Sad story of PIA

[WishLivePak]

LAHORE: This is in reference to Kamal Siddiqi’s article (July 7) about CEOs heading public-sector corporations and his reference to two unique and rare people from the uniformed services, General Sabeeh and AM Nur Khan — both men of integrity — who successfully ran the Pakistan Steel Mills and the Pakistan International Airlines (PIA) because the government gave them a free hand to deliver. Unfortunately, both these corporations, in spite of their vast revenue potential, have been reduced to white elephants by corrupt, incompetent, politically-appointed managements, who considered it kosher to facilitate their cronies through abusing their authority and doling out thousands of jobs.

Airlines in the Gulf region and Turkey have huge fleets, but not enough passengers within their local markets, and as such seek to maneuver a powerful corrupt bureaucracies and governments in countries like Pakistan to surrender routes, grant one-sided traffic rights, etc. For instance, just as the PIA managed to build up traffic and generate revenue on Houston or Chicago flights, it pulled out, only to see specific Gulf airlines stepping in to fill the void. Why should PIA surrender peak time slots in Dubai so as to facilitate another airline? It makes no commercial sense to buy long-range B-777 and embark on plans to reduce PIA to serve as a spoke feeding Turkish Airlines for onward flight to the US, Europe, etc. This does not constitute code sharing, which is on reciprocal basis to facilitate partner airlines on routes where they do not operate.

You just cannot slip into a job of an airline CEO, other than by working up the corporate ladder, having spent considerable time in management structures — with experience in finance, marketing or engineering. After all, Richard Branson — himself a pilot — decided to hire the best CEO available to head Virgin Atlantic.

Nur Khan had the advantage of taking over PIA from Rafique Saigol, who resurrected an airline in shambles inherited from air vice marshall Zafar Chaudhry, and the fact that Zulfikar Ali Bhutto gave him a free hand. He was a disciplinarian and someone with compassion, who encouraged trade union activities and had no skeletons in his cupboard. His tenure was free of financial irregularity, or allegations of awarding lucrative catering contracts, or kickbacks in procurement and fleet induction deals, or the awarding of General Sales Agents. He recruited the best based on merit, embarked on an ambitious fleet and routes expansion plan, which lead to growth in revenue and profitability. It was grossly unfair to compare his tenure with that of Aijaz Haroon, a nominee of Zardari, during whose tenure PIA accumulated staggering losses; thousands with fake degrees were hired while the PIA routes and fleet shrank in size.

Ali Malik Tariq

-----


Pakistan: Air routes for sale!

 

[FunkyGen]

LAHORE: This is in reference to Kamal Siddiqi’s article (July 7) about CEOs heading public-sector corporations and his reference to two unique and rare people from the uniformed services, General Sabeeh and AM Nur Khan — both men of integrity — who successfully ran the Pakistan Steel Mills and the Pakistan International Airlines (PIA) because the government gave them a free hand to deliver. Unfortunately, both these corporations, in spite of their vast revenue potential, have been reduced to white elephants by corrupt, incompetent, politically-appointed managements, who considered it kosher to facilitate their cronies through abusing their authority and doling out thousands of jobs.

Airlines in the Gulf region and Turkey have huge fleets, but not enough passengers within their local markets, and as such seek to maneuver a powerful corrupt bureaucracies and governments in countries like Pakistan to surrender routes, grant one-sided traffic rights, etc. For instance, just as the PIA managed to build up traffic and generate revenue on Houston or Chicago flights, it pulled out, only to see specific Gulf airlines stepping in to fill the void. Why should PIA surrender peak time slots in Dubai so as to facilitate another airline? It makes no commercial sense to buy long-range B-777 and embark on plans to reduce PIA to serve as a spoke feeding Turkish Airlines for onward flight to the US, Europe, etc. This does not constitute code sharing, which is on reciprocal basis to facilitate partner airlines on routes where they do not operate.

