A case for more airlines
For sheer corporate excellence, PIA is still far ahead of all Pakistani commercial entities. At least on a pro-rata basis in relation to size, PIA comes out well endowed with modern management expertise. In comparison to airlines of other countries of the world, PIA has now generally deteriorated across the board, almost to the point of despair. In patches, PIA still excels, its cockpit crew and ground engineering staff are still way above the industry average, indeed to be proud of, however PIA’s ground handling is about average within the country and when outside the country is generally as atrocious as the performance of the cabin crew almost all the time. Exceptions are the rule rather than the exception, given the fact that the passenger comes into contact with the ground handling staff and the cabin crew during his/her air travels rather than the cockpit crew and ground engineering staff, the perception transmitted is that of an airline that does not care two hoots for you and that transportation from one point to another is a favour instead of a paid-for service. At best a spotty effort, mostly shoddy, gives us reasons to think aloud about a rectification and/or adjustment and/or rejuvenation process, or even better a shock treatment meant to restore the prestige of what used to be an excellent service that all of us were once very proud of.
PIA’s greatest problem is that it is over-staffed, too many people engaged on one basis or the other, mostly nepotism. Within this over-population also lies the fact that a number of services that should be sub-contracted are handled by PIA itself, contributing to a financial overload. The passenger load-factor is subject to strain. As all employees and their dependants are entitled to free travel, the over-employment has a pressure-multiplication effect. A situation is fast approaching where PIA in the near future could conceivably carry more employees/dependants (and other non-revenue passengers) on the average in each flight rather than revenue paying passengers. All services need to be sub-contracted in a well-coordinated but short period of time, included in the hit list must be catering services, cleaning services, security services, etc. All modern airlines use contract services wherever possible, very much like PIA itself does in out-stations abroad. This is a burden that has recurring overtones when employees retire and come on the pension list. At some point of time the upward curve on the graph representing non-productive expenditure must cross the downward graph of revenue earned. In this extremely competitive field, PIA will not be able to survive financially, without constant infusion of funds.
PIA did undergo an exorcism of sorts during the purge of union members in the early 80s. Without going into the merit/demerit of the handling of this sensitive issue, for some time PIA did begin to look like a lean, tough contender in the world airline market. The service improved substantially and generally there was an upbeat aura throughout the PIA system. Thereafter the “Law of Nepotism” caught up again and there occurred an influx of favourites of the powers that-be. One fears, however, that the termination process may have included innocents targeted due to personal grudges and in most cases this process may have been less than fair. Certainly a case does exist for reviewing, on compassionate grounds and in the interests of justice/fairplay, all the cases by select tribunals giving personal hearing to all, particularly re-instating (or finding alternate employment for) those found innocent and still without commensurate employment.
The first thing for PIA to do is to turn on itself and carry out a review of the Tables of Organization and Equipment, projected well into the 21st century. While accepting PIA’s general management standards to be above par, professionals within PIA must do an in-depth study to determine realistic ways and means so that the financial burden on PIA can be pared to a minimum (plus 10% kept as reserve for unforeseen increases). Given the fact that PIA’s computerization, except for its ill-fated nepotism-oriented APPLE venture has kept up with the increased high-tech sophistication of the world, computers should be desk top management tools in every corporate executive’s office. All directors/executives must be force-fed with computer knowledge. People in the PIA management like Nawaz Tiwana, Brig Manto and Dr Shah, etc are above par exceptions in their own disciplines and should be encouraged, without interference from outside vested interests, to make PIA really “Great People to Fly With”. With no aspersion on Air Marshal Daudpota, who happens to be an excellent human being, given the hobbling circumstances he has managed PIA well, now that he has become Chairman occasion must be given for PIA’s own home-grown employees to take over the No 1 slots in management. Why can’t someone from within PIA become the Managing Director? If custom dictates let the Chairman be from the Air Force, but day-to-day overseeing of management functions must be given to long-time PIA employees who have shown effective management capacity and dedication to their jobs. Their depth of knowledge and experience can never, except in occasional circumstances, be ever emulated by anyone else. One must, however, be wary of those who analyse and project the data for fleet planning, some pretty senior executives have been known to be on the payroll of aircraft manufactures. Even now vested interests who have acquired political clout recently are conspiring to get malleable executives into senior directorial slots.
