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.

Source: CAA Via Express Tribune 

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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Comment by Riaz Haq on July 15, 2021 at 5:48pm

#Pakistan's Alvir Airways gets operating license, eyes ERJ (#Brazil-made Embraer regional jets).
It plans to operate from 3 hubs (#Karachi, #Lahore, & #Islamabad) to 3 destinations (#Gwadar, #Skardu, & #Turbat) - to promote #tourism & regional air access. https://www.ch-aviation.com/portal/news/105836-pakistans-alvir-airw...

Pakistani startup Alvir Airways (Karachi Int'l) has been granted a Tourism Promotion and Regional Integration (TPRI) operating license by the Pakistan Civil Aviation Authority (PCAA), according to a statement issued by the regulator.

Under the National Aviation Policy of 2019, the license is valid for five years until June 2026, read the statement issued by PCAA spokesman Saad Bin Ayub.

According to the PCAA, Alvir Airways intends to acquire two unspecified Embraer jets for the startup of operations and will add more of the type in time.

The airline plans to operate from three hubs in Pakistan, namely Karachi Int'l, Lahore Int'l, and Islamabad Quaid-e-Azam Int'l to three destinations - Gwadar, Skardu, and Turbat - to promote tourism and regional air access. Alvir Airways will be pitched against PIA - Pakistan International Airlines (PK, Islamabad Quaid-e-Azam Int'l) which currently holds 100% of the market share in terms of weekly seat capacity at Gwadar, Skardu, and Turbat, according to the ch-aviation capacities module. PIA serves Skardu twice weekly from Faisalabad, daily from Islamabad, 3x weekly from each of Karachi and Lahore, and weekly from Sialkot, the ch-aviation schedules module reveals. PIA also serves Gwadar 4x weekly from Karachi; and Turbat weekly from Islamabad and thrice-weekly from Karachi.

The PCAA said Alvir Airways was granted the license in line with a vision by Prime Minister Imran Khan to promote tourism and regional connectivity. It was presented by PCAA Director-General Khaqan Murtaza and other dignitaries to Alvin Airways Chief Executive Officer Tehseen Awan, Managing Director Syeda Huma Batool, and Chief Operating Officer Shahzaib Mahmood at the regulator's head-office in Karachi on July 12, 2021.

Speaking at the event, Awan said that Alvir Airways would start domestic flights in the first phase before purchasing more aircraft. He said the company aimed to provide employment in the aviation sector and become a major player in the Pakistan aviation industry.

The company has begun recruiting staff on its website, which, however at this stage, gives no further insight into its corporate set-up.

Neither the company, nor Awan were immediately available for comment. Awan currently holds the position of managing director of Vetworld, an animal health company, according to his LinkedIn profile.

Comment by Riaz Haq on July 15, 2021 at 8:24pm

What is a Regional Aircraft and what are the opportunities?
The regional aircraft market continues to be a key growth sector within commercial aviation, contributing significantly to efficiencies in the airline networks and ensuring safe and seamless mobility, while respecting environmental obligations.


https://www.cleansky.eu/regional-aircraft

Regional carriers typically operate aircraft, such as regional jets and turboprops, with a seating capacity ranging from 20 to 130 seats, on short to medium-haul routes. By the end of 2015 the regional aviation world fleet comprised of about 9000 units (4350 turboprop and 4650 regional jet) representing more than 33% of the worldwide commercial fleet and performing over 40% of total commercial flights (and 25% of total flight hours).

In the recent past the annual worldwide traffic served by regional aviation exceeded 700 billion ASK (Available Seat Kilometres). Only in Europe were regional carriers able to offer more than 120 billion ASKs to passengers, with an average distance of 320 NM (about 600 km) and more than 200 million people flew on regional aircraft within the European network.

Regional aviation demonstrated its strongest traffic growth over the last two decades. In the next 20 years regional air traffic is expected to triple at an average yearly rate of 6% (compared to a 5% rate in total commercial aviation), generating a market demand of about 9000 new regional aircraft (with a market value of about € 360 billion, averaging € 18 billion per year).

The regional market is currently led by non-European players, with the exception of turboprop manufacturer ATR (a 50/50 Joint Venture between Leonardo and Airbus Group). For Europe‘s aeronautical industry there‘s a clear and urgent need to invest in developing new technologies in order to recover global leadership.

The integration of innovative and affordable technologies in future aircraft platforms is a key success factor for manufacturers as it increases the appeal and customer benefits, providing a better inflight experience for passengers. Furthermore, airlines derive significant economic advantages from operating modern aircraft which are more efficient, eco-friendly, easier and cost-efficient to manage and maintain, saving money through the reduction of operating costs.

New and improved technologies positively impact all these elements, contributing to a reduction in operating costs through lower fuel burn, reduced maintenance costs, reduced navigation and airport fees as a result of structural weight savings due to innovative aircraft configurations and the use of lighter materials.

