President Asif Ali Zardari Friday directed the Pakistan International Airlines (PIA) management to put its house in order and bring in a “wide ranging reform plan” to tone up the PIA by arresting rising liabilities, stemming general decline and converting the state owned airliner into a profitable organisation.
Optimal utilisation of resources
Chairing a performance review meeting of the PIA at Aiwan-e-Sadr, the President took to task the PIA management telling them that injecting more finances alone was not the answer to the problem. “What we need in equal measure is the optimal utilisation of financial, material and human resources as well as finding out of box solutions for renewal of the existing fleet,” he said, adding that a reform package was also necessary for safeguarding interests of the organisation and its employees. Spokesperson Farhatullah Babar said that the special meeting had been convened in the backdrop of reports about the airline that suggested all was not well with it and called for toning up the organisation.
Ensuring cost effectiveness
The President said that timely replacement of the aging fleet with more modern and economical ones would not only reduce the operational costs but also ensure safety of the passengers.
Welcoming management’s initiative to separate non-core activities from the core business, the President said that such steps were urgently needed in order to ensure cost effectiveness of the business.
The President during the meeting also urged the management to ensure that the passengers’ complaints, if any, are properly addressed and that they are properly facilitated while traveling with PIA.
MD PIA Capt. Nadeem Khan Yousafzai briefed the meeting about the organisation and the steps taken to reform the organisation.
Revised aviation policy
During the latter part of the meeting, DG Civil Aviation Authority Air Marshal (Retd) Khalid Chaudhary also briefed the President about performance of CAA.
He informed that in order to promote aviation industry in Pakistan, a revised National Aviation Policy has been drafted.
He said that recently International Civil Aviation Organisation (ICAO) conducted extensive State audit of Pakistan from June 5th to 17th, 2011 and graded Pakistan at 82 per cent compliance level against the World’s average of 65 per cent.
He also said that Safety Management System of CAA was recognised as one of the best in the world especially its drive for achievement of Integrated Management System was highly appreciated by ICAO auditors and experts. CAA has also been invited to assist ICAO in several disciplines, he added.
Air space management
Improvement in Air space management, enhanced capability to design Instruments Flight Procedures, establishment of six new Air Traffic Services routes in Karachi/Lahore FIR (Flight Information Region), newly acquired state-of-the-art air Traffic Management System and Automated Message Handling Systems were amongst the successes of CAA.
Khalid Chaudhary said that various initiatives were being taken in the Airport Service Performance side in line with the current best prevalent practices.
Project financing
Revenue during financial year 2010-11 registered a 6.3 per cent increase over the last year and another increase of 4 per cent is envisaged during next year, he said. He said that for the funding of ongoing mega projects, CAA was exploring the options of financing to the tune of Rs7.1 billion.
The President was also briefed about progress on new Benazir Bhutto International Airport Islamabad. He called for early completion of the project.
The meeting was attended by Ch. Ahmed Mukhtar, Federal Minister for Defence, Dr. Abdul Hafeez Sheikh, Federal Minister for Finance, Dr. Asim Hussain, Federal Minister for Petroleum & Natural Resources, Syed Mehdi Shah, CM Gilgit-Baltistan, Air Marshal (Retd) Khalid Chaudhary, DG Civil Aviation Authority, Capt. Nadeem Khan Yousafzai, MD PIA and Dr. Najeeb Samie, Managing Director PIA Investments Limited. Secretary General to the President Mr. M. Salman Faruqui and Secretaries of Defence and Finance division were also present during the meeting along with other senior officials.