PIA lays out plans for revival

ISLAMABAD: Pakistan International Airlines (PIA) has submitted short, medium and long term plans for overhauling the cash bleeding entity as under short term plan the top management has proposed closing down of PIA’s office in New York, abandoning loss making routes and providing half amount against total accumulated losses for achieving at break-even point in one year.

The PIA’s office at New York is bearing expenses to the tune of $13,000 per month but its customers’ base is quite low. “Without induction of new planes, the PIA’s revival will be quite difficult proposition,” said the official sources.

One year losses of PIA are standing at Rs24-36 billion so these hemorrhage needs to be plugged to make it a viable entity. The government and PIA’s top management have evolved consensus that the national flag carrier required comprehensive overhaul plan covering all aspects as piecemeal approach will not work as situation on ground touched now or never for this cash bleeding entity.

During the official meeting to prepare comprehensive plan for PIA, Federal Minister for Planning Ahsan Iqbal said that it was now life and death situation for PIA as poor nation of over 200 million people could not afford loss making PIA.

He expressed his severe reservations over the non-seriousness attitude of PIA top officials and said If there would be no will shown by PIA to make it a reliable airline, other options would be considered as a consequences.

However, he did not explain meaning of ‘other options’ as the government had already abandoned privatization plan. The minister said that non-professional approach, poor management, practices, and lack of seriousness led to the downfall of Pakistan International Airline (PIA).

He expressed these views while chairing a meeting of special committee formed by the ECC to bring structural reforms in PIA and make it a profitable organization. 

The meeting was attended by special assistant to the prime minister on revenue Haroon Akhtar, secretary finance Tariq Bajwa and chairman Board of Investment Miftah Ismail, officials of Civil Aviation Authority, CEO PIA, Director HR (PIA) and other board members. Federal Minister stressed that for achieving turn around for PIA to take place, each and every stakeholder has to be part of the mission. He said that employees and unions would have to demonstrate their full commitment with full ownership.

The CEO PIA during his presentation agreed with the federal minister of planning that it is now or never for PIA. He presented short term plan that focused on 'safety, product improvement, network expansion, fleet induction, closing the cash flow gap, restructuring the balance sheet and funds requirement'. He further said that stability of leadership was the most essential item to achieve all these goals.

The short term plan was reviewed by the committee, and Minister of Planning said that he likes to see numbers and concrete data so that committee can make concrete suggestions. From sales of tickets to promotion, pre-travel facilities to check in, lounges to cabin crew, in flight facilities to in flight meals and ground handling, everything needs a complete revival, said the federal minister. The next meeting was scheduled on 17th February 2017 for further action.