Pakistan International Airlines (PIA), a state-owned National Flag Carrier of eminence, is in a shambles. The organization today confronts a severe financial crisis that leaves the government in the citadel of power with no choice but to privatize the organization. In the wake of huge accrued financial losses, to the tune of over Rs300 billion and loss of Rs10 crore per day as reported in Pakistan’s print media, privatisation is perhaps the best option to bring the airline out of its current critical financial predicaments.
PIA which was once a very profitable organization and which had played a huge role in establishing the Emirates Airlines, by providing technical and administrative assistance to the new carrier as well as leasing a new Boeing 737–300 and an Airbus A300B4-200, is today caught in a serious cash-trap situation. The question is what has led the organization to this shockingly awkward state of affairs? The strongest of the umpteen reasons there may be for the crisis that the national carrier has got entangled in is overstaffing and hefty salaries and perks and privileges being paid particularly to its employees at the top.
Like other overstaffing levels in the public sector organizations, in which jobs appear to be for life, Pakistan International Airlines (PIA) hasn’t been different either. Treading the same path as the other public sector organizations PIA too kept on unnecessarily hiring additional staff to oblige the political bosses. In doing so, it has not only multiplied its woes but has brought the organization to the brink of total collapse.
Statistics markedly reveal that with over 700 employees per aircraft, PIA leaves Air India (Indian National Flag Carrier) and some other international airlines far, far behind in the numbers game. According to latest reports Air India, it is believed, has drastically reduced its air-craft-to-employee ratio from 300 per flight to 108, cutting it down by almost two-third in the last two years. Air India’s reduction is truly commendable when compared to a ratio of 127 per plane at Lufthansa (38,000 employees: 299 aircraft), 140 at Singapore Airlines (14,000 employees with 100 aircraft) and British Airways 178 employees per aircraft. Emirates, with a fleet of 212 aircrafts, has employee-plane ratio of 220 to one. For Turkish Airlines, another important regional carrier with 236 planes, it is far lower — at 81 employees per plane.
How very pathetic is the state of affairs in Pakistan’s National Flag Carrier PIA can vividly be seen when compared with other eminent National Airlines of the world. Under the present extremely dismal scenario privatization is the only viable option to salvage the National Flag Carrier, give it a turn around, and steer it back on the path to progress in larger national interest and also in the interest of the organization and its employees. However, in doing so, it must be ensured by the government that the interest of the employees of the Airline is fully safeguarded and no compromise whatsoever is made in making the entire process of privatization absolutely transparent and infallible.
M FAZAL ELAHI
Islamabad
