It is imperative at this point that the government ensure that it has followed the letter and spirit of the law in authorising this transaction. PHOTO: FILE
The business community has been growing impatient with the government as of late and there was even talk of the administration being an early disappointment. An investment bank, issued a report earlier this week, citing low morale among corporate executives and a waning appetite for capital investment. With this move, the government has taken at least some measures to begin living up to its electoral promises.
Having said that, the task they have chosen to take on is not an easy one. PIA’s union is openly hostile to the privatisation and has vowed to take the matter to court. It is imperative at this point that the government ensure that it has followed the letter and spirit of the law in authorising this transaction. It would be a shame for a sound policy decision to be ruled illegal on a technicality. The union is waiting to pounce on any government slip-ups. The administration must not provide them that opportunity.
Yet, even if they get the technicalities in order, the union does have the upper hand, as the previous government discovered earlier in its term. The pilots’ union, for instance, can institute a ‘go-slow’ protest, where pilots deliberately fly the planes at slow speeds to achieve the dual aim of inconveniencing customers and dramatically increasing fuel costs for the airline. Future buyers will likely know this, which may make it difficult to find investors. Former PIA managers have welcomed the move, but warned that it could get violent. We sincerely hope they are proven wrong.
Published in The Express Tribune, September 16th, 2013.
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COMMENTS (7)
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Honestly if the Government wants to seriously turn things around it needs to get rid of surplus/unwanted employees especially if they got jobs on political parties platforms even if they are competent, secondly those who are incompetent to restructure the organization and make it more attractive. This be done not only in PIA but also in Steel Mills, Railway, OGDC and all other public entities. If people lose jobs so be it as this country cannot continuously bear the burden of political patronage. Enough is enough. The PML-N will have to risk political a fallout as well as pressures from unions and political rivals. If it does it will do this nation a great service.
go slow does not mean you start flying airplanes slow. airplanes dont fly slow or fast. there are fix procedures one follows & has nothing to do much with our choice. go slow will only keep pilots from doing any favours to the management. thats all. for example: working on mandatory day offs, putting in overtime, giving up required rest period & getting back. up in the air..... you the point. therefore, please people, go slow does not mean flying at slow speeds. by the way, the mathamatics of operating cost is that, if you fly slow, you burn less fuel but, take more time to get to destination, which adds up to the total operating cost of the flight more than the fuel saved. so you cannot cheat in flying. its not like working in a stock marketvor a bank or property bizz. Flying is different. you dont have margin for all that.
@roadkashehzada: PTCL, UBL, HBL, ABL all privatized during Musharraf's tenure.
@roadkashehzada: Wasn't the editorial about PIA?? Maybe I missed the big plane in the picture if not the editorial.
The biggest concern is that the airline needs a facelift, and whether PML government is brave enough to take tough decisions to make it happen. It doesn't happen just by focussing on flashy advertising. The airline needs to be operationally efficient.
But one this is for sure: it all starts at the top. If there really is a will to fix PIA and bring it out of a perpetual state of loss, then it will happen - unions or no unions.
@Sodomite: any progress you see in pakistan state oil, PTCL, habib bank, UBL, ABL, MCB etc, cement sector, textile sector, stock markets is due to aggressive privatisation and financial policy of PMLN in two tiny tenures.
PMLN is incompetent in policy making. Remember SROs?? They are finding ways to dismantle the state into private hands just like Zardari wanted to give it to Turkish Airlines. In a nation of 180+ million people PMLN have not been able to find a Chairman NAB, Chairman and Members of PTA, etc., which SC has set deadlines that keep passing. Does anyone seriously believe PMLN can sort PIA, Railways or Steel Mill?? Didn't they appoint a PIA Board of Talent that was disbanded in ignominy after PM's Civil Aviation Supremo turned out to be a Canadian citizen who had previously been court-martialed. Come come ET. Your readers are not that STUPID.