An uphill task for new PIA MD

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The newly appointed Pakistan International Airline (PIA) Managing Director Rao Qamar Suleman will have to face a tough time at the cash-strapped national flag carrier.
He will have to do a lot of restructuring to streamline operations as almost ten grounded aircraft are still queued for maintenance, Pakistan Today learnt on Wednesday. PIA sources said the PIA MD would have to reassess the capability and capacity of the airline’s higher management, as merit had been violated in most appointments by the previous management for obvious reasons. Sources said as many as ten aircrafts, including one Boeing 747, one B-777ER, five Airbus A-310s, two B-737s and one ATR 42-500 were grounded for scheduled maintenance, while A310 AP-BEC had been grounded since October 24, 2011.
They said 14 engines needed overhauling, but PIA did not have any plan how it would make its fleet fully operational. The previous management signed an agreement of $700 million credit facility with Dubai-based company Transworld, but the airline could not make this deal operational, even top man has been changed, they underlined.
Sources said an Airbus A310 (AP-BGN) was grounded since November last year as its parts and engine had been installed in other aircraft to get them ready for flights. Airbus A310 (AP-BGN) was waiting for both Check-A and some spares as well as shake down inspection.
The engine of a Boeing 737 (AP-BFT) had completed its life, while to keep it in operation it was replaced with other grounded aircraft as PIA had no new engine for this aircraft, they added.
The sources said the national flag carrier’s management had been planning to purchase new aircraft despite its surging loss of over Rs 100 billion.
“Any sane management should first use its resources efficiently and then opt for new purchasing, but despite the huge losses illogical decisions are being made at the highest level,” a former PIA official said.
He pointed out that engineering department that was being criticised for all such inefficiencies was the same that helped Emirates, Qatar and some other foreign airlines to develop their state-of-the-art engineering facilities. Highlighting the mismanagement in national flag carrier, another unnamed official disclosed that a damaged engine uplifting contract was awarded to a transportation company at the cost of approximately $33,000, which was scheduled to start arriving in Karachi this week. However, for reasons best known to the PIA management, this low cost alternative was replaced with a chartered flight from Amman to Karachi, which would cost $140,000, as quoted by Rayyan Air.

15 COMMENTS

  1. Anybody appointed anywhere by this govt will be presumed to be corrupt. Guilt by association!!! Don't expect much from the new MD. He will line up his pockets first and pretend to be knowing what he's doing and 3 years later we will find out that PIA is in even worse shape (if its possible) than before. I hope I'm wrong but I'm afraid I'm not.

  2. All past solutions have required for more (than budgeted) money to be thrown at the perceived or real problems, with very negative & unsalvageable outcomes. Chances are any new solutions might also require more money. It must be remembered that the money thrown is publics' debt. Any solutions, no matter how remote, are mostly available within PIA capability and resources – For that you do need the heart & will to be sincere.

  3. Keeping Railways alive by one way or the other does make sense. But as far as PIA is concerned, it is time to pull the plugs off the hook & let it die in a peaceful manner sooner the better. A country like Pakistan simply can't afford to have the luxury to keep afloat a loss making entity to the tune of 100 Billion. RIP PIA!!!

  4. This white elephant called PIA needs to be privatized at the earliest. Rest is all bull shit.

  5. He must start by breaking the various “Cults” formed by unions, and secondly get rid of heavily excessive staff. But I doubt very much, since any administrative action will conveniently be portrayed as political one, in particular by the dominating athno-political party of Karachi. The new boss has a tight rope to walk on, and we hope and pray for his success in restoring to what once was the pride of nation, PIA.

    • I like your input into the current position of PIA ….. Any management that comes to power brings more staff to the company then to slash the already excessively over staffed airlines ….. 22 thousand people are doing the job of 8 thousand people …. Fire ten thousand people the air line will be profitable over night ….. Every government change brings its own list of people tobe absorbed into the airlines ….if question you be jeapordizing your own bread n butter so go figure ….. I love to hear how people talk about the New MD miraculeously gonna fix all the problems in the airline that has absolutely no clue about the where abouts of the company or anything else ….you are quite right in saying that he will line his pockets and move on …..

  6. PIA as we know has become a financial cripple through high embezzlement and gross mismanagement. Even if the former Air Chief does prove to be honest, as a former servicemen he lacks commercial expertise. Simply issuing orders to his subordinates will not be enough, resurrecting a bankrupt mismanaged organisation requires very special skills which he simply will not possess.

  7. Atleast he will hire competent people on key management positions if he lacks the skills. Not like past MD who hire incompetent staff and enjoyed corruption in the shadow of mis management.

  8. We congratulation and well come to New Managing Director to took charge of Pakistan International airlines as a this trouble time.. We all Employees should make strong and fully hard work for cooperation each others.. I many time give many good good suggestion to head office about PIA but no body can not consider it because when we cover the small small leakage so big leakage automatically will be closed but i though the first things is that PIA was naver consider their junior staff suggestion therefore some time it append .we hope the new MD of PIA will consider all of PIA small small leakages and then in this manner we will cover the all insufficient thing for Airlines specially in Gwadar station have some of problem due some flight operating loss if we consider they will be profit for airlines…

  9. PIA with its laurels in history has been coaching so so MashaAllah! airlines around the world-Air China..Air Malta..Emirates..Singapore Airlines…and more!
    This player ought to realize that in being a coach it is making a challenger, a player in the business world of airline also. Don't look back here-time to concentrate and bring our house to order before letting others peep.
    Love you,
    Zerqa

  10. I have nothing but sympathies and off course prayers for you. I am sure you are a skilful leader who can deliver. The issue is that you just cannot do anything worthwhile until or unless you are allowed a free hand by the government (something his predecessors did not get). It is highly unlikely that you will get a better deal.

    Historically, PIA’s staff has been its strength but political appointments have changed all that. Dishonesty, incompetence and financial malpractices have led PIA to its downfall. I really expect nothing from you until or unless you identify and root out such corrupt individuals from PIA.

    The masses are clean and sincere. Perhaps a targeted cleanup would work. Start with critical units such as Revenue Management, Sales, Procurement etc. These very important functions which should not be headed by individuals with a tainted past or a political background / affiliation. There must be zero tolerance for incompetence; General Managers must have the relevant experience and academic background to give direction to their staff. So please appoint the right people in these functions.

    Please order a comprehensive audit for all PIA departments. Invite transparency international and other such bodies. Identify the corrupt and kick them out. The criteria for promotion and placement should not be political affiliation or flattery. It should only be competence and performance against targets. Individuals at all managerial levels must be honest, competent and also reflect true leadership skills.

    Additional measures should be introduced such as a Speakup Policy encouraging all PIA employees to come forward and highlight cases of corruption. Moreover, risk management is something PIA is simply unaccustomed to. Operational, finacial, reputational and regulatory risks need to be managed more aptly and proactively. A risk management framework must be adopted at PIA.

    A lot of people blame the past CEOs for PIAs plight. I won’t. Its easy to blame the top man. Please don’t forget CEOs have come and left but PIA still bleeds. All of them had the same lot of ‘professionals’ to cope up with who excel at the art of ‘surviving’. You should just not try the tried, tested and failed. PIA needs a cleanup… A proper one this time..

    I will end on an optimistic note… Good luck to you as the new MD… You have many challenges ahead… I hope you prove me wrong and are able to fly PIA back to stability. Ameen.

  11. Airline where Masters in Economics are running Flight safety will be nothing but disaster. it is a miracle how these planes really take off and lands with out the Professionals. people with irrelevant degrees should be kicked out first.

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