid of? Saleem spent almost three years at PIA. You could have presented your facts with proof to PIA!
It does not matter what business I am in, as that is not the point of discussion. What I am addressing here are your accusations without proof, rhyme or reasons and that also behind a factious name! Obviously you are incorrect, otherwise you should come out from behind the curtain and put charges on the table like a man or a woman. It seems like you are neither, perhaps? Respectfully speaking, bring the facts to the table with your real name or STF up.
@Anwer Chughtai: Anwer Chughtai, you have your Time Frames incorrect. You could not have known Salim Sayani for 25 years when he has left Tulsa, Oklahoma only 20 years ago. The things mentioned in my Post are NOT baseless accusations, nor are they comments of a jealous man, but the Truth and Facts. You obviously donot know Salim Sayani's Darker Side. Those Folks that have worked with him and know him in Tulsa and Fort Worth are well aware of the Darker Side. Anwer, facts are that Salim has hidden behind your Good Image for the last 20 years. You obviously donot know and are not in the Airline Industry to know the Facts that he is NOT and never will be a Qualified Individual. You are in the Brick, Stone, Mud Business so what makes you a Airline Expert in this case, PIA has been taken for a Ride, just like other unsuspecting People were taken for a Ride by Salim Sayani. In a True Business Sense, PIA will save $50,000 a month. As they say Penny saved is a penny earned. Texan
@Tariq:
Mr. Tariq,
My friend of 25 years Mr. Saleem Sayani worked for American Airlines for over twenty five years. It did not file for bankruptcy in that quarter of a century but only three year after the departure of Mr. Sayani it did! Baseless accusations without merit is what some people like your esteemed self are champions of.
@Texan: I personally know Saleem Sayani for the last 25 years. I know he is a an intelligent man.A qualified man and a man of principals. I am also personally ware of of the frustrations he he shared with me about how he was not able to implement the things he felt were needed to lead PIA out of many of its crises if not all.
I am personally aware of his capabilities in aviation industry and stand behind him as he is an honorable man,
Those who cancelled his contract have actually done him and us the friends of Saleem a favor by releasing the pressure as we were concerned about his health and well being. It is a great loss of PIA and of those responsible for running PIA.
As for your baseless accusations, they are nothing but comment of a jealous man with no substance.
Anwer Chughtai Dallas, Texas
@Political Analyst: Mr. Political Analyst .... you are way off course on this Subject. Salim Sayani never was and never will be capable of results. He was in for a Free Ride with PIA. Ask any one that worked with him at American Airlines in Tulsa and Fort Worth. Salim Sayani has actually looted hard working people of their life savings in Fort Worth and in Tulsa. As far as the credit he was taking for Turning American Airlines MRO into a 12 Million Dollar Business. It was NOT him that made the AA MRO a success. It was a Team of Individuals. He just was taking the undue credit for it. And where is this PIA MRO ? Cost Center to Profit Center .... this all Talk. No Action. Did any one from PIA Leadership check out Salm Sayani Past Track Record. A little investigation in Tulsa and Fort Worth would have saved PIA $50,000
I hope this newspaper will get the qualifications of the new MD and his pay information's out so we can judge apple to apple and how did he got the job, thru political connections, if not than he should be more qualified than Mr Sayani which I highly doubt, and if he is not as qualified as Mr Sayani why did he got the job
@Syed: I am really disappointed that you are not getting the point and you keep referring as if Mr. Sayani does not have dignity. He has worked as hard as he could. PIA is a very complex organization with deeply rooted politics and cronyism that keep any honest person from successeding. Mr. Sayani did not fail in his mission; it’s the PIA, its politics and its deeply rooted cronyism that keep patronizing corrupt political leaders. He is not symbol of disgrace but the people who refuse to change the system are. Moreover, PIA hired him and agreed to the compensations. If the management did not did not think he was worth that much, they would not have offered him the job. You seem to have a lot of knowledge of working in North America then you should be well verse in legal binding contract and if you breach the contract you are liable to pay the penalty
I think most of you worryabout the pay and we loose the sight the distruction bring by our politician , in mingling in Airline business as per Mr salim is concern I don't think PIA ever have highly educated Airline Veteran like this , its all dirty politics
@Mohammed: I am not arguing about his capabilities. What I am pointing out is the fact that people with dignity and honor do not keep going on with organizations. If you have ever worked in North American market, you would know how people rather save their honor than to become a symbol of disgrace Or if someone is unable to turnaround the organization, external pressure becomes un-bearable. Secondly, Project Manager is not considered an "executive" - please have this fact straight. executives are Directors, Sr. Directors, VP, Sr. VP and so on upward. Third, earning a US50k (this is US600,000 a year = 54000000Rs a year) a month is ridiculous considering Pakistan's battered economy. Any sane person or again "Dignified" person would consider before jumping over the post. So for how long did ths person was in PIA?
