The fate of PIA - Pakistan Today

The fate of PIA

The decision by PIA to eradicate a Revenue Management System that offered its clients a variety of competitive fares based on seasonal loads and routes will only translate into loss of much needed revenue passengers. Instead of stopping pilferages by the nexus of corrupt executives within PIA marketing, procurement and corporate planning divisions, an incompetent management has chosen to raise their fares astronomically high.

Irregularities in RBDs for Umra or Hajj and other peak load seasonal sales of tickets have led to pilferage of billions in revenues for the airline, when marketing officers in connivance with select travel agents released bulk seats at low fares to them, causing financial losses to PIA, with a bonanza for this nexus of the corrupt.

Perhaps the only solution lies in closing down this airline, followed by rehiring the best and most qualified of employees with no issues of lack of integrity. Airlines all over the world, faced with similar problems, have resorted to such remedial measures to get rid of the cancers that afflict them from within. Political interference by the sitting government and the dictator that preceded it has destroyed PIA.

The award of exclusive procurement of technical spares to Transworld Aviation FZE, based in Dubai will only further aggravate the serviceability of its grounded fleet.

Unfortunately, the crisis that afflicts PIA is neither lack of passengers nor skilled human resources, but its mismanagement and massive pilferage by a corrupt and incompetent management dominated by unqualified cronies, all with a controversial political patronage and visible conflict of interest. Be it leasing of aircraft, procurement of technical stores, or choice of appointing GSA and GHA, violation of transparent laid down procedures are a common factor.

While airlines all over the world prefer to acquire technical spares from a range of varied approved vendors, PIA has decided to appoint an unknown sole vendor. This will deny PIA not just competitive prices, but cause prolonged technical delays and grounding. Almost every vendor supplying aviation spares offers a credit line.

The factors that dictate the choice of a supplier for aircraft parts depend on the location of the vendor and his proximity to the site of the aircraft grounded and availability of part at the most affordable cost to an airline.

In case an airplane is in a critical state such as Aircraft On Ground status, airlines tend to pay higher price to expedite their operation and earn valuable revenues. It seems PIA by default will be resorting to buy expensive spares, because every technical delay will lead to an AOG status, since the airline has made a suicidal mistake of denying itself a range of vendors by limiting their supply line to one vendor with a first right of refusal. Those responsible for this criminal decision have done immense damage to this vital national asset.



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  1. Tass said:

    Excellent Analysis, but nothing concrete will happen, because there is no will by those in power to do better.

  2. Khalil said:

    PIA has been driven to this state by the choice of people appointed to steer it. Why dont men Asif Zardari, Zulfiqar Mirza, Ch Shujaat, Nawaz Sharif appoint uneducated crooks to head their private business empires?.

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