PM Abbasi rejects 40-page turnaround plan for PIA
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ISLAMABAD: The federal cabinet on Wednesday trashed a ‘turnaround plan’ for Pakistan International Airlines Corporation (PIAC).
The cabinet meeting chaired by Prime Minister Shahid Khaqan Abbasi held a detailed discussion on how the national flag carrier can stand on its own feet.
An insider who attended the meeting told Dawn that senior officials of the PIAC, who had been tasked by the prime minister to prepare a comprehensive turnaround plan for the crippling national flag carrier, came up in the meeting with a 40-page plan that took three months for completion.
However, the prime minister and his cabinet rejected the plan and gave a tough time to the PIAC team by raising objections on the plan. “I do not want 40-page plan, give a brief plan on four to five pages as to how we can rescue the national flag carrier,” the prime minister, who himself has experience of running an airline, said.
The prime minister refused to grant any financial package to the PIAC in future unless its management comes up with a clear and effective plan.
“I will not give even a single penny if you people do not tell me how much amount to be required on the first, second, third and fourth year and what progress is expected year wise,” he added.
Later, the meeting decided to form a special committee to fine-tune the turnaround plan prepared by the PIAC management.
Published in Dawn, November 2nd, 2017
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Comments (34) Closed
Nov 02, 2017 08:51am
Salam Sir - being a finance person, in my humble and sincere view, both PIA and Pakistan Steel should be sold without any further consideration or leased on a long term basis. That will stop national exchequer funding these two giants with no ray of hope of their revival. Both institutions are highly political and that is the reason those not in power never let the go.
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Nov 02, 2017 09:00am
There is a clear conflict of interest here. Abbasi owns Air Blue in as much as the Sharifs own the Avenfield properties. Of course he will reject any sensible plan to turn around PIA. He should recuse himself from anything to do with PIA.
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Nov 02, 2017 09:04am
PIAC officials must have determination to turn PIA into a profit making corporation in a market competitive way
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Nov 02, 2017 09:30am
Good going PM Abbasi, While you on the hot seat least we expect is to fix the National Flag carrier with your experience.
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Nov 02, 2017 11:00am
Had they been sincere in making use of Abbasi's experience to turnaround PIA, Abbasi would have been appointed as PIA chairman *Minister for Transport) long time ago. But the fact is they and their corrupt cronies in PIA are siphoning billions in corruption at the expense of national carrier.
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Nov 02, 2017 11:11am
The only turn around possible is for PIA to begin making money as a private sector airline. Or else it could declare bankruptcy protection from creditors every three years and reorganize.
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Nov 02, 2017 11:22am
Massive conflict of interest here. Why is the owner and CEO of AirBlue, a PIAC competitor even reviewing the turn around plan? He should recuse himself at the very least and at best let PIAC's revamp be suggested by an external consultancy.
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Nov 02, 2017 11:44am
PIA can not be rescued under this Corrupt PMLN.
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Nov 02, 2017 11:49am
CONFLICT OF INTEREST!!!
PM has his own private airline.
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Nov 02, 2017 11:53am
PM Abbasi himself has very good experience of running and flourishing an air line and destroying another one when he was made Chairman.
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Nov 02, 2017 11:55am
Yes, of course, He wants PIA to be halted and buried in to the ground, so his own little birds can fly away.... If there was a conflict of interest, this is the glaring example of it.
Only in Paksitan can one get away with wrong-doing, corruption and misuse of power.
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Nov 02, 2017 11:55am
A good PIAC progress plan would mean tough competition for other private carriers, especially AirBlue. I doubt if our PM would want to do that.
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Nov 02, 2017 11:56am
Shahid Khaqan Abbasi ... Sir just buy the national carrier... Let us get it done and over with it.
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Nov 02, 2017 11:57am
Good job PM. It's just like throwing good money after bad.
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Nov 02, 2017 12:11pm
He owns an airline. With such an obvious conflict of interest how can he turn around PIA?
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Nov 02, 2017 12:13pm
@Zubair
Sorry that is not the goal. The goal is to use PIA to place incompetent people who help the parties win elections, as a pay back to their families and friends. Also to keep it under national control to cater for govt expense paid travel trips.
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Nov 02, 2017 12:23pm
Beware! PM is owner of PIA's competitor Airblue. Will he really be fair with PIAC. Hmmmmm
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Nov 02, 2017 12:50pm
@asim Make PIA private like rest of the world and conflict of interest will go away.
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Nov 02, 2017 12:58pm
Abbasi wants PIA plan that allows GOP to assume PIA's liabilities and Air Blue to buy out it's assets on salvage value. Good going PM.
