Loss due to accidents of aircraft - PKR 2,796.2 million
Section (4) (3) of Public Sector Companies (Corporate Governance) Rules - 2013 states that the Chief Executive is responsible for implementation of strategies and policies approved by the board, making appropriate arrangements to ensure that funds and resources are properly safeguarded and are used economically, efficiently and effectively and in accordance with all statutory obligations.
During audit of Pakistan International Airlines Corporation Limited (PIACL) Engineering Department for the year 2019-20, it was observed that two aircraft of PIA faced severe accident and resulted in heavy loss due to complete destruction of aircraft.
The detail of incidents is as follows:
Aircraft: ATR 72-212a
Date of Incident: November 24, 2018
Place of Incident: Jinnah International Airport - Karachi
Estimated Loss: PKR 1.39 billion
Aircraft: ATR 42-500
Date of Incident: July 20, 2019
Place of Incident: Gilgit Airport
Estimated Loss: PKR 1.39 billion
Total estimated loss: PKR 2.7 billion
Findings of investigation reports for each incident reveals following causes:
Findings: Civil Aviation Report
Aircraft: ATR 72-212A
* Non-adherence of the laid down maintenance procedure by PIA.
* Deficiency in required maintenance support equipment at the organization level.
* Lack of professionalism of PIA maintenance crew.
* In-adequate assessment process for authorization of technical personnel for engine ground run-up of ATR aircraft.
Findings: Safety Investigation Report
Aircraft: ATR 42-500
* Failure to follow Standard Operating Procedure (SOP).
* Decision making error.
* Lack of situational awareness.
* Lack of assertiveness by the First Officer.
Audit is of the view that there is negligence on the part of PIA management which resulted in heavy loss to the airline.
Abbas
