Pakistan Air Travel Growth Among World's Fastest
IATA (International Air Transport Association) forecasts Pakistan domestic air travel will grow at least 9.5% per year, more than 2X faster than the world average annual growth rate of 4.1% over the next 20 years. The Indian and Brazilian domestic markets will grow at 6.9% and 5.4% respectively.
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In a clear sign of Pakistan's rising middle class choosing air travel, the number of domestic and international air travelers in Pakistan grew by 8% to 17.9 million in fiscal year 2013-14 compared to previous year, recording the fastest growth in passenger traffic in the last three years, according to data provided by the Civil Aviation Authority (CAA) and published by Pakistan's Express Tribune newspaper. Growth in air travel is pushing new airport upgrades and new construction to handle more passengers. Examples of new or upgraded airports include Islamabad, Multan and Sialkot.
Chinese domestic air travel market will surpass the US market to claim the number 1 spot by 2030, according to figures released by by IATA. Currently the ninth largest market, India will see a total of 367 million passengers by 2034, an extra 266 million annual passengers compared to today. It will overtake the United Kingdom (148 million extra passengers, total market 337 million) to become the 3rd largest market around 2031.
Pakistan International Airlines, the nation's state-owned carrier, is continuing to lose both market share and money in the midst of explosive growth in air travel. Pakistan's private carriers Shaheen, Air Blue and Indus Air and foreign carriers like Emirates and Saudia have benefited at the expense of PIA.
"It is an exciting prospect to think that in the next 20 years more than twice as many passengers as today will have the chance to fly. Air connectivity on this scale will help transform economic opportunities for millions of people," IATA chief Tony Tyler said in his comments on the report. In 20 years' time, "we can expect aviation to be supporting around 105 million jobs and USD six trillion in GDP," he said.
Sensing the opportunity, the government of Pakistan has recently announced a new national aviation policy, NAP 2015, to attract new investments in the aviation sector. It reduces or eliminates a number taxes and duties on investments. Announcing the policy, Prime Minister Nawaz Sharif said: “The present taxes and duties on the aviation sector are unjustified, and a major hurdle in the growth of travel and cargo handling through air.”
The NAP 2015 offers a bilateral “Open Skies Policy” to other countries, based on reciprocity; a level playing field for domestic and national airlines, and the liberalized aviation sector by allowing markets to determine the price, quality, frequency and range of air services options; and taxes structured and simplified in line with the best international practices to promote transportation, spur GDP growth and create jobs.
It's good to see that the aviation sector in Pakistan is finally beginning to get the attention it deserves as a growth market to increase investment, improve service to travelers and create new jobs.
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Riaz Haq
Pakistan plans to privatise its loss-making national carrier Pakistan International Airlines (PIAa.PSX), the government said on Monday, as the country also seeks to outsource its airport operations in line with an IMF deal.
https://www.reuters.com/business/aerospace-defense/pakistan-privati...
The privatisation decision was taken at a meeting of the Cabinet Committee of Privatisation chaired by Finance Minister Ishaq Dar.
The committee "after deliberation decided to include Pakistan International Airlines Co. Ltd in the list of active privatisation projects of the ongoing privatisation programme, following an amendment in the law by the Parliament," a finance ministry statement said.
The committee also backed the hiring of a financial adviser to process the transaction of Roosevelt Hotel, New York, an asset of the PIAInvestment Limited, it added.
Pakistan hopes to resume PIA flights to Britain in the next three months after services were suspended following a fake pilot scandal.
The PIA flights to Europe and the UK have been suspended since 2020 after the European Union's Aviation Safety Agency revoked the national carrier's authorisation to fly to the bloc following the pilot licence scandal.
The privatisation of a state-owned enterprise, the PIA, which has accumulated hundreds of billions of rupee in losses and arrears, comes after Pakistan agreed to fiscal discipline plans with the International Monetary Fund.
Pakistan secured a $3 billion IMF bailout in June.
Reporting by Asif Shahzad in Islamabad and Baranjot Kaur in Bengaluru Editing by David Goodman, Mark Potter and Alistair Bell
Aug 7, 2023
Riaz Haq
Airline seeks flights to smaller cities
https://tribune.com.pk/story/2501376/airline-seeks-flights-to-small...
KARACHI:
A domestic airline already operating in Pakistan has sought approval from the CAA to launch flights to smaller airports using low-capacity aircraft.
The move aims to provide air travel options for passengers currently relying on buses, trains, and cars for long journeys from the North to the South of the country.
During a press conference on Monday, Director General of the CAA Nadir Shafi Dar addressed several matters concerning Pakistan's aviation sector. It was his first formal media briefing since the CAA's recent restructuring into two divisions.
Dar announced that airports in smaller cities, including Sukkur, Multan, Faisalabad, and Sialkot, and more remote regions like Gwadar, Gilgit, and Skardu, would soon offer regular air services.
An existing airline has already requested permission to operate small aircraft on these routes, with plans to introduce flights for up to 40 to 50 passengers by early 2025.
The airline will initially deploy at least three small aircraft, with services expected to begin in the second quarter of 2025.
The DG further expressed optimism that more airlines would follow suit, boosting air connectivity for primary and secondary airports across the country.
"Currently, about 30 million passengers travel from the North to the South annually by bus, train, or car. If the airline sets reasonable fares, this route could become commercially viable," said Dar.
He also provided an update on PIA, saying that an audit of all national airline aircraft had been initiated following several incidents of technical landings and other issues.
Oct 15, 2024
Riaz Haq
Sukkur Airport expected to launch international flights soon - Pakistan
https://www.dawn.com/news/1898964
International flights from Begum Nusrat Bhutto Sukkur Airport are expected to begin soon amid plans to expand the airport, it emerged on Wednesday following a Pakistan Aviation Authority (PAA) meeting.
PAA’s Planning and Development Director Abbas Sheikh and other officials visited the Sukkur Chamber of Commerce and Industry today for a meeting and to discuss the airport’s expansion. During the occasion, the chamber’s committee convener, Muhammad Mohsin Farooq, announced that approval was granted for two weekly flights from Sukkur to Jeddah beginning from July this year.
He credited the development to the efforts of Sukkur Chamber of Commerce President Khalid Kakezai and former president Bilal Waqar Khan.
The officials also discussed expansion plans for the Sukkur Airport, including building cargo terminals and runways to facilitate cargo flights.
The officials directed that estimates be provided for products exported from Sukkur and surrounding areas to develop a comprehensive development plan for passenger and cargo flights.
Former president of the Sukkur Chamber of Commerce, Abdul Fatah Sheikh, highlighted the various products exported from the city, including dates, cotton, rice, pickles, fruits, vegetables, fish, and handicrafts, which are currently exported through Karachi, Multan, and Faisalabad.
However, with the airport’s expansion, these products will be exported directly from Sukkur, he said.
In 2019, Pakistan International Airlines launched direct international passenger flights from Sialkot International Airport to Europe.
Apr 1