The Supreme Court on Tuesday allowed Pakistan International Airlines (PIA) Board to run the affairs of national flag carrier and also the functions of its chief executive officer (CEO)/chairman.

A three-judge bench, headed by Chief Justice Gulzar Ahmed, turned down Air Marshal Arshad Malik's appeal to suspend the Sindh High Court (SHC) order restraining him from performing duties. The bench summoned the high court record regarding the matter.

The SHC on 23-12-2019 had restrained Air Marshal Arshad Malik from carrying out any function as the CEO PIA till January 22.

Justice Gulzar said let Arshad Malik pack up and the federal government appoint new CEO of PIA. He inquired from Attorney General for Pakistan (AGP) Anwar Mansoor why the government is insisting to retain Arshad Malik. The AGP said that Malik is a serving air marshal. Upon that the CJP asked; "What expertise has he on the financial side?" The AGP did not respond.

Justice Sajjad Ali Shah remarked that PIA fares have been increased by 100% in one year. The apex court noted that Arshad Malik who came to the PIA on deputation brought with him 10 PAF officials - 2 air-vice marshals, 4 air-commodore, 3 wing commanders, and one flight lieutenant.

The CJP asked: "How can Arshad Malik make such appointments when he himself is appointed on deputation?" He said if the air chiefs and commodores have to run the PIA then the government better give it to the Pakistan Air Force (PAF). Justice Sajjad remarked they could not run Shaheen Airways.

The apex court in September 2018 had declared the appointment of Musharraf Rasool Cyan as CEO PIA null and void. Air Marshal Arshad Malik was appointed CEO as stop-gap arrangement.

Air Marshal Arshad Malik had been a nominated director PIA since October 17, 2018. He was elected as acting CEO on October 26, 2018 and was appointed regular CEO with effect from April 26, 2019 as per PSC Guidelines 2015. Before joining PIA, Air Marshal Malik was Vice Chief of the Air Staff (VCAS) of Pakistan Air Force (PAF).

Justice Ijazul Ahsan said that in Musharraf Rasool's case the apex court had outlined methodology for the appointment of CEO and now the court would see whether that methodology was adopted in Arshad Malik's appointment. He said they would also compare the advertisement in order to see whether it was designed for his appointment or it was as per the past practice.

The court said they would also examine whether the process of appointment was transparent and the requirement of law was fulfilled.

Mansoor Khan said the federation has appointed Air Marshall Arshad Malik as per the rules. He informed the bench that for the appointment of chief executive officer, an advertisement was given and Arshad Malik was confirmed as CEO of PIA as per the procedure.

Salman Akram Raja, appearing on behalf of PIA's Senior Staff Association (SASA), said that the present PIA management had stopped the PIA Board from performing its duties.

The Chief Justice observed that the PIA is run like family business, as they keep persons whom they like and remove the employees whom they don't.

The case was adjourned for two weeks.

In his petition, Malik stated that negotiations for export of planes were conducted by him with Sri Lanka, Myanmar, Egypt, Argentine and Nigeria with orders obtained from them later.

Arshad Malik also stated that he was posted as Deputy Chief of Air Staff (Personnel) for a year, dealing with human resources issues, both of civilians and serving Air Force employees. This assignment included HR planning, career profession development of the entire human resources of the PAF, all over Pakistan.

Malik said that till deputed at PIA he was the Vice Chief of PAF looking after the PAF budget, flight safety, training institutes and media affairs.

Safdar Anjum had challenged Arshad Malik's appointment in the SHC.