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What a fall from grace for an airline, which was once the pride of Pakistan. PIA had its moment of glory under Noor Khan or Rafique Saigol, when service to passenger was the prime objective and appointments were made on merit and there were hardly any political or Khaki nominees to key positions.
It was Noor Khan who ensured that unions were established in PIA, so that a system of checks and balances is maintained. There were no scandals or controversies involving key executives in revenue pilferage's in cohorts with travel or cargo agents.
PIA was not stigmatised with rumours of cutbacks in aircraft purchase deals or leasing, neither were there scandals involving pilferage of billions in spare parts procurement or flight kitchen items. PIA did not buy the Boeing 707, Trident, DC-10 or the Boeing 747, because of instructions from Islamabad, but because the choice of aircraft suited its passenger profile, route structure and affordability.
The airline had a trained and disciplined workforce, routes were planned and commercial interest of the airline was the primary objective. There was no parochial or ethnic lobby that dominated the airline's policies. They were all part of a family, with zero tolerance for corruption.
One could not imagine that an employee found guilty in financial indiscipline, gets suspended only to return back and resume with a vengeance. Things started going wrong when Zia-ul-Haq stuffed PIA with generals, brigadiers etc and on his instructions PIA sold brand new DC-10s via Page Avjet to Canadian Pacific, in return for old 747s, which had almost depleted their life.
This junk was grounded by PIA in 90s. From then onwards it is in a state of decline. PIA had an established revenue base in Saudi Arabia, UK, Far East (nicknamed Pearl Route) and the Gulf region. The airline head offices had few General Managers.
Recruitment was made in thousands with only a manager heading the section. Only key operational areas like Engineering, Marketing and Flight Operations had a GM, while the rest just had managers. Today with depleted revenues, and declining passenger/ cargo loads in key markets like Saudi Arabia and UK, the airline is top heavy and controversies are far too many.
Business Plans are submitted justifying purchase of an aircraft and repayment based on 30% projected rise in revenues, which never materialise because of incompetence and commissions. It is the same group or mafia that has submitted three Business Plans, all of which have failed with no accountability, because of powerful godfathers.
The aviation industry in Pakistan has undergone a major change with emergence of Open Sky Policy and opening of new corridors via the former USSR airspace. The Federal Government instead of taking firm corrective measures, has made PIA another backyard for retired old fellows rewarded with key executive assignments.
PIA has suffered because it has become a refuge for political benefactors with mediocre capability. Fudging of figures for sometime hid the extent of financial losses incurred till they were not manageable and could no longer be brushed under the carpet.
Poor management, no accountability and failure of Government of Pakistan to take key remedial measures without giving in to political interference has landed PIA in a fate, which befell PANAM.

Copyright Business Recorder, 2008

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