PIA may be grounded in December!

Defence secretary, who is also the chairman Pakistan International Airlines (PIA), has warned that the national flag carrier might be grounded by December this year if the government failed to release funds for purchasing new planes as the buying deal had already been cancelled.

His ominous warning is in contrast with over 100 percent increase last month in the salaries of executive pilots and the office-bearers of the Pakistan Airline Pilots’ Association (PALPA), a move apparently intended to buy their loyalties. This has been done at a time when the PIA doesn’t have money to get planes.

Addressing a conference of PIA’s marketing managers some days ago in Karachi, Lt Gen (r) Asif Yasin who is simultaneously wearing caps of chairman PIA and DG Civil Aviation opened his heart to the executive staff about his inability to get funding from the federal government. “I couldn’t manage to get money from the government”, he told his marketing staff, due to its financial constraints. “It now looks that the airlines will be closed in December,” he said.

PIA had entered into a plane deal with a foreign firm that wanted sovereign guarantees, which the federal government refused. According to the procedure, the first installment was required with the letter of intent and the government was not ready to release funds. Likewise, second and third installments were to be paid before the handing over of planes.

A spokesman of PIA Mashhood Tajwar downplayed the warning of chairman regarding the likely closure of operations by December. “It was an informal remark of chairman,” he insisted.

Regarding phenomenal raise in salaries of pilots, the spokesman said it was already allocated in the budget.

However, documents available with local media indicated that the notification in this regard was issued much before the budget, in April with immediate effect. According to the new package, an executive pilot with 30-year experience has got a raise from approximate salary of Rs 800,000 to Rs 1.3 million. Likewise, a pilot with 20-year experience who has managed an executive post has received an increase from Rs450,000 (old salary) to Rs 1.1 million.