The Legal Services Division (LSD) of Pakistan International Airlines has recommended to the management not to entertain suggestions forwarded by the Cost Cutting Committee (CCC) constituted by the PIA Managing Director.
On April 4, 2011, Special Assistant to Managing Director, Mahmood Ahmad had sent a circular to all the directors informing them that in order "to retrieve the airline from the present financial and administrative problems, a Cost Cutting Committee with the following members, has been constituted which will recommend and advise the management and ensure the implementation on various measures."
It included: Captain Sohail Baloch, Chairman and First Officer, Chakar Ali Shah, Member/Secretary. The directors were required "to provide all support to the committee members in order to achieve the intended objective." On December 4, 2011 Captain Baloch wrote a letter to PIA Managing Director, suggesting certain measures for cost cutting, by appointing one solicitor for UK territory. The letter was passed on to the legal services department for comments.
LSD's advice forwarded to the Managing Director on December 13, 2011 makes a funny reading. "Placed opposite is a letter addressed to MD, PIAC from Captain Suhail Baluch, declaring himself as Chairman of some Cost Cutting Committee." This is how the LSD thought about the Chairman and the CCC which was constituted by the management.
LSD further said: "This office would not advise for giving any reply to the placed opposite letter, as apparently no such committee has been approved by the management, or PIAC Board of Directors. Any reply may tend recognition of such committee which then may open a door for all sorts of committees."
According to Chairman, CCC's letter PIAC has bifurcated UK territory into UK North and UK South. Resultantly, the assistance of legal advisor already appointed is no longer available for Manager UK North. Sohail Mahmood, ex-General Manager Legal Services had floated recommendation for appointing Sandhill Solicitors for UK North at retainer ship of 500 pounds sterling and payment of fees on case to case basis. In view of the desire of the Managing Director, PIAC on cost cutting measures CCC had recommended as under:
(a) only one solicitor may be appointed for the entire UK territory as per past practice since the litigation is of limited nature. This would save 6,000.00 pounds sterling per annum (Rs 09 million). The appointment of two solicitors should be immediately revoked as it amounts to unnecessary expenditure.
(b) Customer complaints should first be referred to Karachi office and be scrutinised internally before being sent to the solicitor for opinion. This would ensure that the grievances of passengers are redressed and would avoid unnecessary litigation. This practice should be adopted at all the stations.
(c) In case the grievance of the passenger is found genuine then the airline should accept the lapse and offer apology as well as compensate the passenger. (d) The schedule of fees to be paid to the solicitor/legal counsel for the cases to be referred, if any, should be decided at the time of appointment of solicitor.
(e) Manager UK North and South should be asked to propose the names of at least three law offices/solicitors along with their profile, so that the management decides, who is to be appointed for the entire UK territory. This would ensure better working relationship of the manager with the legal counsel.