The document discusses the plight of Pakistan's aviation industry and PIA in particular. It notes that PIA is struggling financially with accumulated losses of Rs. 360 billion and is at risk of bankruptcy. It argues that the National Aviation Policy (NAP-2015) is not solely to blame for the industry's problems as claimed by some critics. While NAP-2015 aimed to boost the industry, wholehearted implementation has been lacking. The document suggests conducting a performance audit of PIA and PCAA followed by a turnaround plan with international specialists, as has worked for other airlines. Timely action is needed to address weaknesses and stop the bleeding before it's too late.
This AGCS report focuses on safety developments in commercial aviation around the world. It identifies a number of insurance claims trends which are impacting the industry – including the top causes of financial losses – and highlights a number of risk trends and challenges that will impact the aviation sector and insurance landscape in future.
The findings have been produced with the assistance of Embry-Riddle Aeronautical University, the world’s largest fully-accredited university specializing in aviation and aerospace.
This AGCS report focuses on safety developments in commercial aviation around the world. It identifies a number of insurance claims trends which are impacting the industry – including the top causes of financial losses – and highlights a number of risk trends and challenges that will impact the aviation sector and insurance landscape in future.
The findings have been produced with the assistance of Embry-Riddle Aeronautical University, the world’s largest fully-accredited university specializing in aviation and aerospace.
Civil Aviation industry in India is growing at an accelerating rate and the country is getting the benefits of its improved connectivity. India has become the world’s third largest domestic aviation market in term of the number of tickets sold. The Civil Aviation Industry has come in new era of expansion, driven by factor such as low cost carriers, modern airports, Foreign Direct Investment in domestic airlines, and growing emphasis on regional connectivity.
The Ministry of Civil Aviation is responsible for the administration of the aviation industry in India. It plays a significant role in formulation of national policies and programmes for development and regulation of aviation industry. The following are the principal regulatory authorities functioning under the authority of the Ministry of Civil Aviation:-
• Directorate General of Civil Aviation
• Airport Authority of India
• Airport Economic Regulatory Authority
A detailed report of the Aviation industry of INDIA with a comprehensive analysis of "Indigo Airline". How India is maturing itself in this industry and what new ways are being taken by government to revive the same.
What are the greatest challenges facing the future of the corporate aviation ...1BlueHorizon Group
Leonard Favre Speech at Middle East Corporate Aviation Summit (MECAS 2012) - Al Bateen Executive Airport Abu Dhabi (Aeropodium conference - www.aeropodium.com)
A discourse on aviation with the Nigeria aviation safety initiaitive (NASI)Dung Rwang Pam
Excerpts of the discourse between 'Leadership Magazine' editor and the Chair governing council of the Nigeria aviation safety initiative (NASI) Capt. Dung Rwang Pam over the state of the Nigerian aviation industry. Rather long winded, but you be the judge..
Sectoral analysis - The Civil Aviation Industry in IndiaSharon D'Costa
MBA, PGDM - Business Design project, 2nd Trimester, 2010.
This project involved extensive primary and secondary research and analysis conducted over 2 months. Information was obtained from airline officials, social networks, passengers & frequent flyers worldwide, aviation authorities, and the Ministry of Civil Aviation in India, apart from extensive online research of the Global aviation industry.
Civil Aviation / Air Transport Industry is supporting over 58 million jobs and $2.4 trillion in global GDP, the air transport industry is a driver of the global economy. A third of all global trade by value is sent by air and aviation is a key component of global business.
NOTE This Industry overview is only a starting point for your an.docxhenrymartin15260
NOTE: This Industry overview is only a starting point for your analysis. Environment and industry issues can change rapidly and some of the information here may therefore be out-of-date.
You MUST supplement this information with additional research.
