Business

PIA still a manageable entity, says former MD

‘Financial loss’ a propaganda; aimed at preparing the grounds for privatisation

Qaiser Butt August 25, 2015

PHOTO: REUTERS

ISLAMABAD: Followers of Pakistan International Airlines will always believe the national carrier is in the doldrums. For those who have worked for the airline, the story is different.

Captain Nadeem Khan Yousafzai, former PIA managing director, belongs to the latter group.

“It is time to take firm decisions concerning the fate of PIA; make it or break it,” said Yousafzai, who served as the airline’s managing director in 2011.

The federal government, since 1990, has been actively considering selling the airline to the private sector due to persistent losses, but Yousafzai argues against the intended move.

He advised the concerned heads in Islamabad to save the airlines from further destruction and alleged that wrong decisions would lead the company nowhere. “In fact, those officials who are preparing the ground work for PIA’s privatisation are after its assets that are worth billions of dollars,” he added.

The former MD criticised policymakers and said both the employees and the top management were responsible for the current state of affairs.

However, he refused to comment on the reports that a few top officials had already decided to hand over the airline to a Saudi Arabian commercial party.

He did not blame any individual for bringing the airline on the brink of financial crisis. However, he said that those who effectively turned international air traffic from Karachi to Dubai were certainly responsible.

“If someone sincerely wants to know the cause of the worsening financial situation, they should first determine as to who sold out the precious routes of PIA,” he added.

Independent business circles believe that the privatisation of PIA was aimed at obliging ‘favourites’ and opening new avenues of corruption.

Selling of precious routes to foreign airlines has been a serious concern among the employees for the last five years.

Yousafzai, a former PIA pilot, was appointed the new managing director of the airline after a weeklong strike held by pilots and other employees in 2011.

The staff had accused the PIA top management including its MD Captain Aijaz Haroon for selling precious routes to Turkish Airlines. The strike came to an end after the government asked Haroon to resign and cancelled the MoU signed between Turkish airlines and PIA.

Yousafzai said that a few high-ups in Islamabad are trying to misguide people by telling them the entity is incurring losses. “Such propaganda is aimed at preparing the ground for privatising the airlines at throwaway prices.”

As for over-staffing, he said it was not a very serious issue and the surplus staff could always be exported to foreign airlines. “Several Pakistani engineers and other technical staff are already working for the gulf airlines since many years,” he said.

Despite the fact that the PIA staff has been working without salary since nine months, Yousafzai believes the airlines is still the best commercially viable entity. “PIA has helped establish 22 airlines in different parts of the world when it was one of the three top airlines.”

Published in The Express Tribune, August 25^th, 2015.

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COMMENTS (8)

Well-whisher | 8 years ago | Reply It is not suitable to discuss the personality where as we should discuss about his claim that is 100% true. The fuel prices have been decreased upto 60% against their tenure and PIA getting profit now. There is best time to revive this airline and bring back the history. The privatization in Pakistan is a bad experience (KESC, PTCL) and we should force the government to save this asset.

Woz Ahmed | 8 years ago | Reply Expand PIA....so I can enjoy my free flights to more destinations. Sell PIA as soon as possible, or close it down. Most staff per plane, despite half the fleet being 30 seater ATRs !,

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Nationalist | 8 years ago | Reply It was his period in which PIA suffered maximum losses. He did not have the courage to say NO to any illegitimate demands of those in power. Hundreds of 'Jialeys' were sent on fake Hajj postings for 40 days each, paying millions as allowances to them, when PIA had no money to pay salaries. I can quote many cases of corruption which he approved due to pressure from the ruling family This gentleman doesn't even know that routes are not salable. Mr. Ijaz Haroon, despite all allegations, was the most competent MD during the last few years. He closed all those routes which were making heavy losses. IF PK-TK agreement could have matured, PIA would have stood up on its toes by now. The new Chairman is a highly professional gentleman. I wish him all the best in his efforts to turn around the airline. In my view, privatization is the only way to cleanse it and help it regain its past glory.

DON | 8 years ago | Reply Meeting with the Boeing of more than 12 hours straight on to buy 5Boeing 777 aircrafts. That Md had made this possible but infact when he left PIA cancelled that deal and published an advert for Boeing. The boeing heard that and litterally took a class of the current Govt. Now PIA has to purchse it from boeing company slots pia has changed and they have to get it on higher prices. Second thing is that he was the person who opened the route to Madina Sharif and now more airlines are going there once the route was opened before that no airline nor PIA could go there. Moreover he also opened up a flight for Sri Lanka. Then he recovered about $45million from the airbus which are of PIA. Got the deal made with the UAE based compang of $billion of credit line on spare parts. Got the world award form Make a Wish Foundation for PIA in prividing the soft image of Pakistan. If detailed info you want then plz go to the head office and ask about his reputation. PIA has made many airlines and now its in losses that doesnt mean it cant stand up again and one more thing He also made the high rise policy which we never ever had in our country when he was DG CAA by calling ICAO and endrosed by PAKISTAN AIRFORCE.

Shuaib | 8 years ago | Reply @jb: Why not follow the Singapore Airlines route of selling 45% or 55%? When we have 74% we will complain policies are not implemented, when we have 45% we know that we have a smaller share and therefore it's fine that the private venture is making the decisions.

ishtiaq | 8 years ago | Reply It is strange that he thinks PIA is commercially viable while it lives on taxpayers money and cannot even pay salaries to its' employees. His solution about the surplus staff is even more bizarre. A person in his position and knowledge should present concrete and workable solution rather than throwing unfounded blames.

Rafay | 8 years ago | Reply This MD wants another turn to make billions again... when you were MD why you have not make it profitable.. don't waste billions of tax payer money into this white elephant. privatize it as soon as possible so people can get good service also saves billons of tax payer money...

jb | 8 years ago | Reply MD's like these are probably the reason PIA is now in the doldrums. Mr. MD, if PIA's financial situation is a propaganda, why is it that Gov't has to issue billions in equity injections into the entity every year? Why are all their loans Gov't backed? If over staffing is not an issue, why is average staff per plane in PIA one of the highest in the world? If "giving away routes" is the only issue as you put it, why is it that PIA's quality for customers seems absolutely third class? After all, service is all that customers pay for. If that is not up to the mark, dont you expect a revenue impact from that? Its high time PIA is privatized. Selling a 26% stake with management control to a third party will mean Pakistan Govt maintains a majority stake and benefits from economic upside. If there are concerns as to what the new management will do, incorporate that in the Sale Agreement.

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