Facing multiple crisis simultaneously, most of them man-made, Pakistan’s workforce and institutions remain amazingly resilient. In many ways PIA is symbolic of the nation it is the national flag carrier of. Beset by extraordinary interference over the years, both during military and civilian rule, thanks to the competency of its core staff PIA is still operating. For this miracle one must give credit to PIA’s pilots, cabin crew and ground engineers, and most of its management and ground staff.
Rs.32 billion loss during 2012 (overall Rs.100 billion during the PPP regime) and US$ 2 billion accumulated debt puts the govt into a potential no-win situation. PM Mian Nawaz Sharif constituted a four-member committee to restructure and reform PIA. Separating Aviation Division from the Ministry of Defence (why was it there in the first place?), he tasked them with examining the challenges being faced and recommend remedial measures and proposals thereof. Federal Secretary Defence Lt Gen (Retd) Asif Yasin Malik successfully contained further erosion during his short tenure as ex-officio Chairman PIA, his observations would be helpful.
With 42 aircraft only, 400 personnel to an aircraft is overstaffing, worse 21 aircraft operational only makes it double, 800 to an aircraft (to quote the Joint Action Committee of PIA employees known by its acronym JACPIAE). Downsizing is required but not a critical necessity, the challenge is to profitably employ the extra manpower. Mass downsizing must not be attempted without thinking the process through and taking steps to revitalize PIA, otherwise resultant “affirmative reaction” will be catastrophic for the airline’s operations, putting the “great silent majority” of airline staff who work hard for a living possibly out of a job. Why not get the educational qualifications, documentation etc of “lateral entry” political appointees verified, they seldom have qualifications commensurate to the job requirements. Just count the number of Parliamentarians caught with fake degrees!
The “open skies” policy made Pakistan a lucrative destination route for many airlines operating from UAE, Qatar and Bahrain but beggared PIA in the process. In contrast to 192 flights a week to destinations in Pakistan, PIA reciprocally operates only a handful with Boeing-737 aircraft. By increasing flights to these Gulf destinations and negotiating code-sharing arrangements PIA’s revenues would increase. JACPIAE says PIA would need 60-70 aircraft to run 160 flights a day, reducing the ratio to 257 employees per aircraft. Airlines must partially changeover every 10 years or so to newer aircraft. PIA’s fleet replacement (and augmentation) has been unduly delayed. Timely fleet replacement will increase revenues and profits.
Engineering hubs at Lahore and Islamabad are necessary, with 80% of PIA’s business being generated from there to Europe, USA and Canada, checks at the Karachi engineering facility require ferrying of aircraft consuming 15% of PIA’s budget. Considerable revenue is also lost with every flight carrying tools and spares in a 750 kgs pack. Fuel consumes 60% of the budget against the industry standard of 45%, rationalizing some routes will increase fuel efficiency. Snacks only for flights less than 2 hours is economically sensible, full service meals on 2-hour flights was criminal. Without a flight kitchen in Lahore catering by a 5-star hotel is costly, Lahore caterers can deliver better quality food at less than half the cost.
The catch-22, with downsizing induction of aircraft will not translate into profits but the surplus manpower could be gainfully adjusted by out-of-the-box thinking. PIA must be made lean and efficient gradually. Services like security, cleaning, catering, transportation etc should be farmed out to the private sector or better still, spun off as independent corporate entities with at least 49% shares earmarked for employees. Compare the seat factor, what was average aircraft utilization in any given period? And the utilization of cockpit crew? What was capacity utilization in terms of both passenger and cargo that PIA has to show when compared to earlier years? Cargo business must offset passenger revenues, other airlines are running frequent cargo flights out of Pakistan at cost of PIA’s revenues. What effort is being made to re-vitalise the engineering department so that it can take in jobs from other airlines as it once did?
With many comparable turbo-props available, ATR 42-500s to replace the versatile Fokker-27s was not a wise decision, its configuration does not fulfill the role assigned to it. Why go for outright purchase when competitive lease and securitization options are readily available? NAB’s enquiry into corruption in PIA was about to indict some senior PIA officials when for some unknown reason Munir Hafeez (then Chairman NAB) called off the enquiry. We prosecute junior and middle level PIA staff for petty crimes but the big ones who have caused colossal damage to the airline go scot-free. Cronies were in absolute power during the Musharraf years, the PPP regime’s five years were PIA’s worst, symbolized by pilot Captains Ejaz Haroon and Salim Yusufzai, disasters as Managing Directors in all senses of the word. Some senior PPP stalwarts specializing in junior airhostesses. The airline spiralled downwards on a one way road to destruction, was it done deliberately to provide space to “Indus Air”, or sheer incompetence force-multiplied by rampant nepotism and corruption?
Severe politicisation over the years and undue interference from influential persons destroyed the sanctity of PIA’s much vaunted corporate culture. Once emulated in Pakistan as a corporate model, today PIA’s management is well below par. Marketing executives normally project feel-good statistics, what separates them from magicians is that marketing gurus create perceptions and magicians create illusions, perceptions must still embellish facts, illusions have no substance. PIA’s professional management, both in tactical and strategic planning, was replaced by “spur of the moment” decision-making motivated mostly out of individual interests and without an in-depth study of economic feasibility based on data from an effective accounting package. Instead of management controlling expenditures, the expenditures have soared in increase of management personnel and its associated overheads.
Instead of excellence based on teamwork, PIA today is a case study of intrigue versus excellence. The “patronage” groups are a minority compared to the vast “silent majority” who labour to keep the airline running. Those appointed/promoted because of nepotism and favouritism always have an inferiority complex compared to the ones with merit. What the hapless majority fear (and endure) is genuine, if they are brilliant and/or competent, merit becomes a disqualifier whichever group comes into executive authority. Opting for survival simply out of economic compulsion of safeguarding their jobs, not surprising to see some of them fall in line with the crooks. PIA needs managers who are honest and professionally competent, capable of taking timely decisions.
One is extremely proud of PIA’s pilots and cabin crews, they are still among the best in the world, what is being done for them? PIA’s in-flight service may be good or bad, this depends mostly upon the Flight Pursar. The food is sometimes indifferent, sometimes good, the interior of the aircraft is reasonably clean without being extraordinary, some of the airlines’ seats need better maintenance. PIA’s various problems notwithstanding, the courtesy and hospitality in the air and on the ground is still very much visible. Despite their limited means and present state, give me PIA anytime!
Courtesy: The News