The Airline Industry
4940- Summer, 2014
Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes vastly improved techniques for their design and construction. Following World War II, the first commercial airplane routes were set up in Europe. Over time, air travel has become so commonplace that it would be hard to imagine life without it. The airline industry certainly has progressed. It has also altered the way in which people live and conduct business by shortening travel time and altering our concept of distance, making it possible for us to visit and conduct business in places once considered remote.
The airline industry exists in an intensely competitive market. In recent years, there has been an industry-wide shakedown, which will have far-reaching effects on the industry's trend towards expanding domestic and international services. In the past, the airline industry was at least partly government owned. This is still true in many countries, but in the U.S., all major airlines have come to be privately held. The U.S. airline industry has been in a chaotic state for a number of years. According to the Air Transport Association, the airline industry’s trade association, the loss from 1990 through 1994 was about $13 billion, while from 1995 through 2000, the airlines earned about $23 billion and then lost about $35 billion from 2001 through 2005. Against this backdrop of poor financial performance, dramatic changes in industry structure have occurred. Growth in air passenger traffic has outstripped growth in the overall economy and the U.S. airline industry remains in the midst of an historic restructuring. Over the last five years, U.S. network airlines have reduced their annualized mainline costs excluding fuel by more than 25%, or nearly $20 billion.
While some of the cost savings realized in the industry were the product of identifying greater operational efficiencies, most of the savings were generated by renegotiation of existing contractual arrangements with creditors, aircraft lessors, suppliers and airline employees and achieved either through the bankruptcy process itself or under threat of bankruptcy. A portion of industry capacity still operates in bankruptcy. But, it is down from a high of 46 percent in 2005. As a result, several carriers that were near liquidation now have lower cost structures that should allow them to show improved performance.
Economic profile of the Air line industry: The airline industry has always exhibited cyclicality because travelers' demand is sensitive to the performance of the macro economy yet airl.
Civil Aviation industry in India is growing at an accelerating rate and the country is getting the benefits of its improved connectivity. India has become the world’s third largest domestic aviation market in term of the number of tickets sold. The Civil Aviation Industry has come in new era of expansion, driven by factor such as low cost carriers, modern airports, Foreign Direct Investment in domestic airlines, and growing emphasis on regional connectivity.
The Ministry of Civil Aviation is responsible for the administration of the aviation industry in India. It plays a significant role in formulation of national policies and programmes for development and regulation of aviation industry. The following are the principal regulatory authorities functioning under the authority of the Ministry of Civil Aviation:-
• Directorate General of Civil Aviation
• Airport Authority of India
• Airport Economic Regulatory Authority
A detailed report of the Aviation industry of INDIA with a comprehensive analysis of "Indigo Airline". How India is maturing itself in this industry and what new ways are being taken by government to revive the same.
What are the greatest challenges facing the future of the corporate aviation ...1BlueHorizon Group
Leonard Favre Speech at Middle East Corporate Aviation Summit (MECAS 2012) - Al Bateen Executive Airport Abu Dhabi (Aeropodium conference - www.aeropodium.com)
A discourse on aviation with the Nigeria aviation safety initiaitive (NASI)Dung Rwang Pam
Excerpts of the discourse between 'Leadership Magazine' editor and the Chair governing council of the Nigeria aviation safety initiative (NASI) Capt. Dung Rwang Pam over the state of the Nigerian aviation industry. Rather long winded, but you be the judge..
Sectoral analysis - The Civil Aviation Industry in IndiaSharon D'Costa
MBA, PGDM - Business Design project, 2nd Trimester, 2010.
This project involved extensive primary and secondary research and analysis conducted over 2 months. Information was obtained from airline officials, social networks, passengers & frequent flyers worldwide, aviation authorities, and the Ministry of Civil Aviation in India, apart from extensive online research of the Global aviation industry.
Civil Aviation / Air Transport Industry is supporting over 58 million jobs and $2.4 trillion in global GDP, the air transport industry is a driver of the global economy. A third of all global trade by value is sent by air and aviation is a key component of global business.
