Solution for PIA puzzle

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I think for the first time in its history Pakistan International Airlines stopped flying for the entire one week due to strike call given by PIA’s employees joint action committee in order to put pressure on government of Prime Minister Nawaz Sharif to stop privatisation process of PIA. This strike is now called off and PIA is back to business but we lost during last week PIA’s strike invaluable lives of two noble, educated and hardworking Pakistanis who were PIA’s employees. The financial losses caused due to this PIA’s workers’ strike can be recovered when the PIA runs according to its potentials in future but we can never bring back those two lost lives. As a Pakistani, my heartiest felt sympathies are with the families of two wonderful hardworking PIA’s employees who unfortunately lost their lives last week during the employees strike. And as a PIA’s passenger, I salute to souls of these two heroes of Pakistan for their valuable services to the nation during their working lives.

Coming to solution of PIA puzzle general public is confused regarding the prevailing state of PIA’s affairs. I am absolutely clear in my mind that downsizing PIA staff in not advisable but at the same time the national airline cannot continue incurring financial losses year after year. So it is a puzzling situation but I think there is a solution to the puzzle and that is to bring a strategic partner in PIA having strong financial resources and rich aviation experience.

I think PIA has a very bright future ahead because it had abundant market potential and I believe common sense will prevail in decision making regarding future course of action to improve PIA performance. I would like to reiterate that over staffing is not PIA’s problem. Those who have worked with big organizations in Pakistan and abroad would agree with me that some negligible over staffing does exists here and there in all mega organizations but nobody complains about it during profit making periods. When the same organizations make losses due to reduced operations then finger is pointed out towards over staffing. Same is the case with PIA. Over-staffing is not PIA’s actual problem because employees costs is not causing losses of Rs35 billion in a year to PIA but losses are resulting due to insufficient revenues because of reduced operations.

How can PIA increases it revenue? Revenue can be increased only with increased operations which is only possible if PIA can not only replace its aging fleet but also purchases new modern aircraft like Airbus A 380. I am sure if PIA replaces all its aging aircrafts and adds new latest makes of aircrafts like Airbus A 380 in its fleet during the next five years, PIA’s revenues will increase easily to an extent there will be no loss in its books. People prefer to travel in new planes rather than 10 to 15 years old planes. Take example of Ittehad and Emirates airlines, why are their flights always packed? Because they have new aircrafts and have capacity to fly to world’s known cities.

In order to replace aging fleet and add new modern aircrafts into its inventory, PIA needs a strategic partner having strong financial resources and rich aviation experience so that it can make the required huge investment in PIA and monitor the operations more effectively. I am sure if a strong strategic partner takes over PIA management, makes investment in modernising PIA fleet and enriches it with its experience, PIA will expand its operations globally and regain its past glory. As a result, PIA will be recruiting more staff during the next five years rather than downsizing. I have worked in PIA as one of its external auditors in the years 1969-1970 and have seen glorious times of PIA and am confident that PIA shall get back its lost glory soon in future because PIA has best pilots, excellent engineers and professionals in all its departments, very hardworking supporting staff at all levels and huge market potential.

EJAZ AHMAD MAGOON

Lahore

2 COMMENTS

  1. Merely buying more aircrafts, especially over 580 seat A380 which cannot be filled, translates into more operating costs which leads to more crippling losses. With successive governments eager to appease Gulf state sheiks for their own personal interests, an abnormally high proportion of traffic rights have been given to these airlines to detriment of Pakistani airlines. Unless these traffic rights are reviewed, merely increasing PIA fleet will not achieve more profitability but more losses. The new MD of MAlysian Airlines Bhd Mr Christoff who has turned around Lufthansa has decided to sell these white elephant A380 to cut losses. In any case no airport in Pakistan is equipped or designed to handle double cabin A380 and there are very few airports even in Europe which can do so.

    • Pakistan is a country of 200 million people with it’s diaspora living in almost known internation cities .So marketing is not an issue . The actual problem is that PIA does not have capacity to capture the market . As for Airport are concerned these can be upgraded and built to handle Air bus A 380 aircrafts . I am sure when PIA gets a strategic partner like Ittehsd or Emirates who have the financial resources to modernise and increase PIA fleet and takes over management , PIA will rise and shine again . PIA then recruit more staff than downsize . Ejaz Ahmad Magoon- Lahore

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