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The European Union (EU) laid the trap. And the national flag carrier - Pakistan International Airlines - fell right into it. In September last year, EU authorities had raised markers on PIA planes after undertaking ramp inspections. Obviously, these inspections had nothing to do with flight safety but were pointers on the general appearance of the aircraft cabin.
In response, PIA management claims to have created a 'core group' to address the issue, and refurbishing of older planes was undertaken. The airline authorities, however, even then knew that the European game had a wider aim. PIA's decision to buy the Boeing 777's and not the Airbus planes had upset the EU.
The French and German ambassadors in the country had openly expressed their disappointment and pointed out that after 9/11, unlike the USA, it was the EU that had given Pakistani textiles a larger share in its market. Pakistan's defence that the purchase of B-777's was purely a commercial decision based on better financing terms from Exim Bank of USA, was not an acceptable explanation to the Europeans.
One can sympathise with PIA Chairman Tariq Kirmani's contention that no show cause notice was issued before cancelling licences for PIA flights to many European destinations. EU had plainly discriminated against PIA. But, taking legal course will be non-productive despite the damage to the national flag carrier's reputation. In any legal challenge, a court is more likely to tip in favour of safety and to disregard the fact that nothing had been given to the airline in writing by the European Commission.
PIA's track record on safety is better than most airlines'. Certification from European Aviation Safety Agency and IATA's Operational Safety Audit are acceptable safeguards the world over. Is EU within its rights to impose higher standards of safety for European passengers? The answer is in the affirmative. This is precisely why EU formed an Air Safety Committee a year ago, ie to further tighten the screws on the airlines flying into Europe.
Apart from British Airways, no European carrier touches Pakistan. Had that not been the case, Brussels might have hesitated in taking such a harsh action, as commercial considerations would have come into play giving more time to PIA to pull its bootstraps.
The Civil Aviation Authority (CAA) of Pakistan is the licence giver to PIA. Bilateral agreements exist between Pakistan and individual European countries, and not with the European Union as an entity. Under the bilateral treaties sharing of information on air safety with CAA is an obligation for European regulators. This has not been done thus far. Thus CAA appears to be powerless to play an effective role in countering EU restrictions.
It can, however, assure non-European travellers that PIA aircraft continue to be air worthy and its quality check processes are in accordance with international requirements. But the Ministry of Defence as well as CAA are not happy with PIA either! A whispering campaign about warnings of possible action by EU is emanating from the Ministry of Defence and the CAA both. In the past, it was PIA, which was instrumental in making country's aviation policy. Any protection given to PIA impinges upon CAA income and is also contrary to a competitive policy to serve the country.
PIA customers can testify with certainty that PIA's ticketing system, check-in facilities and in-flight service have improved. To achieve this, PIA management had to step on too many toes. In the process, it has earned the wrath of the two most important unions in the company - the pilots and the engineers. Denial of special privileges to politicians has also not helped. Frequent hearings in the parliamentary committees are reflective of their annoyance. PIA has an overage fleet.
But World War II vintage planes are still flying, having certification of airworthiness. Poor condition of seats, fused lights, shaky overhead cabin doors and dirty/wet bathrooms do not give a proper ambience to PIA planes. Sweepers to keep the aircraft clean during flight are definitely required on an ethnic carrier like PIA.
Operational difficulties, due to EU restrictions, will certainly be overcome within a month. But the damage to PIA's reputation can only be repaired when the airline becomes profitable. The Pakistan government, at all costs, will keep its aircraft flying. It is the customers who should think of PIA 'as great people to fly with.' For this to happen, the national flag carrier needs to be privatised. Only private management can reduce aircraft to manpower ratio to improve the carrier's bottom line. A privatised PIA would have hedged its jet fuel purchase thereby lowering the loss it made in 2005-06. A public entity comprising of government nominees on the board with little business experience will always tend to favour the status quo.

Copyright Business Recorder, 2007

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