NOTE This Industry overview is only a starting point for your an.docxhenrymartin15260
NOTE: This Industry overview is only a starting point for your analysis. Environment and industry issues can change rapidly and some of the information here may therefore be out-of-date.
You MUST supplement this information with additional research.
The Airline Industry
4940- Summer, 2014
Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes vastly improved techniques for their design and construction. Following World War II, the first commercial airplane routes were set up in Europe. Over time, air travel has become so commonplace that it would be hard to imagine life without it. The airline industry certainly has progressed. It has also altered the way in which people live and conduct business by shortening travel time and altering our concept of distance, making it possible for us to visit and conduct business in places once considered remote.
The airline industry exists in an intensely competitive market. In recent years, there has been an industry-wide shakedown, which will have far-reaching effects on the industry's trend towards expanding domestic and international services. In the past, the airline industry was at least partly government owned. This is still true in many countries, but in the U.S., all major airlines have come to be privately held. The U.S. airline industry has been in a chaotic state for a number of years. According to the Air Transport Association, the airline industry’s trade association, the loss from 1990 through 1994 was about $13 billion, while from 1995 through 2000, the airlines earned about $23 billion and then lost about $35 billion from 2001 through 2005. Against this backdrop of poor financial performance, dramatic changes in industry structure have occurred. Growth in air passenger traffic has outstripped growth in the overall economy and the U.S. airline industry remains in the midst of an historic restructuring. Over the last five years, U.S. network airlines have reduced their annualized mainline costs excluding fuel by more than 25%, or nearly $20 billion.
While some of the cost savings realized in the industry were the product of identifying greater operational efficiencies, most of the savings were generated by renegotiation of existing contractual arrangements with creditors, aircraft lessors, suppliers and airline employees and achieved either through the bankruptcy process itself or under threat of bankruptcy. A portion of industry capacity still operates in bankruptcy. But, it is down from a high of 46 percent in 2005. As a result, several carriers that were near liquidation now have lower cost structures that should allow them to show improved performance.
Economic profile of the Air line industry: The airline industry has always exhibited cyclicality because travelers' demand is sensitive to the performance of the macro economy yet airl.
Federal Aviation Administration (FAA) NextGeneration Air Tra.docxlmelaine
Federal Aviation Administration (FAA) Next
Generation Air Transportation System
From SEBoK
Case Studies > Images/sebokwiki-farm!w/favicon.ico > Federal Aviation Administration (FAA) Next Generation Air
Transportation System
Lead Author: Brian White
This article describes a massive undertaking to modernize the air traffic management enterprise.
The topic may be of particular interest to those involved in air transportation whether in connection
with their careers or as pilots or passengers on airplanes. For addition information, refer to the
closely related topics of Enabling Businesses and Enterprises and Enterprise Systems Engineering.
Contents
1 Background■
2 Purpose■
3 Challenges■
4 Systems Engineering Practices■
5 Lessons Learned■
6 References■
6.1 Works Cited■
6.2 Primary References■
6.3 Additional References■
Background
This case study presents the systems engineering and enterprise systems engineering (ese) efforts in
the Next Generation (NextGen) Air Transportation Systems by the Federal Aviation Administration
(FAA 2008). NextGen is an unprecedented effort by multiple U.S. federal organizations to transform
the U.S. air transportation infrastructure from a fragmented ground-based navigation system to a
net-centric satellite-based navigation system. This project is unique to the FAA because of its large
scale, the huge number of stakeholder(s) involved, the properties of the system of interest, and the
revolutionary changes required in the U.S. Air Transportation Network (U.S. ATN) enterprise.
