A Business Plan prepared by an IATA consultant hired by PIA, has been submitted for implementation between 2022 to 2026 which is based on expanding revenue passengers from 5.2million to 9 million per annum.
Due to ban imposed by EASA and the resultant loss of credibility and passengers confidence, this Business Plan seems to be an uphill task, said some aviation experts.
They are of the view that under the prevailing aviation policy, where under the garb of Open Skies, foreign airlines have been given permission to operate from all major northern hubs like Islamabad, Lahore and even Peshawar, increase in revenues and number of passengers is very difficult.
There are no restrictions on foreign airlines on number of passenger and frequency of flights they operate, which makes achievement of these targets uphill task. Such traffic rights are given on reciprocal basis, safeguarding the business interests of local aviation industry.
The plan envisages increasing current estimated weekly round trips from 358 to 581 per week and seeks to increase assets from $1.196Bilion to over $2.183Billion by 2026.
It envisages fleet expansion from current 29 aircraft to 49 by 2026, consisting of 16 wide body large aircraft, 27 medium range aircraft and 6 Turbo Prop. The Auditor General of Pakistan in his report suggests that the government must undertake financial restructuring to offset PIA’s Legacy Debt.
PIA’s Total Accumulated Losses as on 30 June 2021 are in excess of Rs541.56Billion. The present management’s performance can be gauged from the fact that from July 2018 to June 2021, the Federal Government has provided markup support for debts taken by PIA to the tune of Rs63.857Billion, because airline faced risk of aircraft confiscation at various international airports. Current Liabilities of PIA exceed total assets as on June 2021 by Rs258.986Billion.
The only Business Plan that was ever realized was in the days of Nur Khan, when both fleet and flight frequencies increased and so did revenues, while the Federal Government ensured that traffic rights to foreign airlines were granted on reciprocal basis, safeguarding the commercial interests of national airline.
Thereafter every management submitted an over ambitious Business Plan which was never implemented because of a host of factors, ranging from political interference, irregularities in fleet induction, leasing of aircrafts and pilferages in procurements of essential spares and an aviation policy which was detrimental to commercial interests of Pakistan based airlines. PIA’s golden period was during the tenure of ZAB after 1971 debacle.
He first appointed AM Zafar Chaudhry as MD who suggested drastic reduction in fleet, routes, number of employees. The PM removed AM Zafar Chaudhry and requested Rafique Saigol to take over and restructure the airline. It goes to the credit of ZAB that he gave full powers to both Saigol and Nur Khan with assurances of no political interference.
After RS had set PIA on track, he left the airline and Nur Khan took over. It is also a bitter fact that within 6 months of Zia’s takeover Nur Khan resigned because of political interference. PIA’s decline started thereafter when AVM Viqar Azeem took over as MD and Gen Rahim as Chairman.
AM Nur Khan understood that commercial aviation is a highly regulated service -oriented industry, while military aviation is a security oriented disciplined organization working under a command-and-control structure.
The two had nothing in common except flying. It goes to the credit of Nur Khan that he did not bring any other uniformed colleague from PAF and selected a team of qualified professionals, well versed in the intricacies of commercial aviation.
Both Saigol and Nur Khan enforced strict financial discipline and ensured that merit and transparency prevails in recruitment, postings, procurement and fleet planning. Corporate ethics, like Conflict of Interest, audit controls and transparency were enforced by Federal Government and PIA.
When Nur Khan wanted to appoint Enver Jamal, a veteran in commercial aviation from the days of Orient Airways, the Federal Government objected because EJ’s family had a garment industry which supplied uniforms to PIA. Enver Jamal and his family had to disassociate from any commercial transactions with PIA and it was only after over 6 months did the PM approve his appointment.
As compared to this, AM Arshad Malik awarded a contract to an unknown firm owned by his colleague who had no experience, nor any approval from ICAO etc. PIA advertised in May 2019 for award of Rs700Million contract for development of indigenous IFE for its fleet of 8 B777. One Singapore based airline and an Islamabad based MS Avionics Solution applied.
PIA management rejected the foreign company and awarded the contract to Islamabad based company in July 2019, which was registered in March 2019 and did not have mandatory approval of the manufacturer Boeing. This jeopardized both safety and insurance coverage.
The plan demands aggressive marketing strategy, good maintenance, improved services, consumer friendly sales and reservation system under a professionally capable management, well versed in the intricacies of commercial aviation and requirements to meet safety concerns of international civil aviation regulators of every country they overfly or land enroute. Given the ban imposed by EASA on 1st July 2022 on all flight operations to Europe by all Pakistan CAA regulated airlines, this Business Plan is a non-starter to begin with.
The ban by EASA continues despite ICAO satisfactory report, till such time they have carried out an audit of Pakistan CAA regulatory capabilities and competence to issue licenses to pilots, engineers, technicians etc., and its professional capacity for oversight and regulation of all aviation related infrastructure, navigational aids, airports, mandatory safety requirements and security related issues. The ILS3 installed at Lahore airport to facilitate low visibility instrument landings is either unserviceable or declared on test basis for almost two years now.
The two parallel runways built at New Islamabad Airport with approval of PCAA, cannot be used for simultaneous arrivals and departures, because mandatory spacing is less than required, because of incompetence and lack of experience and knowhow of CAA officials who approved the design.
This self-inflicted damage of EASA ban on Pakistan’s commercial aviation was triggered by the irresponsible statement of Aviation Minister on the floor of NA where he stated that over 200 pilots had dubious licenses in response to questions related to the A320 crash on approach to Karachi, when it collided with an over 3storey building within the restricted zone that imposes height restrictions to meet one engine failure performance, which were not enforced by CAA.
There was absolutely no need for raising the issue of dubious licenses in the NA, except perhaps to cover up CAA’s criminal negligence. All that was needed was that DGCAA cancel or suspend their licenses pending investigation as is the practice all over the industry.
It is an established fact that over a period of time CAA Pakistan has become an organization reduced to rehabilitate retired uniform officers, with no experience in commercial aviation or familiarity with civil aviation regulations, laws and knowledge to meet regulatory control of all countries over which it overflies or lands enroute in addition to civil aviation regulations of its own country.
