LAHORE

In absence of Chairman PIA, the mediocrity dominated management has bogged down the airline with formation of numerous committees, comprising of serving and retired controversial executives, union representatives, creating a situation of “Blinds Leading the Blinds”. A Supreme Forward Committee dominated by pilots and union members has been formed consisting of Managing Director (MD) Capt Junaid, Deputy Managing Director (DMD) Engineering, AVM Qasim, DMD Operations Capt Humayun Jameel, Hidayatullah President CBA, Capt Sohail Baloch President PALPA, Shaukat Jamshed President SAEP, and First Officer (F/O) Chakkar, member PALPA. This Committee has co-opted another Forward Committee comprising of retired PIA former executives, all holding foreign nationality, some of them working in other aviation related companies with a clear conflict of interest with PIA, comprising former Director Finance, Safdar Rizvi who retired in 2004, allegedly accused of fudging figures, former DMD Dr M Shah, currently employed by PALPA, former Director Finance Arif Majeed, currently working in a private airline, former Director Marketing Kamran Hassan currently working as GM Gerry D’Nata and allegedly involved in Cargo Aids Scam defrauding PIA of over Rs.140 million, and senior stewardess Riffat Yasmeen. Most of these retired executives were involved in serious controversies and financial irregularities, and it was during their tenures, that PIA was going in losses, with a powerful nexus of travel and cargo agents emerging, dictating policies and foreign/ domestic postings in key departments.
This committee has already suggested reshuffling in marketing and finance, which have been carried out. Another such committee is being formed for fleet induction. These cosmetic measures will neither serve in restructuring airline, nor effective measures to stop pilferage, boost revenues and improve yield and declining services. PIA is perhaps the sole state-owned enterprise, created through an act of parliament, which has not filed criminal charges against scores of employees, many of them still employed, who submitted fake academic credentials and domiciles, although members of National Assembly, Punjab Assembly and Senate have been imprisoned for similar fake degrees. These employees included five pilots, out of whom four were facilitated to resign with full benefits and allowed to retain their Airline Pilot License issued by CAA Pakistan.
PIA, the national flag carrier, with Total Accumulated Losses as on 30 June 2013 peaking to Rs170.03 billion and half yearly losses from Jan to June 2013 totaling Rs 18.383 billion is expected to post further losses in 3rd Quarter of this year ending 30 Sept of approximately more than Rs.10 billion, is still without a Chairman. PIA management has appointed another intermediate pass junior pilot, First Officer Chachar Shah, as GM Fuel & Brand Management, whose sole qualification is that he is son of former retired DMD Dr M Shah, presently employed by Pakistan Airline Pilots Association. During January to September of 2013, Corporate Report submitted to BoD reflects PIA’s Available Seat Kilometres (ASK) declining by 12.5pc, with revenue per kilometre falling by 10.5pc, as compared to corresponding 9 months of 2012.
Actual number of passengers who travelled on PIA decreased from 5.2 million in first 9 months of 2012 to 4.7 million in period Jan-Sept of 2013, i.e a net decrease of 5 lakh, resulting in a revenue fall of 9pc. However because of deployment of smaller capacity aircraft and reduction in frequency of flights on various sectors, the Seat Factor has increased by 1.5pc.
Although Chief Justice of Pakistan taking notice of precarious critical financial situation of PIA has expressed his concern over inordinate delay in appointment of a competent, qualified management with integrity, there seems to be no hurry either in a meaningful shakeup by sitting executives of PIA, nor by Federal Government. While Board of Directors has been reconstituted, the Board in absence of Chairman is incomplete and all decisions or appointments made in the interim period lack any legal credibility. Since all powers of appointments of GM, Directors, DMD etc vest with Chairman and BoD, not with anybody else as per PIAC Act XIX of 1956 modified in 1985. The Additional Attorney General has given an assurance to SC that HR firm has short listed three persons and a decision is awaited.
When contacted spokesman of PIA said that committees were formed only to help out the management to convert the losses-stricken airline to profit-oriented entity.