A sociotechnical system like the U.S. ATN is a “large-scale [system] in which humans and technical
constituents are interacting, adapting, learning, and coevolving. In [such] systems technical
constraints and social and behavioral complexity are of essential essence”. (Darabi and Mansouri
2014). Therefore, in order to understand changes in the U.S. ATN it was seen as necessary to view it
through a lens of evolutionary adaptation rather than rigid systems design. The U.S. ATN serves
both military and commercial aircraft with its 19,782 airports, including 547 are commercial
airports. Nineteen major airlines, with more than a billion dollars in annual total revenue, along with
http://www.sebokwiki.org/wiki/Case_Studies
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http://www.sebokwiki.org/wiki/Federal_Aviation_Administration_(FAA)_Next_Generation_Air_Transportation_System
http://www.sebokwiki.org/wiki/Federal_Aviation_Administration_(FAA)_Next_Generation_Air_Transportation_System
http://www.sebokwiki.org/wiki/Enabling_Businesses_and_Enterprises
http://www.sebokwiki.org/wiki/Enterprise_Systems_Engineering
other 57 national and regional airlines, transport 793 million passengers and realize 53 billion
revenue ton-miles.
The Air Traffic Organization (ATO) is responsible for ensuring aircraft navigation in the U.S.
National Air Space (NAS) system using a five-layer architecture. Each ai ...
Similar to The plight of the policy; and PIA's predicament (14)
All the following core courses are covered in the Graduate Certificate program:
o Airport Management
o Applied Economics in Aviation
o Air Carrier, Passenger and Cargo Management
o Global Logistics and Supply Chain Management
o Aviation Applied Finance
o Production & Procurement
o Strategic Marketing Management
o Human Factors in Aviation
Each course comprises of 20 contact hours conducted on 4 Saturdays. The entire Graduate Certificate course is thus completed in approximately 8 months.
Aviationizing Pakistan - Bridging the gap between the Aviation Industry and the Academia, through an extensive awareness opportunity for the youth as well as general populace. Indeed, the Human Resource demand far exceeds the current supply of trained, educated and groomed professionals. This Expo being held at PAF Museum on September 25, 2016 is a step in that direction. Education, training and HR Development is the next logical step to reach our goal of enhancing Aviation, that in turn enhances socio-economic growth of the country.
Recent developments in Aviation & Aerospace portend a transformational change in the future of air travel. A quantum jump in technology, safety, efficiency, speed, economy and customer centricity are anticipated. Since Aviation has a positive correlation to a nation's GDP, it continues to be a catalyst and a potent business enabler. Therefore, HR will have to trained, educated and developed to cater for the expected fast and positive cultural change that is destined to come sooner than what most of us can imagine. Education to Aviationize the youth is becoming more important than ever. Aviationizing is a new term coined to express the following concept:
Aviationizing is a comprehensive process of bringing about a holistic cultural change through Aviation Awareness, Education and HR Development to achieve socio-economic growth & prosperity for the nation.
A paper was presented at PIA Training Center sponsored by Royal Aeronautical Society. Inter alia other aviation experts and senior industry professionals Air Marshal Daud Pota and Air Marshal Salim Arshad also graced the occasion. Students from various institutes as well the Institute of Business Administration & Aviation Sciences also participated.
Specifically for IBAAS students. Airline Passenger Marketing methods, processes and strategies considered.
Institute of Business Administration & Aviation Sciences
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The plight of the policy; and PIA's predicament
1. The Plight of the Policy, & PIA’s Predicament
Dr. Wali Niaz Mughni, PhD
PIA’s situation is akin to the “Pull-up! Pull-up!” resounding warning signals from EGPWS, (the enhanced
ground proximity warning system, or TAWS, the terrain awareness warning system), that most modern
aircraft have on board. With Shaheen Air International literally slumbering and shrouded in rumors galore,
Serene and Airblue sailing through and reaping the benefits of minimal competition, PIA struggling to stay
airborne, new players facing multiple barriers to entry, General Aviation deteriorating by every passing
day, while the grapevine in the aviation circle continues to portend that the doom’s day for Pakistan’s
commercial aviation is closing in. In the aviation lingo, the flight path of the industry is said to be
approaching CFIT (pronounced ceeFIT), a controlled flight into terrain. The question is: Is it really true, or
is it just a perception?
