A former PIA CEO and MD said Mian Mansha’s presence on the board was a good sign, as he hoped that Mansha would be able to deal with PIA’s problematic labour unions better than anyone else. PHOTO: FILE
KARACHI:
The government has finally announced a new board of directors for Pakistan International Airlines (PIA) under the Pakistan International Airlines Corporation Act, 1956, calling on some of the biggest names in the corporate sector to watch over the troubled national carrier.
The eight-member board announced includes Aslam Khaliq, Nasser NS Jaffer, Mian Muhammad Mansha, Arif Habib, Sarfaraz A Rehman, Imran Khan, Aviation Secretary Muhammad Ali Gardezi and Secretary Finance Dr Waqar Masood Khan. Gardezi and Dr Waqar Masood Khan will serve as ex-officio members of the board.
Khaliq currently serves as the chairman of Reckitt Benckiser Pakistan, and has also worked for the Pakistan Tobacco Company in different positions. Jaffer is the CEO and chairman of the Jaffer Group of Companies, which has interests in fertilisers, commodities, household and other products. Mansha heads some of the most profitable companies of Pakistan. In the past, the Pakistan Muslim League Nawaz (PML-N) has used his expert advice to ramp up economic growth and restructure state-run organisations. Arif Habib, chairman of the Arif Habib Corporation, has investments in multiple industries; while Sarfaraz A Rehman was the CEO of the Dawood Foundation. He has taken over charge as the CEO Engro Foods. Imran Khan runs a bottling franchise for Pepsico.
An interesting thing about the development is that Aviation Adviser Shujaat Azeem has opted out from the PIA board. Also, unlike the past when the all-powerful secretary of the Ministry of Defence called all the shots, it is now expected that the PIA chairman will now be nominated from the private sector.
A PIA spokesperson said the board is expected to meet next week and nominate a chairman.
The PML-N had promised to bring professionals on the boards of public sector companies as part of its election manifesto, but it remains to be seen if the government will also allow the board to independently hire a CEO for the airline.
Former PIA chairman and managing director Zafar Ahmed Khan said it remains to be seen if the government will allow the board to exercise its authority without political interference.
“Even during my tenure (in 2007), representation of the private sector [on the board] was more than the government servants on the board. But our oversight was weak, and key decisions were taken by the government,” he said.
Some members of the new board have the confidence of Prime Minister Nawaz Sharif, he said. “That’s a good thing, because there will be a lot of problems going ahead.”
PIA has accumulated financial losses of over Rs150 billion and is surviving on a government lifeline which has turned into a major drain on the national exchequer.
But Zafar Khan said the presence of Mian Mansha on the board should be a good sign. “He is business-savvy and can be tough and ruthless. You need someone like him to deal with the unions,” he said.
PIA’s employee unions have been a headache for successive managers. From those who work on contracts, to the pilots – nearly all employees are part of one labour union or the other. They have used these platforms to forward individual agendas and halt flights if demands are not met.
Published in The Express Tribune, July 4th, 2013.
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COMMENTS (37)
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Something I forgot to add to my last comment. PIA should become a no-frills airline. I remember my mom travelling with a low fare airline internationally- and any food item on board was charged 3 times the regular cost. Going no-frills is definitely needed as a desperate step, at least domestically. The demand of PIA tickets will not fade and cutting costs will definitely help.
Asad umer should be added to the board. and CEO / CFO of KESC as well as they have experience to deal with challenges being faced by PIA
It’s really unfair how these ‘big’ names come from various different industries. None of them seem to have prior experience nor expertise with the aviation industry. Would they really be able to provide a vision, leadership and sound operational capabilities which PIA really needs? Can’t really be sure.
And yes, not to forget how the hiring of people in the lower and middle management is subject to prior experience in the same industry because they primarily execute tasks. The logic of appointing these big names in the Top Management must also then apply right down to an executive’s appointment! Now I know the Board of Directors are not responsible to run the company but considering PIA’s past performance, the company really needs to consist of people who have proven capabilities top down to both manage, run and grow the company.
@Maher: u meant 180-degree changes, right? 360-degrees brings u back to the same point, just sayin'
its a good step, however I have cited that someone here mentioned that the CEO from aviation industry, well previously all those people who were appointed as CEO were from the aviation industry and this is one of the reasons for the huge losses incurred at the PIA, what PIA need is a CEO from the corporate sector who has extensive expertise of handling some big organizations, who can run the company free from the political interference, Those who have any doubts they can read the case of JAL, where Kazuo Inamori was appointed as CEO who had no prior experience of running an airline.
if the pia team could establish great airlines of today such as emirates and many others, why we cant let pia to be worlds best, please consider having a joint venture with either an American or European airlines and then float an ipo to generate billions of dollars with new aircraft and with internal routes to every major city in Pakistan -
has some one heard " too many cooks spoil the broth", Bring in one of these guys and give them full charge. There is certainly a difference between running your own organisation and working for states' institution. N.S has so far impressed me. He is definitely a changed person
The new set-up must first get rid of political appointees.
Yaay - free lifetime air travel and perks all around!
Only one solution for PIA and that is to privatise it ..........this exercise will be more money down the drain, because political considerations will never be done away with.
