To give the exercise a try, at-least four directors are likely to be axed, which include Corporate Planning Director Rasheed-ul-Hasan, Co-ordination Director Anwar Rasool, Information Technology Director Nadeem Akram and Works and Sports Director Colonel Mudassar.
According to unofficial calculations, in Pakistan the PIA competes with 20 foreign and three Pakistani private airlines on all international routes originating from Pakistan. The PIA's share of international traffic is about 50 percent. According to 2003-04 figures, the total annual international traffic is about 5.6 million passengers.
In comparison, Indian national carriers are competing with 60 foreign airlines and carrying about 40 percent of the total annual international traffic of 14.5 million passengers, according to 2003-04 figures available here.
PIA downsizing under study
IQBAL MIRZA
KARACHI (August 12 2005): Various options are being considered to downsize Pakistan International Airlines (PIA) in order to run the national carrier on commercial basis and give it a real corporate look, a well placed source in the PIA told the Business Recorder here on Thursday.
The management has adopted a cautious approach in moving towards that direction, which it prefers to call "restructuring and reorganisation" of the national carrier to avoid possible employees' reaction.
To give the exercise a try, at-least four directors are likely to be axed, which include Corporate Planning Director Rasheed-ul-Hasan, Co-ordination Director Anwar Rasool, Information Technology Director Nadeem Akram and Works and Sports Director Colonel Mudassar.
Flight Services Director Umar Ghafoor is likely to be sent back to the engineering department as the chief engineer. Last week General Services Director Salman Jawaid and Airport Services Director Colonel (Retd) Ahsan Siddiqui were given a hand-shake with full pay and other benefits upto the age of superannuation.
The PIA management is translating its decisions into actions in a low profile. It has instead of announcing voluntary retirement schemes like golden handshake and mandatory retirement, considered it more advisable to move in phases. It has started from the top to watch the extent of fall out of downsizing.
The PIA had always been considered a top heavy organisation and a dumping ground for the favourites of bureaucrats and politicians. Presently there are 14 directors and 20,000 regular employees besides 2,000, who are engaged on contract basis. The employee-aircraft ratio is probably one of the highest found anywhere in the world.
The government employees from different ministries having no knowledge of commercial aviation maneuver their postings in the PIA for joy-ride and so also political leaders and parliamentarians oblige their workers by finding lucrative postings for them.
Experts in the aviation field commenting on the situation said efforts in the past to rejuvenate the PIA, which was considered a sick and dilapidated organisation, had failed, how far present efforts would succeed would be anybody's guess.
They said the need to put the PIA on the right track was more today than ever before because the government had opened up international routes for private airlines where the PIA had thus far enjoyed absolute monopoly.
A level playing field has now been provided to private carriers who had shown grit, determination and dynamism in a very short period of time. This was necessary for giving a boost to aviation industry, which had lagged behind in the developments, taking place in and around Pakistan in this sophisticated field.
The government intends to move fast and follow the road map, which is already their, ie national aviation policy 2000, with minor adjustments. Ever since its announcement, the PIA had lobbied covertly to stall its implementation but the world scenario has changed and the government seems in no mood to rescue the national carrier any more. It must stand on its own feet and prepare itself to meet the impending competition, they said.
According to unofficial calculations, in Pakistan the PIA competes with 20 foreign and three Pakistani private airlines on all international routes originating from Pakistan. The PIA's share of international traffic is about 50 percent. According to 2003-04 figures, the total annual international traffic is about 5.6 million passengers.
In comparison, Indian national carriers are competing with 60 foreign airlines and carrying about 40 percent of the total annual international traffic of 14.5 million passengers, according to 2003-04 figures available here.
Experts believe the interests of users will be best served if airlines are free to operate air services in competition with one another according to their commercial judgement. To serve the long-term interests of the users full liberalisation of international aviation markets, involving the removal of all bilateral restrictions, was urgently needed so that the airline industry could compete on the same footing as other industries, they said.
Source: Business Recorder
