Financial indiscipline

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Merely changing the MD of PIA will not resolve the multitude of problems that afflict the national airline, unless it is rid of the elements responsible for organised corruption and incompetence that has destroyed it financially. The least of PIAs problems are its loyal clients which assure it a seat factor of over 60%. All that the marketing has to do is generate an additional 10% to 20% of load and for the management to plug the leakages.

PIA fare structure is comparable to other airlines, which with a similar load factor are going in profit. Investigations need to be done into the reasons why PIAs former MD made a payment of 32 million pounds to Rolls Royce when the Finance Department had negotiated a settlement of 26 million pounds for engines on the ageing fleet of Boeing 747 that had been grounded by his predecessor.

Massive irregularities plague procurement of technical spares, which have caused losses of billions. How could the former MD justify more recruitment in PIA, which already has surplus of administrative and marketing staff, by recruiting over 100 more MBAs against an unnecessary requirement of 25 vacancies? Allegations made by those recruited that they had paid huge amounts for their recruitment should be investigated in the light of similar allegations levelled against the former MD by AVM Mushaf Ali Mir.

Similarly, the controversial Catering and Maintenance Repair Overhaul contracts done by him need to be probed by independent investigators, who cannot be influenced by the chairman, or those executives who were party to these irregularities and still hold their offices. PIA lost a lot of revenue by changes made in GSAs and Ground Handling Agencies on the whims of the former MD at various international stations on its network. An investigation is also required to reveal the alleged underhand deal for letting go of its routes, which attempt was aborted by timely intervention of employees. Unless these actions are taken PIA will continue to bleed and ultimately collapse.

MIR TASSADAQ

Lahore