The PIA albatross

There may be pride in having a national airline but pride does not pay the bills, profit does. Time for change, PIA.


Editorial September 24, 2013
There may be pride in having a national airline but pride does not pay the bills, profit does. Time for change, PIA. PHOTO: FILE.

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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COMMENTS (7)

the truth | 10 years ago | Reply

Corrupt airline of the corrupt people. Let us finish the corruption in each and every institution of the country. Severe punishment for the criminals.

A. Khan | 10 years ago | Reply

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.

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