Adil Najam
As we continue with our series on devising a new growth strategy for Pakistan, one cannot but think of the PIA fiasco being played out at airports all across Pakistan. Part of any growth strategy would be dealing with institutions like PIA, deciding what to do with and to them, and taking and implementing some tough decisions. Take a look at Pakistani airports today and you will realize that tough decisions are tough everywhere, but much tougher in Pakistan today. And, frankly, there are many good reasons why.
As everyone remains consumed in the politics of the moment around the PIA stoppage and strikes story, we wanted to invite you to look beyond the moment. What would YOU do if you had to manage PIA, reform PIA, and how would (and should) this figure into Pakistan’s new growth strategy?
In some ways PIA is a really good example because it effects so many of us in very real and immediate ways. Certainly, it does for me – I am supposed to fly PIA from New York to Lahore early next week and at this time wondering what is in store for me. But the problems are bigger than our immediate discomforts. Indeed, the deal with the Turkish airline and the reasons for the current management woes and strikes are all indicators of rather than the real cause of the malaise.
PIA is a storm that has been brewing up for a long time – chronically bad management, over-staffing, politicization, inefficiency, a culture of entitlement, creeping technical incompetence, infrastructure falling apart. None of this is new and none of this will go away even if the current strikes are “resolved.”As far back as November 2006, we at ATP were asking: ‘Can PIA Survive?’
So, what will it take to really and truly “resolve” the PIA crisis within the context of a national growth strategy?
Any ideas?
(Editor’s Note: This is the third in a series on Pakistan’s New Growth Strategy – see first two, here and here. The Planning Commission of Pakistan has invited ideas and suggestions on this and we invite and encourage our readers to please help in highlighting the best and most innovative ideas they can think of. Have your say.)
PIA should be converted into a domestic airline and all international routes should be handed over to Turkish Airline for Western Europe and North America and to Singapore Airlines for MENA and APAC. The workforce should be reduced to 5000-6000 employees. The rest of the 10,000 employees should be immediately retired with a good compensation retirement package. The current CEO Capt Aijaz Haroon should be fired with immediate effect for corruption and inefficiency. A new leader should be installed at the helm and the airline should be mandated to return to profitability by 2013 or measures towards privatization should be initiated. Simultaneously, new licenses should be issued to new private operators to compete with PIA starting 2013 and both domestic and international routes should be offered to them.
Their is no other way to solve this problem.
Capt Aizaz Haroon should be fired, but deal to radically restructure the airline through code sharing should be followed through as planned by this Government.
PIA should have been privatized years ago. Its like any other bloated, badly run and corrupt government department. I am sure that even after Asif bhai takes his cut, we can still have a leaner, efficient organization that serves its passengers and also makes money for a change.
The dreaded ‘P’ word. Privatization.
PIA should be shrunk into a smaller regional airline and the deal with Turkish Airlines should be consummated. After fixing the financial mess and cutting thousands of jobs, next step will be to hand it over to a private company to manage its affairs. After that, like in India, the airline industry in Pakistan should be open for private investment. Other airlines should be encouraged to compete with PIA. This is a good opportunity to privatize Pakistan’s civil aviation sector.
Imagine, if living in America, you are told you have only one state owned airline to fly with and no other choice. Would that be acceptable to American passengers?
Take tough decisions and stick to them. Govt should not give in to strikers.