Today, the politicians, the industry players, and the general public at large are all somewhat accustomed
to hearing the doom and gloom scenario of the aviation industry in general and PIA in particular. A recent
report by Auditor General of Pakistan (AGP) published in a national daily newspaper states that the flag
career’s faulty business model is to be blamed. Accumulated losses of Rs. 360 billion in December 2017
and its rising trend of losses was attributed to a multitude of serious concerns. With PIA Corp Ltd placed
on Pakistan Stock Exchange’s defaulter segment on October 10, 2018 the ground is appearing even closer.
Notwithstanding the accuracy and importance of AGP report, similar audits were also carried out (officially
and unofficially) in the past, but little or no action was implemented seriously to avert the descending
flight path. The results are a testimony of this fact.
The question is, “Can PIA be turned around? Can the newly appointed Air Marshal yank back to pull the
airline up from the disastrous descent? Operating near the stalling speed, piloting the airline certainly
demands nimble handling, failing which, a stall and possibly a grave-yard spin is imminent.
Also, interesting to note are remarks from the so-called industry gurus, stalwarts, as well as free-lance
critics that the National Aviation Policy (NAP-2015) is the culprit and huge losses to the national air career
should also be attributed to NAP-2015. A reality check, and analysis of the impact of the current policy
on Pakistan’s commercial aviation is worth investigating.
To begin with, NAP-2015 was designed and intended to bring about a dramatic boost in the overall
aviation activities, which in turn was expected to enhance the country’s economy. Ownership and market
access liberalization, stringent adherence to international standards, subsidies, taxes and duty
2. exemptions/reduction, emphasis on education, investor friendly environment, greater safety and security
assurance, and above all, a travel and business friendly culture was the strategic direction that Pakistan's
forward-looking National Aviation Policy anticipated to achieve.
While peace-meal and selective implementation of some aspects of NAP-2015 did take place; whole-
hearted acceptance is, to date, far from realization. Well after three years of promulgation of the policy,
poor internal and external stakeholder buy-in of the policy continues to mar expectations of the industry’s
stability, growth, and prosperity. A critical analysis of the stakeholder apprehensions reveals some
alarming and serious concerns. These must be addressed, and an aggressive course correction adopted.
The first apprehension often brought to bear, is the claim that foreign airlines are given unfair advantage
and that the domestic market share that should have been picked up by the national air careers is given
away in the name of Open Skies policy to Emirates and other foreign airlines. Little do we comprehend
that all routings, passenger traffic, frequency of flights, pricing restrictions and other pertinent limitations
and access are the domain of bilateral agreements and not the policy.
Without bilateral (or multilateral) agreements, market access liberalization, simply cannot take place.
Furthermore, the agreements are always planned to be based on the principle of reciprocity and not a
one-way advantage to any partaker. More interesting is the fact that little do we also realize, that more
than 90 bilateral agreements are signed before the policy came into existence and none after the
promulgation of the policy. So, how is policy held responsible for being unfair to national airlines when
there were no bilateral signed after NAP-2015. Even more pertinent is to understand that the policy is
mostly a guideline for the operators and law makers, and certainly it is not an agreement.
The other major complaint is that the Paid-Up capital has been increased many folds (to PKR500 million
for RPT license) and is beyond the capability of most new entrants and may thus form a barrier to entry
(for airlines in particular) to enter Pakistan’s aviation industry.
