PIA : Revive not privatize

Nawaz Sharif in his manifesto of 2013 had promised to make PIA as model airline but now government is determined to privatize PIA by the end of this year. Unfortunately, it was destroyed systematically whereas there is still great potential to revive it. It was one of the best airline of the world and we witnessed over 40 airlines touching ground of our Karachi Airport. How is it that we have forgotten “Hostellerie De France “located opposite Star Gate that used to provide catering facilities to these airlines but now abandoned. That was real Pakistan. PIA with Slogan “Great people to fly with” still popular throughout the world but political interference damaged airline as a result the condition kept nose diving. Let us throw some light how PIA has been destroyed. The start for PIA down fall started from 1990 while introducing open sky policy and it virtually destroyed the national carrier . Again while introducing new Aviation policy in 2015 PIA was further damaged because national interest was completely overlooked and personal interest was given priority. While introducing aviation policy no stake holders were consulted as a result the policy collapsed. Ignoring stake holders was greatest blunder, those who are earning revenue for Pakistan should have been on board. However, new aviation policy was introduced by PTI government in the year 2019, the good thing was all stake holders were consulted. But Secretary Aviation was given additional charge of DG CAA knowing well that it fell under conflict of interest but who cares? Over all aviation division failed to attract more air lines to operate from Pakistan. Question arises why government is keen to privatize PIA? Who assessed the value of Rs 85 billion that is simply peanut? We didn’t require any consultant to to be hired and paying millions of dollars to sell our property. We have better experts who can evaluate any asset. Why FBR is not tasked to do this job. The PIA Head Office and surrounding area is more than Rs 100 billion. In DHA 500 yds. plot is being sold over Rs 5 to 6 crores. Finding worth of PIA is no more a rocket science. London Karachi route is roughly 100 million dollars equal to Rs 30 billion. We have 17 A-320 planes, each costing to 120 to150 million dollars roughly open assets are around Rs 165 billion. Six parties were active to buy PIA. These were Air Blue, Arif Habib Corporation, Blue World City, Fly Jinnah, Pak Ethanol Consortium, and the YB Holdings Consortium. PIA received only one bid from the real estate group Blue World City to acquire a majority stake in the national carrier. The party offered Rs 10 billion, what a joke of the century. He should be tried under terrorist’s act, he made fun of government not PIA. PIA’s total liabilities amounted are to the tune of Rs 843 billion, of which Rs 623 billion have been transferred to a holding company, now the responsibility of taxpayers. Government has offered to sell shares between 51% and 100%. One party has indicated a willingness to acquire 100% of the shares, two parties are interested in 51%, one in 75%, and another in 80% to 90% as reported in the press. There is no doubt that pursuit of the agenda of privatization, deregulation and liberalization shall reduce to some extent direct and indirect powers of patronage enjoyed by the state but there is no wisdom in throwing away our strategic assets to foreigners in the name of investment. Once again PML N government introduced new aviation policy in August 2023 that revolves around creating more high profile jobs for cronies without any rationale. Notwithstanding, which party was in power we failed to evolve a proper aviation policy all successive governments introduced aviation policies suiting to their convenience which were not based on national interest and objectives. Under new aviation policy CAA has been divided in to two parts, PCAA (Pakistan Civil Aviation Authority) and PAA (Pakistan Airport Authority), tantamount to putting unnecessarily burden on PCAA. There cannot be two opinions since the creation of aviation division, instead of any improvement the situation has worsened as PIA continues to nose dive, CAA going to meet the same fate. PIA once a pride of the nation is no more there. Undoubtedly PIA, has been one of the best airlines in the past and the credit goes to AM Noor Khan who did not allow any political interference in PIA, he would give targets to different managers and if they failed to achieve they were removed. When the pressure came he preferred to resign. For readers interest they must know that 70% traffic was of gulf countries when Emirates, Etihad, and Qatar airlines were not there and 30% revenue was from international routes. We had Air Buses A-300 that would take care of Middle East. Our all flights going to Nairobi would go full and pick up passenger from Dubai. PIA down fall started after introducing open sky policy. It was good step but blunder was made by not protecting interest of our national carrier. About 5000 to 6000 employees were laid off by PML N government being surplus inducted by PPP government. When PPP government came they reinstated all the employees thrown out by PML N. They were paid their salaries for the entire period and after getting their dues and resigned. These are the factors, beside other corrupt practices that was reason of downfall of PIA. The root cause now is not the surplus manpower as propagated that is around 7000 employees now but the shortages of planes is major reason. It is heartening to know that a Pakistani group based abroad has offered to buy PIA in Rs 1.25 trillion it is negotiable. The group is also willing to clear Rs 250 billion debt of PIA. They have also promised to induct new planes, nobody will be fired, they shall also raise salaries of staff to match any other airlines. Government should immediately invite the party for the agreement. Let us now come towards suggestions to revive PIA.
The most important and immediate requirement is to arrange 5 new aircrafts for long distance, and take back our lucrative routes sold out to foreign airlines and impose restrictions on foreign airlines by restricting their flights Pakistan. PIA shall be back on its track and can also revive its past glory. Million-dollar question. Are we ready to accept this challenge?