The solution cannot be just to shed off employees, in third world countries one has to look beyond also at socio-economic factors, particularly that of trained manpower being set adrift without hope of employment in a single-airline industry. This can be done by allowing other airlines to be formed in the private sector. In order to bring efficiency as a factor into the body-economic, we must always invite competition. In this respect we should allow any number of airlines, which meet certain given standards of financial viability and operational effectiveness to grow on the domestic routes and a limited number on the international routes. We must let market forces decide the survivors. Massive deregulation is needed in the airline sector. In the first instance, we must also disinvest PIA, allowing private sector enterprise to come into management, competition becoming a form of accountability allowing market factors free rein. Let the intending passenger be the discriminatory judge of what airline to take, the private sector’s marketing ability depending upon maintaining efficiency and performances. Only constant customers, happy with the airline service, would make the airline corporate entity financially viable. This would act as a great spur on PIA. If the private airlines go bankrupt or even PIA, so be it, one cannot go on living on past laurels.
When new private airlines are formed, more employment opportunities would mean that expertise across the board will be drawn into the newer ventures freeing PIA from the present stagnation across the broad spectrum of its employees. It would also mean better salaries in keeping with international levels as airlines compete to get the better potential. There is a genuine frustration among the PIA employees because of the lack of promotion. Promotions can only take place when there is both lateral and vertical movement of staff. Though expansion would mean some vertical promotions, it is only when employment opportunities are available in other airlines that promotion slots will be available, to be filled through a combination of seniority and merit.
More airlines would mean many more ancillary employment opportunities, a real boost to the economy. With increased landings/and take-offs and greater availability of seats, supply will exceed demand, competition bringing down the prices of tickets. Smaller routes will be serviced by smaller airlines and there will be a proliferation of air travel as more and more towns are inter-connected. Instead of begging around for seats in time of need from one’s contacts within PIA (a situation never seen in most other countries) one would be confident of buying a ticket even a few minutes before departure. Above all, the sheer frustration of relying on PIA, facing from time to time a callous couldn’t-care-less attitude in most of their staff coming into contact with passengers would be a thing of the past.
A journey on PIA is not something one really looks forward to anymore, a sad commentary for a once-wonderful airline. With the labour unions now showing signs of becoming restless, one can only foresee a steady deterioration in the future till we hit rock bottom. This was an airline with a staff imbued with the sense of pride of performance, famous for its staff morale, now from a passenger’s point of view it has reached an unacceptable low. When flying on most other airlines this is brought home with telling effect, with every smile and/or courtesy shown, the comparison one makes is calls for the drastic measures aforementioned. There is a need for performance-oriented motivation.
The Government must lay down quickly some parameters for the granting of licences for more airlines. Along with financial and operational minimums, there has to be safety standards instituted and acceptable passenger comforts defined, etc. The aircrafts to be used must be standardized to an extent in each load category, the CAA will have to govern each area of aviation concern separately, particularly aircrew and ground crew efficiency and performance. Air routes have to be re-defined and passenger terminals up-dated to take in the greater movement of aircraft and passengers. Very much like in Europe and/or USA, departure gates should be sold to the highest bidders among airlines so that money spent in the new construction by the CAA could be recovered and used for maintenance of high cleanliness and operational standards. From the domestic airlines that are granted licences and survive financially thereafter, a couple should be chosen to carry passengers on international routes, thus the permission to operate private airlines may be phased in this manner.
One could go a step further. Very much like the example of BCCI (i.e. at least at the outset), one could encourage Pakistan entrepreneurs in the private sector to set up international airlines based in UK and USA. The Pakistani expertise is there, what is needed is moral and material support to compete internationally. In this respect the Government can certainly help out within its financial constraint.
Whichever way one looks at it, we would be doing PIA and the economy a favour by allowing other airlines in the private sector. A case does exist for more airlines in Pakistan. A dynamic and vibrant economy needs freedom in air travel as a constant means of physical communications.
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