PIA Invites Bids for development of indigenous In-flight Entertainment (IFE) solution for Boeing 777 Aircraft

[fawad]

Well it is nearly six months since the announcement was made and I think not a single aircraft has functioning IFEs.

The CEO said all aircraft will be equipped with such equipment, what happened the government dished out 70 crores for the project.

Assuming they went through with the plan and a local firm is/will be hired, it takes time to develop software, test it, and get it certified. It is not like local firms had an IFE system readily available for installation. If someone can manage it, it will be good because the next time they will have one readily available.

[Abbas Ali]

Vested interests targeting PIA’s new IFE

January 17, 2020

Sultan M Hali

PAKISTAN International Airlines (PIA) has been in the doldrums far too long due to poor management and corruption. An Airline, which once boasted to be one of the world’s foremost air carrier and established some of the other global air transport systems, went downhill because the vision of its founding fathers like Air Marshals Nur Khan and Asghar Khan was allowed to wither away. Resultantly, the flagship carrier was close to bankruptcy when the PTI government assumed the mantle of power. One of the bold steps it took was to appoint an upward mobile PAF officer to lead PIA and stem the rot. Air Marshal Arshad picked up the gauntlet but did not know where to begin. Overstaffing, air and ground crew holding bogus qualifications, ghost employees that saddled the profitability and viability of PIA, poor maintenance systems, missing inflight entertainment (IFE) systems and dilapidated aircraft along with the totalitarian rule of labour unions were some of the challenges the new management faced. To top it all, Air Marshal Arshad’s appointment was challenged in Sindh High Court, which restrained him from functioning as CEO till January 22.

Internal politics aside, Arshad, whom this scribe has had the honour to teach at the PAF Academy, has sterling qualities of management and control, which he exhibited when he was the Chairman of Pakistan Aeronautical Complex Kamra. Bold decisions were taken by him to turn around the airline, which was in a tailspin, rapidly spiraling downwards. Vested interests were keen to rundown the once topnotch airline so that it could be sold for pittance and grabbed up by vultures. Some politicians who owned private airlines, viewed PIA as competition, wanted to eliminate the air carrier to pave the way for their own organizations, when they were in power.

The removal of aircrew with fake degrees was also challenged in court. The plea taken was that university degrees have nothing to do with flying airplanes and if a pilot had a valid flying license, it did not matter if he or she had a bogus academic degree. This scribe participated in numerous TV debates on the subject, where the Collective Bargaining Agents representing the pilots removed for possessing fake degrees, were arguing that since the airline had spent so much money on the flying training of the pilots, even if they had bogus degrees, they should be retained. Efforts were made to improve the standards of maintenance of PIA aircraft, acquire airworthy platforms, improve onboard catering and enhance the hospitability of the air and ground crew. Another aspect in which PIA aircraft were lacking was the Inflight Entertainment Systems (IFE), which are systems of entertainment that provide a choice of movies, news, music and games to passengers. These are now a standard feature of modern airlines and are considered essential for long haul flights to Europe and USA because passengers–-especially families with children—become bored and need activities to keep them occupied. PIA already had the edge over competitors like Emirates, Qatar, Etihad and Turkish airlines because these had to route to Europe, USA and Canada via their respective hubs of Dubai, Doha, Abu Dhabi and Istanbul. PIA offered direct flights to destinations in USA, Canada and Europe but suffered the handicap of being devoid of IFEs.

Air Marshal Arshad picked up the gauntlet to resolve this issue and adopted the prescribed procedure to acquire IFEs for PIA flights. According to reliable sources, two companies were shortlisted: AAR International Corp (Singapore) and Avionic Solutions Private Limited (Pakistan). Both were shortlisted because they met the requisite criteria. It was an open transparent tender; its evaluation criteria and its results were both published beforehand on the PPRA website as per Rule 35 of Public Procurement Rules. The bid results, available at PPRA website, clearly show that M/s Avionic Solutions with its bid of PKR 699.916 Million was much lower than the other company M/s AAR International Corp with PKR 2.786 billion bid. It was an open tender, with financial bids opened in presence of both the parties. Given the much lower bid by Avionics Solutions (Approx. Rs 70 crore vs. Rs 2.8 billion by M/s AAR International) contract was awarded to M/s Avionic Solutions in July 2019.

This open and fair decision should have been welcomed by all and sundry but not the vested interests, who want to rundown PIA. Not only was it made a controversial issue, but flimsy objections were raised that Ms Avionics is a new company, has not been in business for long and is owned by an ex-PAF officer. The objectors pointed out that since the company is new, its provisions of IFE will be defective or unsafe for Boeing planes and M/s AAR, the Singapore based company had 70 years of experience in the aviation industry.

The detractors forget that the contract to M/s Avionics has been awarded on the strict condition that IFE system will only be accepted after due certification from international bodies like FAA (Federal Aviation Administration of United States) European Aviation Safety Agency (EASA) and Civil Aviation Authority (CAA) of Pakistan. Additionally, the manufacturers of the air platforms will also have to approve the reliability and suitability of the onboard system, before the IFE becomes operational. Thus their trivial demurrals must be disregarded. It is hoped that PIA once again becomes the airline, which once upheld its slogan of “Great People to Fly With” and proves to be an asset for Pakistan.