I know about PIA as well and how people are working there, people are made managers who don't have an iota of knowledge in airline business on the respective departments, Lame so Doctors are appointed in PIA who do not know how to write prescription.
Have a Good day.
Mr.Tariq- Yes american airlines is in bankrupcy but you should know the american airlines has over 700 aircrafts and over 300,000 employees. American airlines declared bankruptcy 3 years after Mr. Sayani left the airlines. American's and other major US airlines problem stem from post 911 era and higher fuel prices and declining travelling and furious competition from low cost airlines not as a result of an individual.
Sajjad Shaikh for your info, Mr. sayani did not only have a real Degree (unlike pakistani politician with fake degree) he also had 37 years of solid expereince in aviation industry.
Miss SAIMA: His appointment was solely based on his reputation, educational background and his professionalism. He completed his education in US and worked there for over 30+ years as an engineer as well as project manager until he retired from American airlines after 25 years of service. He was being paid for his expertise in his field. A single deal (for example 777 deal he negotiated) can pay for his three years of salary. He has an excellent work ethics and he is a capable administrator. PIA is our national pride and needed long awaited tender loving care and attention. He has been involved in several other projects to bring our airline to a profitability status. I am pretty sure he was not given the authority to deal with the over employment at PIA where the ratio of employees to the aircraft is one of the highest in the world. Every organization needs some time and resources to turn around, he did not have magic wand to do it overnight. Right now media is focusing only his compensation package rather than what he has done in past 3-1/2 years. If you take the survey from PIA personnel, I am pretty sure you would have a change of heart.
Mr. Sayani was hired without any influence or relation to anyone in PIA. He was hired based on his educational and professional qualification as successful engineering and project management career of over 25 years at American airlines and seven years at GE Aviation. He was hired to do a job and promised tools and means to accomplish it. Unfortunately, resources to accomplish the task were not allocated. As per the pay is concerned executives are not cheap. They are paid for their performance and they are on contract, they can be dismissed at a moments notice as Mr. Sayani was. PIA had its share of issues which is rooted deep and can not be resolved overnight. Several layers of bureaucracy can not disappear especially in Pakistan which is known for patronizing the political leaders. Mr. Sayani has an excellent work ethics and not used to cronyism being practice in Pakistan. He has been a thorn on the side of some of the long time PIA employees. That is the reason we are not successful in turning around the national carrier.
If he really capable than he must move out his organization from crises than he deserve to call as ........." The Man of Extraordinary abilities"
@Muhammad Hassan: Pakistan can do well with its ordinary people, not so highly paid politically connected people getting lucrative jobs.
@Nazir Ahmer and PakArmySoldier: If you want to hire extraordinary people, you will have to pay them exorbitant salaries. Whether Mr Siyani really was such an extraordinary person is doubtful, however.
@Ch Allah Daad:
Should there be no upper limit on salaries of people in the Corporate world? And will you recommend international packages for those employed in Pakistan? What a justification man. In Pakistan the highest monthly salary should not be more than Rs five lacs which can sustain a luxury living in Pakistan.
@Ch Allah Daad: He is not in the corporate world. He is a public-employee. Last time I checked PIA was under the state ownership. Stop misrepresenting facts.
@Hassan, it is quite clear, I believe that PIA is incurring losses, not earning a profit, small or otherwise.
Well we all know how you get jobs in PIA, no need of interview or degrees. You just need to have good references. Tell me one Pakistani Sector which is growing?? NONE!
In corporate world, $ 50,000 per month or 0.6 million annual is not a huge salary.
I wonder if PIA even earns any profit of $50,000 in one month.
Great to see democracy and transparency in the parliament at work. No wonder some hate the open and honest debates among the elected leaders of the country. Only yesterday CEC was nominated unanimously. It was nobody’s victory or defeat but the victory of democracy and consensus building.
@ Political Analyst, can you share the link from the net you found? It is quite funny, that people become executive of airline but they are unable to turn around (yes i understand it is a challenging task) but obviously Sayani is not child and grown up professional and also a "Former Airline Executive as per the article" .
Remember; People with integrity do not keep floating in organization with such results, they normally leave with dignity rather than shown the door.
@Political Analyst: Looks like your research is woefully insufficient and doesn't amount to much. Regardless of his qualifications, his compensation package ($500,000 / year) is reprehensible in a lower-middle-income country like Pakistan. The highest-paid government employee in the US is the President of the United States and his annual base salary is $400,000.
Anyone remember 40,000 political jobs given by PPP govt right after they took power in 2008??? I see their future really dark and they will take down a lot of merit employees with them bcoz there is no other way but loadshedding...
Yea sure that is why American Airliens is in Bankruptcy
I did some research on the net and this guy was really capable. Its governments mistake for not utilizing his capabilities. You cannot cut someones feet and ask them to run ....