The issues with Pakistan International Airlines (PIA) began in 1991 when Nawaz Sharif, while inaugurating Karachi airport, announced an open sky policy. This was a significant shift for PIA, which had been born out of monopoly and was not prepared for competition. The airline was used to receiving delegations from outside and having agreements already in place before meetings. However, the open sky policy led to increased competition and PIA struggled to adapt.

One of the major issues was the decision to grant additional flights to other airlines. For instance, a commitment was made to give Dubai 10 additional flights. This decision, among others, led to PIA becoming more of a family airline, with a cumulative loss of 800 billion rupees. This loss is so significant that it would take a century of profits to offset it.

The airline also faced challenges with its crew. For example, Singapore Airlines has a strict policy where a crew is issued a 6-year uniform with the expectation that they maintain their fitness to fit into the uniform. PIA, however, increased the age limits for its crew, leading to older crew members who were less fit. This has resulted in many passengers choosing not to travel with PIA.

Another significant issue is the power of the Pakistan Airline Pilots’ Association (PALPA). PALPA is a strong body within PIA and has significant influence over the airline’s operations. For instance, PALPA has a policy that pilots will not do more than 10 hours of duty time, even though Pakistan Civil Aviation allows 12 hours. This has led to increased costs for PIA as they have to accommodate these restrictions.

In terms of expenses, PIA spends a significant amount on its staff. For example, out of 15,000 employees, 200 pilots make up 1.5 percent of the total staff in numbers but take 25 percent of the salary. This is because pilots are highly paid employees and have strong connections with influential people.

There have also been instances of corruption within PIA. For example, there have been cases where parts for planes have been ordered multiple times but only delivered once. There have also been instances where planes have been purchased at inflated prices.

In conclusion, PIA faces a multitude of challenges, from increased competition due to the open sky policy to issues with its crew and the influence of PALPA. The airline also struggles with high expenses, particularly in relation to its staff, and has been plagued by instances of corruption. These issues have contributed to the significant losses faced by PIA and pose significant hurdles for the airline’s future. It’s clear that significant changes are needed if PIA is to overcome these challenges and return to profitability. However, the path to achieving this is fraught with difficulties and will require strong leadership and a clear vision for the future of the airline.