Privatisation of state owned enterprises is a good alternative, but if mishandled it will meet the same fate that befell IPPs, unless strong independent regulatory controls are enforced by state and qualified professionals with integrity and competence are placed at the helm. When PIA submitted a business plan for inducting B777, it envisaged growth in revenues, expansion of routes and profitability by 2011, instead its accumulated losses escalated beyond Rs200 billion by the end of 2013. PIA’s fall from airline of repute to disrepute is a direct consequence of incompetent corrupt cronies appointed by successive governments, their unethical practices, no accountability, massive pilferage and not because of commercial factors.
Public and state owned airlines like Ethiopian and Emirates have grown, so has Etihad and Qatar, because their government appointed best qualified teams of professionals to run them, with a competent board of governors overseeing working of executives and zero tolerance for revenue pilferage and financial or administrative irregularities. The fact that PIA profits, fleet and routes recorded growth under Rafique Saigol and AM Nur Khan, only proves that given a good management with full powers, it can become an airline serving its clients, making money, instead of turning into a white elephant which it has been reduced to by its CEOs with conflict of interests and a history of financial irregularities.
What PIA needs is a CEO with competence, integrity and experience of Tewolde GebreMariam of Ethiopian Airlines, Michael O’Leary of Rayaan Air, Craig Kreeger of Virgin Atlantic, or Tim Clark of Emirates, instead of the choice of semi-literate cronies, or retired uniformed officers appointed by every successive government, starting from Pervez Musharraf to Asif Zardari and now Nawaz Sharif. If PIA continues to post at key stations like Manchester, Birmingham, Toronto, New York, incompetent cronies then adding another 15 new aircrafts on lease would meet the same fate as did the induction of B777 fleet.
What Pakistan needs is powerful independent regulatory bodies, enforcing financial and administrative discipline in both public and private sector enterprises, ensuring there exists no conflict of interests, with a comprehensive system of inbuilt accountability and zero tolerance for organised corruption. This cannot be achieved unless those involved in malpractices and on payroll of PSM, PIA, CAA, etc are surgically eliminated with no exception.
MALIK TARIQ ALI
Lahore
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