No plan for PIA

The decision by the PTI government to replace the Open Sky Policy with bilateral agreements on the basis of reciprocity with foreign airlines will go a long way in salvaging PIA, which is technically insolvent with total liabilities exceeding all assets. From restoring the confidence of the travelling public to attracting back lost loyal clientele, it will be an uphill task, which requires a management dominated by qualified professionals well versed in the dynamics of commercial aviation, passenger demands, importance of reliability of schedules and offering passengers a consumer-friendly on-line sales and computerised booking system.

While the few steps taken by the new management to enforce discipline – such as dismissal of a few fake degree-holders and ghost employees – must be appreciated, It is unfortunate that there seems to be no business plan for a change in state-owned enterprises like PIA. In times of national emergency, PIA has provided Pakistan with vital strategic logistics support. The ambitious proposed business-plan presented to the PM is not much different than previous such plans which failed to achieve revenue targets. The newly adopted Turkish GDS may be saving expenditures but it is causing serious issues in many areas. This will become an impediment in boosting passenger sales to achieve profitability or to break even. Most transactions are not reported in the revenue accounting system and incomplete transactions are being reported which may cause losses. This must be remedied. Issues with HITIT Reservation must be resolved on priority to effectively manage ongoing sales and reporting to Revenue Management System RMS.

Malik Tariq Ali

Lahore