ISLAMABAD, Feb 28: Pakistan International Airlines (PIA) on Thursday reverted to its former system of management with powers shared by the chairman and the managing director in a bid to revive the sagging fortunes of the national carrier.

The airline suffered a loss of over Rs12 billion, forcing the government to bring about some administrative changes.

The reversion to the old system has cost the airline its chairman Mr Zaffar A. Khan, who resigned because of differences over the choice for the managing director’s post.

Mr Zaffar Khan, who saw the airline through the operational restrictions slapped by EU last year, had been holding both the offices of the chairman and managing director since April last year. His predecessors, Mr Tariq Kirmani and Mr Ahmad Saeed, had also held both the offices.

Federal Defence Secretary Kamran Rasool is the new chairman, while the position of managing director had gone to Aslam R. Khan, a former PIA officer.

Mr Zaffar Khan while talking to Dawn said that in principle he always supported the bifurcation of the offices of chairman and managing director. “However, the question was of appointing the right person.”

Mr Aslam Khan’s name had been doing the rounds for a few days for the post of managing director. Although he has previously served as the airline’s deputy managing director, sources say that his golf connections outdid other candidates who also had significant aviation experience.

Questions are also being raised about making such appointments at a time when a new government is about to take office.Mr Zaffar Khan said he had no regrets for leaving the office, except for the fact that he could not bring about a financial turnaround and stem the losses. Otherwise, he said, he had tried his best and made substantial improvements, which would be of benefit to the airline and his successors.

Mr Aslam Khan said he wanted to end uncertainty in the airline and would assure the employees that there would be no layoffs. The employees, he said, needed to be motivated and gelled together as a committed team.