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_____________Pakistan's Biggest Blunder

________________________________________By M.Taj



The recent decision to purchase eight Boeing 777 by PIA has to go down as one of the biggest blunders in aviation history both financially and commercially not withstanding the political agenda behind the decision.

To be fair to PIA but not it’s chairman, the decision had all the hall marks of the current climate of capitulation to every whim and desire of the Bush administration by the Pakistan enforced military leadership. President Musharref made the point that we should not make rash decisions and every thing should be weighed up in its context in the wake of the 9/11 fiasco. Yet he has not turned his words into actions.

The purchase of the Boeing 777 by PIA is a clear indication as to who the Governmet is really working for. Every financial commentator in the aviation industry was at a loss to explain how Pakistan came to spend 2 billion dollars on aircraft cost 250 million dollars a piece when the same aircraft could have been purchased at a quarter of the price from the likes of American, United or Delta who are desperate to off load these aircraft types. Each one of the Delta, United and American airlines b777 is less than 4 or 5 years old comparatively brand new in airliner age. The aircraft have been “worked in” meaning all problems associated with those aircraft in service have surfaced and been dealt with - they are tried and tested. It is said that the United Airlines, a US airline company after canceling its fleet replacement and expansion program due to massive recession in the international airline sector had offered to sell three new B777 to the PIA at a price of $86 million a piece (against $250 million a piece the PIA will be paying to the Boeing company under the deal it had inked on November 16), and was also willing to further reduce it by another $5 million.

So why does PIA, who have a history of buying used aircraft all of a sudden feel that they can go straight to Seattle and get them of the Assembly line. The Answer is simple because Mr Bush, who is more concerned about keeping the Americans employed, said so. Two billion dollars on the already huge debt that our coming generations will never be able to get rid off is a shameful act of treachery.

But wait there is more to this treacherous act. PIA had supposedly shaken hands with Airbus industries to purchase the Airbus A310, which fits in perfectly with the routes of PIA especially the lucrative Middle East sectors. So infuriated by PIA (Pakistan’s) decision to renege on the handshake were the Europeans that they immediately retaliated by halving Pakistan’s export quota’s into the European market. According to an EU diplomat ‘We feel betrayed by the PIA deal, we think PIA went back on a gentleman's agreement with Airbus and buckled under political pressure from US. We feel since we had helped Pakistan at the time of its need, Pakistan should have been more considerate in dealing with us.’ What they mean is that at the time when the US was slapping every kind of sanction on Pakistan it was the French and the Germans that still dealt with Pakistan. This to them is a slap in the face. In short when Bush no longer needs Pakistan again they will again put us on ice and this time we won’t have the Europeans to turn to either. I would like to know how the people of Pakistan would benefit from spending 2 billion dollars on Aircraft that the vast majority of the 100 million Pakistani’s would not even see let alone travel on. Would the 2 billion not be better spent on desperately needed things like schools and hospitals, oh I’m sorry that would benefit the people of Pakistan and not the Americans and our rulers I am sure you would get a good telling of from the BOSS!!

The chairman of PIA, who has since being given the job at PIA, recently cooked the books to show a profit. He has achieved this by cutting back on employee allowances, putting them in very basic third rate accommodations abroad, allowing the interior of the PIA aircraft’s to deteriorate to an unacceptable level, so it seems looking at the very poor interior conditions of the B747-300’s, cutting back on re-fits and interior maintenance. He wants us to believe that he is some kind of miracle worker for turning in a profit and that he has magically because of his, so called management skills, turned the airline around, therefore in some twisted way justifying the Pakistani regime's capitulation to the Americans at putting another 2 billion dollar mill stone on top of the already heavy burden of debt on the people of Pakistan.

I urge all Pakistani’s to write to the chairman of PIA at PIAC headquarters Karachi demanding an explanation to:-

Why Airbus was dealt the way they were and the subsequent cost to Pakistan
Why when we were offered the same Aircraft for 86 million, PIA chose to Pay 250 million per aircraft.
Why the B777 when the Airbus aircraft fit much better into the lucrative mid east sectors
and finally when is PIA going to get a proper management instead of handpicked corrupt personnel

One final note, Even if the Pakistani decision makers received 5% KICKBACK on this deal alone it amounts to staggering 100 million dollars. Wow! It even puts Asif Zidari to shame.
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For further Article in the worlds Finance sectors who are laughing at Pakistanis Stupidity
Check out

http://www.satribune.com/archives/dec02_08_02/P1_piastory.htm

And it’s subsequent discussion on:-

http://www.satribune.com/thread.jsp?forum=3&thread=274

Or discuss this on our forums by clicking on the link below

http://fspakistan.proboards20.com/index.cgi?board=aviation6

MAY ALLAH HELP PAKISTAN!

Copyright M.Taj 2003 (www.flightsimpakistan.com) .