Flying low: SC seeks explanation on PIA’s swift descent

Defence counsel admits ‘overstaffing, flight delays & previous losses’ weighing down carrier, affecting performance.

ISLAMABAD:

The Supreme Court on Tuesday expressed displeasure over the state of affairs of Pakistan International Airlines (PIA), raising several questions over the national carrier’s alleged non-transparent deals, mismanagement, overstaffing and delayed flights.

A three-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry issued notices to relevant authorities, asking them to address the court’s reservations when it resumes the hearing on December 4.

During the hearing, PIA’s counsel Raja Muhammad Bashir apprised the court of losses worth Rs119 billion and admitted flights were frequently delayed. Justice Azmat Saeed, however, asked Bashir not use the phrase ‘frequent delays.’

“It will be a miracle if a single PIA flight takes off on time,” Justice Saeed quipped, and asked where the billions had disappeared.

Bashir cited increase in fuel prices as one of the reasons for recent losses, but was reprimanded by Justice Gulzar Ahmed who asked: “How many people travel free or on concession through PIA? You have increased the fare as well.”

The chief justice lamented that national institutions were being destroyed, with no one there to take action against rampant corruption in PIA, Pakistan Steel Mills and other state-owned companies. He said the court has been waiting in vain for a reply from concerned authorities since December 28, 2011.

“Let us summon your chairman for his reply in this regard,” the chief justice told Bashir, who maintained PIA Chairman Lt-Gen (retd) Yasin Malik and the present management had distanced itself from the company’s past and has decided not to defend wrongdoings committed earlier.

When Justice Saeed asked what wrongdoings had actually been committed in the past, Bashir was quick to correct him: “Alleged wrongdoings.”

Upon this, the chief justice inquired whether PIA’s present management had conducted any forensic audits to hold accountable those responsible for maladministration.

The chief justice stressed on the need for a forensic audit to run the airline properly and assess the resources and requirements of the company. He said it was important to find out the reason for PIA sustaining losses as commercial ventures throughout the world are meant to make profits.

When PIA’s counsel sought advice from the court on how to improve the carrier’s performance, Justice Chaudhry shot back saying: “Why are you seeking advice from us? You have financial experts; why seek assistance from outside?”

The bench pondered out loud if one of the reasons was overstaffing. Bashir agreed with the judges and said 350 employees are working per flight. He, however, cited legal issues as impediments in rightsizing.

“You made the laws and now you are complaining about them,” remarked Justice Saeed. “It is the federal government that has the power to make the laws.”

The bench asked PIA’s counsel to read out a letter sent to the court by Transparency International, which raised questions over PIA’s recent deal with another international airline. The court also asked why PIA had recently purchased new aircraft on lease.

“Why were the grounded airlines not made operational on time?” Justice Gulzar asked. Bashir replied by saying all eight airlines were recently made operational after engineers in Oman repaired them.

“Why were the aircraft sent to a foreign country for maintenance when the government has employed Pakistani engineers?” Justice Gulzar asked.

The court was told that PIA has 37 operational routes at present. PIA officials, however, were unable to tell the court the exact number of routes during the last five years.

The bench maintained the causes of the carrier’s poor performance cannot be determined unless all the facts are known. It gave PIA’s management three weeks to present relevant information to the court.

Pakistan Muslim League-Nawaz leaders Marvi Memon and Iqbal Zafar Jhagra also pleaded to become a party in the case.

Edited by Ali Haider Habib

Published in The Express Tribune, November 14^th, 2012.