I think PIA needs to be given on long term operating lease to one of the middle eastern carriers. EK has done the same thing with SriLanka. Etihad is now doing it with Jet Airways in India. Once the airline is up on its feet, it should only then be considered for privatization. The following agenda should be implemented without further delay:
Eliminate the unions of all kinds (pilots, engineers other departments). Let them strike or protest. Renegotiate their careers at airlines own terms. Short term pain is better than getting blackmailed perpetually. Investment in fleet modernization/ replacement. Adopt best practices from leading middle eastern careersWhoever constituted this board deserves a big applause, we should appreciate good efforts, if we want these to happen.
@Khawar Sohail:
If i am correct...Air Blue belongs to Mr Khaqan Abbasi.....
The airline is a mess that is. But there is always hope. Mending it will need injection of investment and not just a little investment- MAJOR investment. PML-N has taken the right step to bring the investment types on board who can invest in the dwindling PIA and then can subsequently buy it- there is nothing wrong if the same board buys PIA's shares.
The foremost correction PIA needs is to get rid of the manual systems they have and the oldies who don't want to work. Too lengthy systems of recording and no real time data is causing more and more expense for PIA. These need to be updated.
@Maher I think you mean 180.
During last five years the corruption party filled this airline with political appointments worth nothing but corruption. The airline can not take off without getting rid of this corrupting influence
It's nice to see the big names in the new board. All of them are wonderful people. However, I am not sure if this will "Do the trick" of reviving PIA. This company has been so wonderfully mismanaged for decades and has one of the highest staff-to-servicable-aircraft ration in the world. So long as the government owns it, excessive staffing by successive governments will always be a problem. I say: 1. Create a government owned holding company. 2. Transfer ALL the shares/stock of PIA to it 3. Transfer ALL the PIA staff also to the holding company so that nobody looses their jobs 4. Sell PIA with the proviso that the new owners will "hire away" only the required competent staff from the "staff pool" of the holding company. 5. The "Holding company" keeps the left-over staff which is the re-utilized in other government institutions/ventures in the future i.e. the government does NOT hire fresh staff from out side for any other staffing requiremnts
The rumours of Qatar Airways & Mansha has to be put to rest first before Mian Mansha take over
Aviation is a very complex and competitive industry. PIA needs aviation experts who can turn around the airline instead of investment professionals. All the leading airlines are headed by people with decades of experience in aviation industry.
As a layman, I can even recommend couple of ideas that would work for PIA; Cut the he operational cost,but first govt will have to depoliticize PIA so it can cut down the no. of employees. You only get hired in PIA and no body gets fired even if they are dead they are still getting salaries. Secondly, bring in good governance, by eliminating mafia's within the the organization. Thirdly improve QoS by standardizing key processes based on Aviation standard's. PIA introduced some of the best standards back in 1960's and now the rest of world is following except PIA. Hire on Merit, if you are old and getting retired, due to mafia policy your position would be awarded to your heir, and this never ending story goes on. Without deviation from the norm, progress is not possible.
What about Conflict of interest?? Mian Masha owns Air Blue
Same old story ,any political party in power. inject its supporters in the national airline. out of twenty workers only one works. Buying air crafts is a big business and big commissions. Only way to get this airline to make some profit . close this line start a fresh airline only solution.
I won't be surprised if Mansha and Arif Habib buy shares in the airline with management control after a couple of years :)
frankly speaking I dont think all these profession will have any impact on airline
Why Not Malik Riaz?
Personally I believe, One Malik Riaz is enough to transform fortune of PIA to one of the profitable public organization is short span of time.
Just for the record sake.
Khawaja Asif, a PML N leader and Federal Minister, had on record blamed Arif Habib for March 2005 Stock Market crisis in a TV show on PTV after that massive fall at KSE.
@Mayer.. 360 degrees would mean they start right where they are now. One of the many problems with this country is lack of IQ and critical thinkers. We cannot keep relying on a few to run a country of 200 million people.
All of them are highly qualified and market leader, they have to make 360 degree changes and a major major overhaulling in PIA.
@Ahmed: Humorous and amusing "as long as the bid is US$. 1/= plus." Have a heart, man. It will be in the interest of the country and the organization if these state run corporations are brought to respectable levels of solvency and subsequently privatized. On the flip side, look at the depth and pervading corruption. It has reached such unimaginable levels that it is impossible to see fair play in any sector of the economy. Cheers and Salams
it shows that govt is serious
PIA fly pilotless.........????
@Fed up: These are board members, lets see who they hire. Its at least good that the Board is now investment professionals. As regard to Board members being from other industries, that is not uncommon. For example, buffett sits at the board of about 40-50 companies, some very technical in nature. It is not necessary to hire aviation industry guys. In the western world, CEOs move across industries all the time. Hopefully this is the start of getting things at PIA figured out!
A good Board, but lacks aviation expertise. Should have had someone from the industry as well.
Good Amen. PIA needs to be run as a business or shut down. Its unions must understand that they all will go home, without any benefits, if PIA is folded. So it is in their interest to tighten their belts and get to work, or hit the road.
As someone working in the travel industry, I can't wait for a glorious PIA revival. Although expecting magic would be unrealistic, just the addition of Mian Mansha to the board makes this very exciting. Wow.
Best Solutions for PIA, Railways and Steel Mills is to sell them to the highest bidder as long as bid exceeds more then a $1 per asset. These organizations are beyond repair in the public sector and need a private entrepreneur to do the surgery that is necessary to make them competitive and make them survive and give relief to ex chequer
Personally I think they need to hire someone from the aviation industry, all these men are well qualified but don't seem to have any skills in aviation. A member from the aviation industry seems essential.