ISLAMABAD: Opposition senators on Thursday called on the government to compensate Pakistan International Airlines (PIA) for its ill-conceived venture of the Premier Service, which was shut down after incurring Rs2.8 billion in net losses.

The matter came up during a briefing by Aviation Secretary Mohammad Irfan Elahi, who was explaining to the Special Committee of the Senate on Performance of PIA why the Islamabad-London-Islamabad service was shut down

“The service was launched on an experimental basis for six months to build up the image of PIA and recover the lost market of club class,” said Sqdr Ldr Muhammad Irfan Elahi told the committee.

Launched on Aug 14, 2016, the Premier Service was launched according to the vision of the government, which approved the concept on April 2016.

The PIA Board of Directors also approved the concept, which was expected to rejuvenate the flag carrier’s fledgling brand image and improve service standards.

However, the disclosure of heavy financial losses annoyed all committee members. PPP Senator Sherry Rehman said that the Premier Service was started against the express advice of the committee.

“The government should pay PIA for the losses for coming up with a failed business plan,” said her party colleague and former finance minister Senator Saleem Mandviwalla:

Senators Sherry Rehman and Nauman Wazir Khattak urged committee chairman, PML-Functional Senator Syed Muzafar Hussain Shah, to summon the entire PIA board to answer why they approved the initiative without first devising a long-term strategy.

However, Aviation Advisor Sardar Mehtab Ahmad Khan urged committee members not to interfere with what he termed “the small issues of the airline”.

“The committee does not have the authority to interfere with the business plans of the organisation. Intervention will distract the board from other important issues,” he said.

The adviser said that the government had the right to provide a vision, and that it was the responsibility of the PIA management to come up with a viable product. Calling the board would not help, he stressed, urging the committee not to try and take PIA’s control into its own hands.

“The case has been forwarded to the competent investigating authority. The Federal Investigation Authority (FIA) will soon have answers on the issue,” the adviser said.

These remarks rubbed all members the wrong way and only vexed them further. The senators argued that the board took directions from the government, which was in violation of Securities and Exchange Commission of Pakistan (SECP) rules.

PPP Senator Barrister Murtaza Wahab said the committee could interfere when public money was squandered. “The board is not working in the best interests of the company,” he added.

The aviation adviser, however, tried to pacify members by saying that the board was cognisant of its responsibilities under the Companies Act.

However, the committee chairman was clear that the body had the authority to probe the decisions taken by the airline’s management. “The committee feels it has the authority to look into decisions that cause such colossal losses. The adviser has three days to suggest names [of responsible persons] for the committee to summon to answer for approving such a poor business plan,” he concluded.

Change of heart?

After eight months of campaigning for the sacking of a PIA captain, who compromised the safety of passengers on an international flight by inviting a Chinese woman into the cabin, lawmakers on Thursday sought his reinstatement.

PPP Senator Sherry Rehman, who had earlier called for the pilot to be sacked, said on Thursday: “If the Chinese girl has not filed a case of sexual harassment, the pilot should be allowed to resume flying.”

In June, a video of the cabin crew escorting a Chinese girl into the cockpit went viral and was reported widely in the mainstream media. The case was taken up by the standing committees of the National Assembly and Senate, as well as by the Special Committee of the Senate on the Performance of PIA.

An inquiry was initiated against the pilot in question, who was flying PK853 from Tokyo to Beijing in June 2017. The operating captain, Shahzad Aziz, was held responsible for violating rules by inviting a passenger in the cockpit during landing.

A show cause notice was issued to Captain Aziz, who then challenged the decision in court.

PIA CEO Musharraf Rasool Cyan told the committee that a Sindh High Court stay order barred the PIA management from taking any coercive action against the pilot.

Nonetheless, most members agreed with Senator Rehman and opined that the pilot should be allowed to resume his duties if the Chinese woman had not filed a case.

But Aviation Advisor Sardar Mehtab Ahmed Khan recalled that the airline management had found the pilot guilty of inviting a passenger into the cockpit during landing, which was against rules.

“PIA initiated proceedings against the pilot after a hue and cry was raised by parliamentarians, and the media,” he said.

However, following requests from several members, the committee chairman left it to PIA to decide the case.

Published in Dawn, December 15th, 2017

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