Govt directs PIA to submit restoration plan by Jan 26

ISLAMABAD: Ahsan Iqbal, minister for planning and reforms on Saturday directed the senior management of the state-run Pakistan International Airlines (PIA) to develop a comprehensive two-year plan for its restoration by January 26.

The minister, while chairing a meeting of special committee formed by the Economic Coordination Committee (ECC) of the cabinet to supervise reforms of PIA, said the current year of “2017 will be the year of the restoration of the PIA.”

“It’s the last chance for employees and management to fix and turn around the airline because PIA can’t be allowed to become another Steel Mills,” Iqbal said in a statement.

“A clear and shared vision, strict adherence to merit, focus on human resource development, core functions and customer service and accountability are essential elements to make PIA a world class airline.”

The meeting was attended by minister privatisation commission, special assistance to the prime minister on revenue and senior officials of finance minister. Officials of Civil Aviation Authority have made presentation before the committee.

The minister said the airline has “strongest fundamentals yet it has become a loss making machine due to bad management and political interference in the past.”

“Without clear road map and business model no effort will succeed,” he added. “Accountability at all levels should be made compulsory, performance be measured continuously.”  The minister said financial health of PIA will be improved in 2017, besides improvement on all fronts. “Tangible outcomes are required and there is need of fleet to service master plan.”

Iqbal said a comprehensive plan of two years should be made, and initial plan should be presented by senior management by 26 January, so that it can be presented to the prime minister.

The minister said PIA can’t be run as a government department. “Loss making routes will be given attention, more aircrafts will be added, and customers should be brought back by better quality of service, punctuality and reliability,” he added.

The ECC, earlier this week, gave its consent for increasing the government of Pakistan’s guarantee limit for the airline by Rs10.5 billion – from Rs151 billion to Rs161.5 billion.

The proposal was given by the aviation division in order to cater to the immediate financial needs of the airline.