PIA’s sad story
Aviation Division Secretary Mohammad Ali Gardezi’s revelation before the Public Accounts Committee (PAC), that PIA management has finalised “a new business plan for revival”, did not impress too many people, especially not chairman Khurshid Shah, with good reason. And perhaps he should not have followed it up by suggesting that the government help clean up the loss overload – to the tune of Rs288 billion – so the flag carrier could “take a fresh start… and enhance its profitability”. The MD’s contribution to the discussion was no less interesting; that losses in the current year would be cut down to Rs10 billion, from expected Rs27 billion in ’14, though he did not explain what manner of overhaul would guarantee such reduction.
This comes as the airline continues to make headlines for reasons its spokesmen struggle to justify. At 690 employees per aircraft, it is perhaps the most overstaffed airline in the world. It did not pass on the oil price relief to consumers, again, contrary to the international trend. It also runs the world’s most expensive Hajj and Umra flights. And it continues to stick its nose in non-core businesses. All these, of course, are on top of the usual charges that do not even bother those in charge anymore; like political appointments bloating the organisation beyond sustenance, wide spread corruption, and chronic annual hemorrhaging (making for a sizable part of the overall PSE leakages).
It also continues to be exposed for malpractice and corruption, like the former cricket captain’s brother flying Boeing 777 despite a fake degree. That authorities did not take action even when the news broke speaks volumes of their own concern and relevance. Of course, it’s not that things will revert to normal if a fake degree holder is held to account, it’s that the airline needs to be seen checking corruption, and taking action. It’s with good reason that the PAC called the airline’s habit of cash flow problems a “legacy of losses”. Unless the AD secretary and PIA MD want to be reminded of promises not kept, again, not long down the road, they are advised to make business plans that address the real problems of the organisation. While they are at it, perhaps they should also suggest steps that will really cut down unnecessary expenditure.