PIA's losses

PIA has declared an after tax loss of Rs 18 billion for the last six months period from January to June 2008. It is the highest recorded per month loss declared by PIA, since the time the airline has gone into a nosedive due to mismanagement, poor planning, pilferages, poor marketing strategy, bad corporate planning and schedules that do not conform to economical route structure.
From the time that Ahmed Saeed took over as Chairman, to Tariq Kirmani's tenure and an uneventfull innings played by Zafar A Khan it is one gruesome tale for this unfortunate airline. Since May 2008, the government appointed a pilot, to take over command of the airline's executive policy making corridor.
He got engrossed in trivial matters, while the airline per month losses have reached frightening levels of over Rs 3 billion per month. The problems of PIA are too acute to be handled by a pilot, who may be good on controls of a B777, but has no experience in management, except for brief intervals.
Even in these days when fuel prices have risen to astronomical levels, there are airlines like Virgin Air, which operates out of UK and have declared a net profit to the tune of over 60 million pound sterling. Virgin Air operates out of Heathrow, which charges the highest parking, and landing fees. Its employees salary bill is higher than that of PIA.
It is owned by a smart and dynamic businessman, who has chosen an experienced airline executive to serve as CEO. Virgin Air buys fuel at the same price as does PIA. Its fare structure on Trans-Atlantic route is comparable to that charged by other airlines. What it has is the best management, zero pilferages, most qualified professionals and hubs located where the revenue is generated.
Pilferages have not been arrested, because of lack of accountability and absence of proper revenue accounting, auditing and procurement procedures. Political appointments and biases have damaged this airline, which was once a profitable organisation.