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03
Mar
2012
Five points management solution for PIA

Aviation industry is not merely a sector of national economy; it also serves to improve the image of the nation. If you take an example of Emirates Airline it has been carrying the role of promoting the small state like Dubai to the world.

It is not a secret that PIA is doing worst while being in a region that offers great chances for commercial aviation companies. In a country where seat factor ratios have been relatively brisk our national airline has been recording the history of the loss of money, image & credibility.

I don’t want to discuss the numbers today as you are well aware or you can google them that how much we have lost from national treasury for having Pakistan International Airline in our public account portfolio.  

I have developed five points solution after discussing the matter with smart airline professionals with whom I met & discuss the issue in the Middle East. They are basically the key fundamental points rather than discussing managerial aspects in totality.

The points are:

1-    Aviation industry & CAA must not be a domain of Ministry of Defense; if something is a security issue then profit and loss is always secondary. This industry has to be seen as a regular part of economy & it requires running under the authority that has commercial aviation professionals rather than retired air force officers.

 

2-    PIA must not be run under the leadership of a Pilot or a Captain; A person who has spent his career while flying an aircraft through GPS or a sophisticated technology can not have a required business, management or corporate leadership sense [or knowledge].  As per modern management practices the management and technical authorities of an airline or aviation sector has to be distinct. The CEO or the Managing Director of the company is required to run the company as per the best management practices and he/she has to be the qualified management professional.

 

3-    Political Unions has to be banned: A commercial organization that is public or private shall not have unions whose objectives are based on national or any sort of non professional politics. If any union under CBA laws has to be there it must be a hardcore worker union based on management objectives. In this regard the parliament has to make legislation to amend CBA laws whereby they have to create an authority whose work would be monitoring involvement of national politics in commercial unions.

 

4-    International Plane / Staff & other key operational & financial Ratios have to be followed: It is not a rocket science; no one can deny that there are international Aircraft / Crew, Aircraft / Pilots & Aircraft / Ground Staff Ratios. PIA being an airline whose appointments is majorly politically motivated need to resize her headcount as per the requirement of specific aircraft & length of operations. In the same way everything that is associated with the airline has key factor standard ratios that in any case have to be followed.

 

5-    Management Audits must be a regulatory requirement for operations and organization: Other than financial audit, being a national airline & big commercial entity PIA requires a yearly Management Audit by an independent global aviation industry auditor. The recommendations of the auditor have to be a part of strategy framework for next year or years. In is also advisable in the country like Pakistan that appointment of CEO and other senior management & operational staff has to be done through an international HR firm that has a key experience in aviation hiring. It has to be at least till we shall have a professional body in the country that do all of it over their own shoulder.

 

In my view if above five points shall become the elements of policy the remaining managerial issues shall be rightly guided towards solutions.

It is also the responsibility of the government to draw a rational aviation policy that shall be based on business, top class service standards and promoting the image of the country through our national and private airlines.

We still have a time, if the steps would be taken in right direction the loss can be recovered and we can have sound financial and non financial results that can make the nation proud.


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Farrukh Qureshi Says:

All the 5 points you hi-lighted above in your article are very important in context of running a corporate but unfortunately in Pakistan there is a single corporate business which govern all the bulls and bears and that is Government. All the corporate industries in Pakistan are behaving like a social and our social Government is the management director.... The best business in Pakistan is politics which do not need any sophisticated educational degree except the association And said by...... Degree to degree hoti ha education ki ho ya association ki. Best of Luck bro....

03 - March - 2012 03:00:23 PM

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Mr. Omer

Mr. Omer [1982 born] started  his professional career as a commercial / investment banker after achieving Gold Medal in Finance at master level from University of Karachi in 2006.

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