As an example, say a popular aircraft like Boeing 737-800, depending upon its age, maintenance condition,
and market demand at the time, a broad ball park figure on operating lease would cost in the range of
$150–$350k per month. For ease of calculations, we can take a rather low average cost of $250k per
month. Which comes to (12x250k) $3 million per aircraft per year. If one is starting an airline, the airline
needs to have at least three aircraft so that the airline can provide adequate, reliable, and timely service
to its customers. The cost of just the operating lease of aircraft fleet shall than be $9 million (3000kx3) per
year. All new entrants in the airline business must anticipate at least a year before reaching break-even
figures and must have the financial strength to bear the ensuing losses. With current conversion rate of
$1 = PKR 130 plus, the Paid-Up capital of PKR 500 million (as per policy) is only $3.85 million, which is way
less than half of what the lease payment amount would fall due to the lessor. With operating cost of
approximately $5,000 per hour per aircraft, three aircraft flying around 1000 hours each per year (which
is very low), shall exceed an expense of $15 million. The Paid-Up capital, which is an indicator of financial
strength and acumen of a company, must be high enough to bear the shock of initial set up losses including
sunk costs. Indeed, if we look at the overall cost of operations, PKR 500 million is a meager amount. Of
course, this Paid-Up capital money is a company asset within the company and is to be spent on the
company by the company. Therefore, conclusively, the complaint about Paid-Up capital being high is not
only illogical but it is also highly unreasonable.
3. Another common complaint is the minimum age requirement of twelve calendar years from the date of
manufacture of the aircraft, for induction for a passenger airline.
The chronological age limitation to induct aircraft less than 12 years was introduced for the following
reasons and logical assumptions:
An arbitrary twelve-year period was primarily based on two ‘D' checks (large commercial aircraft’s most
expensive and extensive maintenance check) which are required to be completed on all aircraft (at
approximately 6 years’ chronological age interval, although the new trend by manufacturers is now to
increase the D check time limit to 9-12 years). It is also a fact that at most successful airlines, the average
age of their fleet is less than 8 years. The limiting age also makes business sense for the following reasons:
a) Most newer aircraft (≤ 12 years’ chronological age) are relatively more fuel efficient than their
older counterparts.
b) Most newer aircraft are relatively greener than older aircraft.
c) Most newer aircraft have better navigation and safety equipment installed as compared with their
older versions.
d) The maintenance cost of newer aircraft is generally less than their older counterparts.
e) This also indicates that the aviation business entity that is buying or leasing the aircraft are
financially stronger than those who look for relatively older and cheaper aircraft. Older and
cheaper aircraft will, in all likelihood, have higher maintenance cost, higher fuel consumption rate
and possibly be more prone to accidents.
While there are research studies that have indicated that there is no significant correlation between age
of aircraft and fatal accidents up to 26 years of chronological age (Hansman 2012), there are a few studies
that suggest that there is a positive correlation (Vasigh and Herrera, 2009) in their comprehensive study
on “A Basic Analysis of Aging Aircraft, Regions of the World, and Accidents." Interestingly, the rate of
accidents and the probability of incidents, occurrences, and accidents, drop significantly just after 6 years
(i.e. after first ‘D' Check). The study was conducted on a global database of 549 aircraft accidents analyzed
between 2000 and 2007.
With reference to the study stated above, it appears that statistically and historically, the safest period in
the life of an aircraft is just after the first ‘D’ Check. Thus, when the policy states less than 12 years it is
assumed that businesses desirous of inducting aircraft for RPT (Regular Public Transport) operations
would like to induct aircraft just after the first ‘D’ Check. Induction of such aircraft would have the highest
probability of safety (least accident probability).
Another study (Vasigh & Herrera 2009) also clearly indicates that Pakistan falls in a region where the
probability of accidents is one of the highest in the world. Thus, to mitigate other factors and reduce the
probability of occurrence, all possible measures must be undertaken for ensuring greater safety.
Therefore, it can be concluded that twelve-year chronological age limitation for induction of aircraft is a
positive step and must be taken in the right spirit.
Notwithstanding all the logic and rationale for the age limit, policy is by no means a word from the holy
scripture that cannot be changed and amended. It can be debated and corrected if the industry has a
better logic for a better overall result.