The writer is retired PAF Group Captain and a TV talk show host.

Source: Pakistan Observer

[Amaad Lone]

This open and fair decision should have been welcomed by all and sundry but not the vested interests, who want to rundown PIA. Not only was it made a controversial issue, but flimsy objections were raised that Ms Avionics is a new company, has not been in business for long and is owned by an ex-PAF officer. The objectors pointed out that since the company is new, its provisions of IFE will be defective or unsafe for Boeing planes and M/s AAR, the Singapore based company had 70 years of experience in the aviation industry.

I think I was the first guy to object to this 700 million award on my Facebook account from where a number of people shared it and it went viral on many aviation forums and aviation pages on Facebook.

What vested interests?? today in Pakistan if you talk fair you are called a person with vested interests and a traitor.

In order to carry out IFE work on a 777 you have to be certified by European and American authorities which this company was not. When I raised the objection this company did not even have a website. You are awarding a contract to a company without a website. Then few days later a flimsy website showed up. Ms Avionics is bullshit and not quality work would have come out of this.

[Amaad Lone]

M/s AAR International of Singapore was carrying out a much more detailed upgrade of the cabin IFE system and its a Boeing FAA and European Aviation Safty Association certified company to carry out work on the 777.

MS Avionics something is a fraud and is a front man for retired airforce people who are greedy and want to make money.

Just remember what happened to the Swissair MD11 that crashed in New York, the first started from the club class IFE system that was installed later on.

BTW what happened to that 70 crores sanctioned in July, all work on the 8 777s was suppose to be completed by january and I think not a single aircraft has been upgraded. PTI zindabad Pakistan zindabad.

[baberblues]

M/s AAR International of Singapore was carrying out a much more detailed upgrade of the cabin IFE system and its a Boeing FAA and European Aviation Safty Association certified company to carry out work on the 777.

MS Avionics something is a fraud and is a front man for retired airforce people who are greedy and want to make money.

Just remember what happened to the Swissair MD11 that crashed in New York, the first started from the club class IFE system that was installed later on.

BTW what happened to that 70 crores sanctioned in July, all work on the 8 777s was suppose to be completed by january and I think not a single aircraft has been upgraded. PTI zindabad Pakistan zindabad.

They're pulling the money leafs off the tree for this one!

[Abbas Ali]

PIA awards Rs700m contract to dubious company

ISLAMABAD:- In a scandalous deal, the Pakistan International Airlines (PIA) have awarded a contract of Rs700 million for the up-gradation of In Flight Entertainment (IFE) in eight Boeing 777 aircraft to a local company which was registered only two months before the tender was floated.

A retired Pakistan Air Force officer, Group Captain (R) Khawaja Moizuddin, is the owner of that company, M/s Avionic Solutions Private Limited. It was incorporated with a capital share of Rs100,000. He is said to be a close friend of PIA CEO, Air Marshal Arshad Malik. The PIA spokesman termed the allegation “highly unfair and absurd.” Malik is presently under suspension on the order of the Sindh High Court after a petitioner challenged his appointment.

Avionic Solutions, according to PIA spokesman, has extensive commercial and military avionics modifications and technical support experience and are working with local and international players. However, this claim is in contrast with the details mentioned in the documents available with The News. They indicate the company was registered only in March last year, two months before the tender was floated by PIA in which Avionic Solutions participated and won. M/s AAR International Corporations of Singapore, with 70-year experience in the relevant field, was another company that participated in the bid and lost.

Other than Khawaja, his wife and daughter, a student, are Directors of the Avionic Solution. By the time of participation, it had not filed a single tax return, annual report and there was no auditor to look after its accounts. The PIA’s spokesman initially said that Avionic Solutions was not a newly formed company and later said Terms of Reference designed for the purpose didn’t specify how much experience the company should have. When asked that TORs might have been tailor-made to oblige a particular bidder, he said PIA wanted “indigenous solutions” of IFE and there is no local company having relevant experience. He said the service provider will be paid only after its products are certified to be fit for the purpose.

The IFE is a digital entertainment system consisting of audio and visual gaming as well as other material designed to entertain the passengers, especially during flights. It is used as a marketing tool and is considered a need for the modern airline industry. Installation and up-gradation of IFE is a highly technical job and needs certification of the European Union Aviation Safety Agency and Federal Aviation Authority of the US Department of Transportation.

Out of eight aircraft selected for up-gradation, three are 16-year old, two are of 14-year and another two have a life of 11 and 12 years respectively. As per aviation policy, no aircraft can be operated after 20-year life. Major airlines like Emirates have phased out the above series of Boeing 777 aircraft and most airlines have a policy of using aircrafts not older than 12 year as per average as prohibitive maintenance is required on fleet older than 15 years.

