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July 28, 2008 Monday Rajab 24, 1429



PIA, CAA lock horns over board issue



By Baqir Sajjad Syed


ISLAMABAD, July 27: Pakistan International Airlines and Civil Aviation Authority are involved in a war of words over their representation on each other’s board, taking their already strained relations to new lows.

The heads of the two organisations have in recent days exchanged heated remarks in the media questioning each other’s credentials to be present on their respective boards.

The controversy began last week when PIA removed CAA’s director-general from its board.

Subsequently, CAA director-general Farooq Rehmatullah in an interview with Dawn called for removal of PIA managing- director Capt Aijaz Haroon from the CAA board.

Mr Rehmatullah said: “PIA has no business to sit on regulator’s board, because this would constitute conflict of interest.”

He said that the representation on each other’s board was a reciprocal arrangement and now that the DG CAA had been removed from PIA’s board of directors, the latter’s managing director ought to be removed from the regulator’s board.

Capt Aijaz Haroon said he was shocked by Mr Rehmatullah’s statement.

He said the matter of representation on the boards was not reciprocal.

Stressing the importance of PIA’s representation on the CAA Board, he said the airline was a major user of CAA’s services and, therefore, its opinion and suggestions needed to be taken in running the affairs.

Mr Haroon accused Mr Rehmatullah of converting the aviation regulator into a real estate developing company and said that his focus had been more on non-aviation matters than on the core functions of CAA.

“I had said this at the first CAA’s board meeting that I attended and my stance was appreciated by other members.”

He said the CAA had amassed Rs15 billion in reserves, but was not spending it on the development of airports.

Boards of both PIA and CAA are formed by the Ministry of Defence.







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