4. Some non-aviation pseudo specialists even criticize the wet lease limitation and ask for limitless wet
leasing option in their fleet. ‘Wet lease’ means giving jobs to foreigners at the cost of increasing the
specific unemployment rate of our cabin and cockpit crew. Therefore, such an option must be restrictive
to protect the trained and skilled human capital. However, this clause was relaxed in the National Aviation
Policy-2015. The limit of maximum number of wet leased aircraft was increased from 25% to 50% of the
fleet capacity and from 90 days to 180 days. This has given the operators greater flexibility to enhance
capacity during high seasons and shed the same during lean seasons. Almost all countries in the world
follow similar restrictive wet lease option. Thus, the criticism on wet lease is baseless.
Therefore, it is proven beyond doubt that the policy is not the cause of aviation’s declining trend. Not
implementing the laws and regulations in line with the policy could be a cause of hastening the downfall
of Pakistan’s aviation to this lowest ebb ever.
PIA’s big predicament of privatization or turn-around, looms in the minds of the top hierarchy of the
country. But with almost $3 billion in the red, takers for PIA is a far cry. Therefore, privatization is not an
option. And with such deep-rooted problem areas and ingrained inefficiencies, turn-around too is not
easy. One possible way out is to declare PIA bankrupt and raise another airline with a similar brand name
but as an entirely new entity. Good assets of PIA may be transferred to the new airline along with the
minimum required human resource, but on a contract basis rather than offering a permanent employee
status. This will keep the unions and associations at bay, and they would not be able to manipulate the
management in the proverbial ‘the tail wags the dog’ type scenario. Start afresh with thorough
professionals and an honest managerial hierarchy.
There is a famous management saying that ‘if you cannot measure, you cannot control.’ Performance
audit and not sheer routine accounting audit of PIA and PCAA is what is needed to identify and measure
all the pain points and specific bleeding areas that need to be fixed and plugged.
With appropriate of Terms of Reference, a think-tank of strategic and operational planners specifically in
the realm of aviation, along with internationally renowned airline turn-around specialists be constituted
to carry out a detailed and thorough ‘Performance Audit’ of PCAA and PIA, as both the
organizations are critically interlinked and dependent on the overall aviation industry’s growth and
performance. This Performance Audit must be followed by a clearly stated course-of-action for
implementation of a sound strategy and operational actions to turn-around PIA, PCAA, and the aviation
industry.
After all, remaining in the same environment, Shaheen Air has made decent money in the past, and now
Airblue and Serene are comfortably afloat; their load factors and revenue streams are certainly positive.
While a number of pitfalls, some obvious and some subtle, are prevalent and pervasive, but the overall
aviation’s performance still has the potential to bounce back and grow.
Lessons from the brink-of-bankruptcy Malaysian Airlines’ dramatic turn-around by Indris Jala, and 100%
government owned Ethiopian Airlines’ sustained success and growth are just a few cases in point. The
turn-around specialists are not only wary of the deficiencies and frailties in the system but also know how
to plug the holes and stop the bleeding.
‘We know it all’ attitude, with an ego higher than the aircraft’s absolute ceiling is a sure recipe for disaster;
leaders and strategists must decide to leave the ego behind and team up with reputable, internationally
5. known specialists to carry out a professionally sound Performance Audit, identify the weak areas, and
implement a turn-around action-plan for PIA and the aviation industry. A note of advice for the decision
makers: time is of essence; and a bold action based on scientifically persuasive cogent arguments /
recommendations is in order.
About the Author:
Dr. Wali N. Mughni, is a Top Gun fighter pilot who voluntarily took early retirement from Pakistan Air
Force to pursue advanced studies at Embry-Riddle Aeronautical University, USA where he earned his MBA
followed by PhD specializing in Aviation Management. He has the distinction to work for NASA on Human
Factors’ research; he has also spearheaded several educational institutions and aviation companies. He is
currently a senior faculty member at PAF-KIET university and he is also the Dean & Director of the Institute
of Aviation Management.