You just cannot slip into a job of an airline CEO, other than by working up the corporate ladder, having spent considerable time in management structures — with experience in finance, marketing or engineering. After all, Richard Branson — himself a pilot — decided to hire the best CEO available to head Virgin Atlantic.

Nur Khan had the advantage of taking over PIA from Rafique Saigol, who resurrected an airline in shambles inherited from air vice marshall Zafar Chaudhry, and the fact that Zulfikar Ali Bhutto gave him a free hand. He was a disciplinarian and someone with compassion, who encouraged trade union activities and had no skeletons in his cupboard. His tenure was free of financial irregularity, or allegations of awarding lucrative catering contracts, or kickbacks in procurement and fleet induction deals, or the awarding of General Sales Agents. He recruited the best based on merit, embarked on an ambitious fleet and routes expansion plan, which lead to growth in revenue and profitability. It was grossly unfair to compare his tenure with that of Aijaz Haroon, a nominee of Zardari, during whose tenure PIA accumulated staggering losses; thousands with fake degrees were hired while the PIA routes and fleet shrank in size.

Ali Malik Tariq

-----


Pakistan: Air routes for sale!

Dear Sir, I'm against nationalism/socialism or whatever it's called, Capitalism is the way for Pakistan.

 

[WishLivePak]

Dear Sir, I'm against nationalism/socialism or whatever it's called, Capitalism is the way for Pakistan.

I didn't write article.

I support capitalism but there must be gov't involvement to an extent. For example, Air Canada does not allow more than 3 weekly flights to Emirates in entire Canada. This way Air Canada continues to grow and serve key markets. Meanwhile Pakistan allows some 70 weekly flights for only Emirates, forgetting Qatar, Arabia and so forth. Since they've greater choice of jets, they can offer cheaper airfare.

There should be some regulation for routes. For example, if Emirates visit 70 times a week, it should be reduced to 60/40 basis, 60% Emirates and 40% PIA. Further, slots should not be used to limit Emirates as they then will use A380s.

Again, capitalism is good but it sucks blood when left unchecked. Businesses are there to make money, but national interests must also be served.

 

[Bouncer]

I didn't write article.

I support capitalism but there must be gov't involvement to an extent. For example, Air Canada does not allow more than 3 weekly flights to Emirates in entire Canada. This way Air Canada continues to grow and serve key markets. Meanwhile Pakistan allows some 70 weekly flights for only Emirates, forgetting Qatar, Arabia and so forth. Since they've greater choice of jets, they can offer cheaper airfare.

There should be some regulation for routes. For example, if Emirates visit 70 times a week, it should be reduced to 60/40 basis, 60% Emirates and 40% PIA. Further, slots should not be used to limit Emirates as they then will use A380s.

Again, capitalism is good but it sucks blood when left unchecked. Businesses are there to make money, but national interests must also be served.

I don't think airlines decide on flight slots in to a country. These things are decided by Gov bodies like CAA. Its their job to protect national interests.

 

[airmarshal]

PIA is run by politicians and their cronies. This trend has been going on forever. Whenever a political party gets power, it molests national institutions.

This govt is no different. It appointed Shujaat Azeem, who is a nobody in airline business, without merit or whetting to advise our wise PM on airline and CAA. Now this is a butt of jokes. How can one be out there to reform airline and its regulator (CAA)? This govt does not even know the meaning of 'conflict of interest'.

PIA has been reduced to regional airline since the corrupt govts of PPP and now PMLN took power. From 2008 onwards, PIA has been battered by corruption and cronyism. It was not much better before that but at least it worked like some sort of an airline. Now its not even that!

 

[WishLivePak]

I don't think airlines decide on flight slots in to a country. These things are decided by Gov bodies like CAA. Its their job to protect national interests.

Air Canada has a say here. For example, Emirates wanted to serve west Canada. Air canada strongly advised against saying it is them who improve airports, not emirates.

CAA and PIA both r corrupt