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Nov 02, 2017 01:01pm
You really want to rescue national Flag Carrier? Very simple. Fire 4 levels of Management, appoint a serving Vice Air Marshal from PAF and give him the task to make PIA, Great people to fly with. in 3 years you will see this National Flag Carrier is back in the skys.
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Nov 02, 2017 01:01pm
conflict of interest.........if PIA will revive what will happen to Air Blue
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Nov 02, 2017 01:06pm
So good to hear that the PM has taken a team to task.
As a trainer I often say, that someone who truly understands something, has the ability to explain it to a sixth grader! The fact that a subcommittee has to be formed to summarize a 40 page report, and they cant just sit together and do it in 4 hours, really worries me! Goes to show that they don't really get it.
The airline hasn't figured out their value proposition for customers. They don't have an execution plan that is simple and clearly understood my it's employees and they have an employee base that doesn't care about the success of the company or the customer! Until all of this comes in line, Mr. Prime Minister, you're fighting a lost cause!
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Nov 02, 2017 01:37pm
@Syed Ahmed
Plz think otherwise. Such plans have been presented in past as well, yet not being practical & failed to rescue PIA. PIAC should be present achievable plan but not copy paste approach.
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Nov 02, 2017 01:53pm
I have trust inPM to turn around pia
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Nov 02, 2017 01:57pm
@gul-e-napaid Air Marshalls have desroyed civil aviatipn. They know zilch about civil. An Aur Commodire was appointed in PIA procurement and he's under investigatipn. Dont paint a pretty picture of air force. Why not appoint civilians in key positions in PAF too?
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Nov 02, 2017 02:01pm
I have more than 12 years of Airline Sales and Marketing experience in Pakistan, UK and UAE.
The prime strategic leaver in turning around PIA will have to revolve around two KPIs
1. Load Factor
2. Revenue per available seat KM.
The above is not a trade secret and is known to all in the industry. However unless you have a Marketing and Sales team working in close coordination to optimize volume in a highly competitive market, the chance for better loads and yields are highly unlikely.
Primary issue with sick Airline units is not the lack of talented people... it is the unfortunate placement of your HR pool where the people having the skills and knowledge are not given the decision making roles.
Focus on product development in line with the routes being served, keep the fare level competitive particularly in lean-seasons, knowing when to launch tactical promotions, keeping customer experience on top priority, expand operations in higher yield markets etc.
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Nov 02, 2017 02:02pm
40 pages plan with no clear deliverables!!!! The PM is absolutely right to reject this. In a real world a brief plan with clearly written deliverables and responsibilities would do. On the other hand, a politicised airline, around 18000 employees, mismanagement etc. In any civilised country, PIA would have been privatised and flourished by now.
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Nov 02, 2017 02:13pm
I have more than 12 years of Airline Sales and Marketing experience in Pakistan, UK and UAE.
The prime strategic leaver in turning around PIA will have to revolve around two KPIs
1. Load Factor
2. Revenue per available seat KM.
The above is not a trade secret and is known to all in the industry. However unless you have a Marketing and Sales team working in close coordination to optimize volume in a highly competitive market, the chance for better loads and yields are highly unlikely.
Primary issue with sick Airline units is not the lack of talented people... it is the unfortunate placement of your HR pool where the people having the skills and knowledge are not given the decision making roles.
Focus on product development in line with the routes being served, keep the fare level competitive particularly in lean-seasons, knowing when to launch tactical promotions, keeping customer experience on top priority, expand operations in higher yield markets etc.
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Nov 02, 2017 02:27pm
Well done PM
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Nov 02, 2017 02:44pm
As an employee of PIA, I sincerely believe that we can not run the airline. The only sensible option will be to privatise the airline. Although it may be against the interests of employees, but this will be only honest choice.
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Nov 02, 2017 02:53pm
@Silent observer true
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Nov 02, 2017 03:18pm
@gul-e-napaid Oh, no! Just look what a retired air commodore got away with only recently? An airworthy aircraft worth millions of dollars and no hope or chance of either catching the accused or getting back the aircraft. Just sell the PIA to the prime minister who is running another airline in the country and it will be turned into a going concern within no time. Only a replacement for the job of prime minister will be required.
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Nov 02, 2017 05:10pm
@Syed Ahmed There is another view to look at - Abbasi knows how to run the ariline and he spotted flaws in the proposal straight away. I am not a PML-N supporter but why do we always question one's honesty and integrity for their work. He is from a decent family; Abbasi and his father contributed greatly to the development of Murree; we shall not question his sincerity...give someone a chance.
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Nov 03, 2017 05:17am
Im sorry but its time to reinvent this airline , pia went from one of the best to a trash airline , reason corruption and employees treating it like a step child , with no concern for the future . Shut it down !! No bailout
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