PIA CEO cannot have two jobs, says SC

Incumbent Chief Executive Officer (CEO) of Pakistan International Airlines Corporation Limited (PIACL) has been asked whether he likes to retain the post of the CEO of the national flag carrier or of Air Marshal of Pakistan Air Force (PAF).

A three-judge bench of the Supreme Court, headed by Chief Justice Gulzar Ahmed, heard Air Marshal Arshad Mehmmod Malik's appeal against the Sindh High Court (SHC) order, which had restrained him from performing functions as the CEO of PIACL.

The chief justice told Naeem Bukhari, Arshad Malik's counsel, to tell his client to disconnect himself from the PAF, and then serve the PIA as its full-fledged CEO.

"He cannot have two jobs," said the CJP.

Salman Akram Raja, representing the Board of Directors of the PIACL, informed the court that Air Marshal Arshad Malik was appointed as the CEO of PIA on secondment from the PAF.

The bench noted that the appointment of an Air Marshal on secondment shows the carelessness of the federal government that it desires to run PIA on an ad hoc basis.

The secondment can be recalled any time by the parent department, the PAF.

The court observed that the very nature of work the CEO of PIA has to perform is such that a permanent CEO is required, who fully devote to PIA and turn it into some semblance of a commercial airline which is profitable and provide easy travel facility to the passengers with reasonable charges.

Meanwhile, Salman Akram Raja submitted report about the missing plane.

However, the bench expressed dissatisfaction over it, saying that the airline is not being run in a professional way.

The court said the PIA aircraft were misused and even a plane was taken out of the country by its ex-CEO for personal excursion and the plane remained at an airport in Germany for months.

The chief justice noted that the PIA aircraft were used as family property.

The former prime minister took a PIA plane to London for his personal tour, he remarked.

During the proceeding, Raja argued that during his tenure the incumbent CEO had taken action against employees who are holding fake degrees.

Justice Sajjad Ali Shah said unless the airline was overhauled completely and the issue with the unions sorted out nothing would happen.

The chief justice observed that the plane that remained in Germany was given to an Israeli for making a movie.

He also noted that the cost of flying and parking the plane in Germany exceeded its selling price.

Raja told the apex court that the PIA board was reviewing why the plane was parked at a German airport for so long.

Justice Gulzar remarked that the national flag carrier had grounded four planes and details of three were still missing.

Raja said after getting the detail the court would be informed about the matter. He told the court that two planes were added to the airline's fleet after a gap of five years.

The court questioned why the man in uniform was brought to PIA.

Raja explained that in the past serving officials of the PAF who served PIA took the airline to a great height.

The serving officers from the PAF and the army had also served the ministries other than the Ministry of Defence and civil departments and establishments.

Justice Sajjad asked was this your argument that the unions would not let PIA run its affairs if there was no army stick.

He noted that if army officers had to run every organization then why not close down the civilian departments.

Justice Sajjad further remarked if your argument is that when army men sit on top the institutions function smoothly, then better shut down civilian departments.

The chief justice stated that when the army officers took control of Pakistan Steel Mills then nothing was delivered, and the mill which was earning billions in profit suffered loss.

The case was adjourned until 1st week of March.

PIA report

According to a report submitted by the Board of Directors of PIACL for selling an A310 aircraft registration No AP-BEQ Model 1992 an international tender was floated on 31st July, 2016, but no bid was received.

The second tender was floated on 09-11-2016 as a consequence of which one bid was received for airframe from M/s Mittel Deutsche Flughafen AG for Euro 47,500 and one bid was received from M/s Firefily of $157,500 for all the engines and Auxiliary Power Units (APUs) that were mentioned in the tender.

As the aircraft had reached its retirement age, therefore, authorization for the last sortie to Germany was obtained from the Civil Aviation Authority of Pakistan (CAA).

After the filming was done on the plane in Malta, the plane flew to Leipzig, Germany on 5th December, 2016 where it remained positioned.

At the same time, an agreement was made to charter the same aircraft to a UK-based company for use of the aircraft in a film being shot in Malta from 25-11-2016 to 05-12-2016, while it stopped over Malta en route to Leipzig, Germany for an amount of Euros 210,000 which was received by the PIACL.

In pursuance of the agreement, the then management allowed the aircraft to fly to Leipzig, Germany via Malta where it was to be used in the shooting of the film.

The PIACL received Euro 210,000 on account of the use of aircraft in the film.

It is submitted that PIA pilots and engineers went with the aircraft to position it as per the plan, which included its filming as well.

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