In the case under question, tenders were invited in June and two companies participated: AAR International Corporation which was registered in 1951 and Avionic Solutions which was only two-month-old at the time of floating tender. Incidentally, PIA’s Chief Financial Officer Khalilullah who signed this award to Avionic Solution was also hired in the month when a tender was floated. Avionic Solutions, the winner of the Rs700 million project, doesn’t have any experience of carrying out such a project, a fact admitted by PIA spokesman who was initially of the view the winner has “extensive experience.” The company was registered on the same date (March 18, 2019) with the Securities Exchange Commission of Pakistan and the Federal Board of Revenue.

When asked if this is true that it was a family-owned company where a family head has appointed his wife and daughter its directors who don’t have any experience, the spokesman said Avionic Solutions is a private limited company including partners from the family which “is a common practice in Pakistan.” To another question that whether it is true that the company was set up just two months before the floating of tender, the spokesman said “the evaluation criteria required a registered company which it was at the time of bid submission.”

He said TORs required a solutions provider that can provide an indigenous cost-effective solution. The mandatory requirements were of a company that is registered with local companies and taxation regulators and could provide components, services, and support in compliance with FAA Part 21 and PCAA certifications, he said. Asked then why PIA allowed a foreign company to participate in the bid if a local company was required for “indigenous solutions”, he said the foreign company had a local representative.

Source: The News

[Abbas Ali]

Supreme Court Justice Sajjad Ali Shah also raised concerns over reports that a bid worth Rs70 million was awarded to an air commodore.

https://www.dawn.com/news/1529693

[arshad.altaf]

If the report of contract award is published in two credible newspapers then it must hold some truth in it. Such a shame and dishonesty. All the talk about reviving the airline and his message not so long ago on 65th birthday of the airline where he said that the airline's downfall was due to poor political decisions. Pity!

Arshad

[Abbas Ali]

The award of Rs 700 million contract for up-gradation of in-flight entertainment (IFE) in eight ageing Boeing 777 aircraft to a local company by Pakistan International Airlines (PIA) echoed in National Assembly on Friday.

Through a calling-attention notice, Pakistan People's Party (PPP) MNAs Raja Pervez Ashraf, Jam Abdul Karim, Agha Rafiullah, Abdul Qadir Patel and Mehreen Razzaq Bhutto grilled the government for awarding Rs 700 million contract to a ‘suspicious' company.

Patel said the local company which managed to get the contract was registered only two months before the tender for the project was floated.

Raja Pervez Ashraf said he was skeptical that company could be owned by the same person under different names in a bid to get millions of rupees contract.

Responding to calling attention notice, Federal Minister for Aviation Ghulam Sarwar Khan said that regular tenders were offered regarding provision of IFE during fight in 8 Boeing planes of PIA.

“No work order has been given to any company as the matter is sub judice and an inquiry has been ordered into the matter," he added.

Source: brecorder.com

[Abbas Ali]

Audit report seeks PIA reply within four weeks in the case of complaint pertaining to "Dubious financial deal of PKR 700 million at the cost of safety of thousands of passengers".

Document shown on news channels:



Abbas

[Abbas Ali]

Today, the Supreme Court of Pakistan was informed that the PKR 700 million contract for PIA Boeing 777 IFE solution was awarded according to merit.

Abbas

[Amaad Lone]

Yes the merit is that this company has not done this kind of work before

And the CEO of the company is a friend of the CEO of PIA, biggest merit.

Plus does it make sense to upgrade aircraft that already are 16 years old and have 62,000 plus hours. These planes will need replacement within five years, not a good idea.

[Abbas Ali]

After notice taken by the Supreme Court of Pakistan, Aviation Minister has formed a committee to investigate PKR 700 million contract given to a company for the development of indigenous In-Flight Entertainment (IFE) solution for PIA Boeing 777 aircraft.

According to PIA management, the company awarded with the contract has experience of upgrading avionics/electronics systems of Mirage combat aircraft of Pakistan Air Force (PAF).

A lawyer representing PIA had been asked to submit contract details to the Supreme Court of Pakistan.

Abbas

[pk363]

According to PIA management, the company awarded with the contract has experience of upgrading avionics/electronics systems of Mirage combat aircraft of Pakistan Air Force (PAF).


Abbas

عذرِ گُناہ بدتر از گُناہ کی اعلٰی مثال

[Abbas Ali]

Past glory

Soon after taking over, Air Marshal Arshad Malik as chief executive officer (CEO) of the Pakistan International Airlines (PIA) commenced a plan to rectify the corporation in a manner that it could be restored to its past glory. A number of measures were also taken up and from the day one he took over the affairs of the airline.

Referring to allegations that a multi-million contract awarded to a company which was incorporated a few months earlier, the report submitted to the Supreme Court explained that the said contract was given for the In-flight Enter­tain­ment System (IFE) for the development of the system indigenously in Pakistan.

Such systems can only be bought from certified vendors on a price settled by them and thus the airline was required to pay upfront billion of dollars.

But in the contract in question, the amount to be paid was Rs700 million with a requirement that the vendor will develop the project and obtain certification from the Boeing company at its own cost and that the airline will not make any payment to the vendor until he gets the certification.

Source: DAWN