Few can doubt that the Pakistan International Airways (PIA) is in desperate trouble and has been for many years. Many hark back to a golden past, the days when PIA provided the seed-corn which enabled the startup of the now hugely successful Emirates airline in 1985. The days when PIA’s service was an airline industry benchmark. Golden pasts are rarely regained, sick airlines have a global tendency to fail and PIA has been hemorrhaging money at a rate which virtually guarantees a massive restructuring. The government of Nawaz Sharif inherited the PIA albatross from its predecessor, which had done little to alleviate the systemic problems of chronic over-manning, indifferent or inept management and a questionable maintenance record. The government plans to sell off 26 per cent of the troubled carrier in a partial privatisation, but the 16,600 employees are hoping that their current management are going to protect their jobs with a plan unveiled on September 23.
The managing director appeared confident that by adding profitable routes it would be possible to increase revenues and possibly break-even within a year. This would be a startling turnaround if achieved. He claimed that the salary bill was not the biggest of his problems and that staffing would drop to 12-13,000 over the next five years — which would still leave PIA with the highest manning level per aircraft in the world. The airline has 26 operational aircraft out of a fleet of 38 and needs new aircraft — which it cannot afford. Pakistan cannot afford a national carrier that eats three billion rupees a month and although the PIA management appears to be taking an upbeat position, the reality is that the surgery of privatisation is fundamental to the airlines continued existence. Buying time with hopeful paper strategies is not going to work today any more than it has in the past. There may be pride in having a national airline but pride does not pay the bills, profit does. Time for change, PIA.
Published in The Express Tribune, September 25th, 2013.
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Corrupt airline of the corrupt people. Let us finish the corruption in each and every institution of the country. Severe punishment for the criminals.
PIA management has no interest in turning around this company and they have no vision, being political appointees. Why has Emirates succeeded and PIA failed ? Its not simply a question of money. The Sheikh had a vision to make Emirates one of the premier airlines of the world. And he has achieved it by having a very good management team, in fact one of the best in airline business. Had he hired PIA executives, all the money the Sheikh would have sunk in would have been lost as is the money being put in the Pakistan government.
The country cannot afford this white elephant. There are more important things like education and health that require this money. Let PIA staff sit at home and dream about the times that were. Pak tax payers shouldn't have to subsidize their life styles.
PIA has to shed its surplus staff, which includes pilots, engineers, flight engineers, cabin crew, traffic, sales, accounts, admin, GMs, Directors and DMDs. With 30 aircrafts the total number of pilots required are 420 only. PIA has under 26 serviceable aircrafts. Even f they get on lease another 5 or 7 aircrafts, they would need 70 or 84 more pilots. Similarly number of aircraft engineers has to be reduced, since except for 2 B747, the rest of fleet undergoes routine maintenance, while engines and other parts are sent abroad, because PIA does not have the capability. The number of cabin crew must also be reduced. There must be a salary reduction across the board. Air Blue has just enforced a 30% salary reduction. Either these steps or PIA has to be shut down and handed over to a private party with full hire and fire powers.
Sometimes it's easier to buy a new car rather than go through the trouble of fixing an old one. Time to quit funding PIA and let it die the death it deserves. Most countries in the World don't have a national airlines and most countries in the World have better air service than Pakistan.
What's the point of reducing personnel ? Next PPP is elected they will rehire everyone and give them back pay with interest. No thought about whether the business can support this.
It has to be COMPLETELY privatized so the government is not on the hook for anything. Right now as the government always ponies up the deficit there is no pressure to improve the bottom line.
...and as far as employees are concerned, over-staffing should be strictly dealt with. Unnecessary people should be kicked out immediately. Why should government bother about their dependents? They should have thought about their families themselves when they used political connections or bribed their way into PIA in the first place.
No wonder their pilots are drunk!