ISLAMABAD, Dec 31: The Supreme Court was surprised on Monday when it was informed that affairs of the Pakistan International Airlines were being run by the people who had been appointed to top positions on a temporary basis.

The incumbent chairman and managing director of PIA are overseeing the affairs of the airline on a provisional basis. Defence Secretary Lt-Gen (retd) Malik Asif Yasin is chairman of PIA as well as ex-officio director general of the Civil Aviation Authority (CAA).

The court observed that it was a violation of section 8 of the PIA’s own Act of 1956.

Mr Yasin was appointed chairman on Oct 23 this year.

Likewise, Captain Junaid Younus, a pilot, was appointed PIA’s managing director on Oct 24 — a day after the selection of the chairman.

“Subject to all just exceptions in respect to the appointments of the two incumbents, prima facie we are of the opinion that both the assignments are full time jobs and not part time particularly in view of the legal position and also the deteriorating condition prevailing in PIA,” said an order dictated by Chief Justice Iftikhar Muhammad Chaudhry.

A three-judge bench had taken up applications filed by the Transparency International (TI) and PML-N Secretary General Iqbal Zafar Jhagra and Marvi Memon of the same party highlighting rampant corruption in the national flag carrier. Advocate Raja Bashir represented PIA while Advocate Obaidur Rehman Abbasy appeared on behalf of the CAA.

“PIA will never run efficiently till the time it is run independently,” the chief justice observed. The airline management should pay compensation to the passengers for delayed flights, he said.

The court asked the secretary defence to appear before it on January 14 and explain how it could be possible to make PIA a profitable organisation without a full time chairman and managing director.

Both the chairman and the MD are required to appear in person to justify their appointments in accordance with the law which governs the airline.

Before the appointment of Lt-Gen (retd) Yasin, the court noted, Air Chief Marshal (retd) Rao Qamar Suleman served PIA as its chairman but resigned after a brief period of two and a half months.

Similarly, Capt Nadeem Khan officiated as PIA managing director from Feb 17 last year to March 24 this year. He was flying planes but made director general of the CAA subsequently.

Prior to Rao Qamar Suleman, Defence Minister Chaudhry Ahmed Mukhtar served the airline as its chairman for two terms which ended on May 25 this year. Ordinarily, the term of the chairman expires after three years.

“These facts suggest that no serious efforts were ever made by the federal government to appoint a full time chairman and MD to improve the debilitating financial health of the airline,” the court regretted.

As a result, it noted, the number of aircraft had reduced to 28 from 40 and that of its destinations in 27 countries to 37 from 45 because of non-availability of business in some destinations.

“The ratio of 450 employees in each PIA aircraft is the highest in the world,” the court said, adding that the total number of employees in the airline was over 17,000 plus 2,734 daily-wagers. About 3,168 people have been employed in PIA since January 1, 2008. PIA has 551 pilots for 28 aircraft.

Total losses suffered by the airline has risen to Rs140 billion this year from Rs100 billion by the end last year.

The court directed the CAA’s counsel to submit a fresh shakedown report on the airline prepared by authority.

The court was also angry over the lack of transparency in appointments of sales agents for PIA in foreign countries as well as in Pakistan.

“It is not difficult to understand why the condition of PIA has not improved,” the court regretted.