All these benefits and economic advantages will be even more evident for regional turboprop aircraft that are typically less expensive to operate than regional jets. Technological enhancements also appeal to passengers who can enjoy a better inflight experience thanks to improved comfort and lower cabin noise levels, and this means less noise in and around airports too.

Clearly, investment in developing new technologies represents a fundamental differentiator for European aeronautic manufacturers in order to maintain or even to increase their competitive advantage against non-European players. Over the coming years, Europe‘s technological leadership will gain an increasingly relevant role and will contribute to a substantial market-share increase in the regional aircraft segment with consequent job creation.

In a future characterised by extensive use of innovative technologies, regional aviation‘s potential market will increase to more than 10,000 units over the 2025-2050 timeframe, and the market-share of a new European regional turboprop program will rise to 30-40% - doubling what it is today.

Comment by Riaz Haq on September 3, 2021 at 7:35am

#Pakistan's Lakson Group, Air Arabia to start a new low-cost #airline. Fly Jinnah will operate as a joint venture using low-cost model of Air Arabia. It'll promote travel & #tourism sector and contribute to the country’s #economic growth and #job creation. https://www.reuters.com/world/middle-east/pakistans-lakson-group-ai...

Pakistan's Lakson Group and Middle Eastern budget carrier Air Arabia (AIRA.DU) said on Friday they would launch a low-cost airline serving domestic and international routes from Pakistan.

The new carrier, Fly Jinnah, will operate as a joint venture between the pair, they said in a statement, adopting the low-cost model operated by Air Arabia.

The statement said the new airline would help Pakistan’s travel and tourism sector and contribute to the country’s economic growth and job creation.

Air Arabia operates from Sharjah and Ras Al Khaimah in the United Arab Emirates, and has similar joint ventures in Abu Dhabi, Egypt, Morocco and Armenia. Its shares are listed on the Dubai Financial Market.

The airline has been pushing ahead to expand in the wake of the coronavirus outbreak last year as low-cost carriers bet on a post-pandemic surge in travel.

Comment by Riaz Haq on June 11, 2022 at 4:47pm

Bilal I Gilani
@bilalgilani
In one decade PIA has lost 25% of its fleet

2 / 3 rd of available seat and passengers who got on to a PIA

Yet we continue to put tax money to save this

https://twitter.com/bilalgilani/status/1535718850351837187?s=20&...

Comment by Riaz Haq on June 25, 2022 at 6:38pm

A new runway at Faisalabad International Airport will be completed by October this year, enabling Boeing 777 aircraft to land, said Airport Manager Muhammad Anwar Zia.


Addressing Faisalabad Chamber of Commerce and Industry (FCCI) here on Thursday, he added that the air cargo complex was also under construction and 75% of the work was expected to be completed before the runway becomes operational.

Zia expressed satisfaction over the available passenger load and air cargo and said that 102 domestic and international flights were successfully operating from Faisalabad airport.

Zia expressed satisfaction over the available passenger load and air cargo and said that 102 domestic and international flights were successfully operating from Faisalabad airport.

He said the old runway could only accommodate small planes, which prompted authorities to construct a new runway for wide-bodied aircraft, in view of the projected increase of passengers and air cargo from the city and its catchment areas.

---------------

The new runway will be completed by October this year, enabling Boeing 777 to land at Faisalabad International Airport.

This was stated by airport manager Muhammad Anwar Zia at a meeting with FCCI officials on Thursday.

He said the air cargo complex was also under construction and 75 per cent of the work would be completed before the runway becomes operational.

He expressed satisfaction over the available passenger load and air cargo and said the airport was in a deficit of Rs220 million when he was posted here.

“It is now earning a profit of Rs2 billion,” he said and added that presently 102 domestic and international flights are operating from this airport facility in a month. He said that only small planes could land on the old runway, prompting authorities to construct a new runway.

He said a study was conducted to evaluate the passenger load before contacting international airlines. At that time the available passenger load was only 70,000 which jumped to 500,000 and is now expected to cross the mark of 800,000 within the next few years. He said that in a similar pattern, we must calculate the available tonnage of air cargo so that the airlines could be convinced to launch a dedicated air cargo service from this port.

He asked the FCCI to share data on air cargo so that a comprehensive study could be finalised. Four planes can be parked at a time and more facilities will also be arranged after calculating the passengers and air cargo shipments, he said.

https://www.dawn.com/news/1696356/faisalabad-airport-to-get-new-runway

Comment by Riaz Haq on July 18, 2023 at 1:59pm

Pakistan's international passenger traffic was 11 million and domestic was 6 million in 2021-22:

https://caapakistan.com.pk/upload/AT/stats/2021%20-%202022-APT.pdf



India's was 22 million international and 166 million domestic in 2022.



https://www.statista.com/statistics/588028/passengers-boarded-by-ty...



High domestic air traffic depends on two factors: territorial size (distances) of the country and the quality of its land transportation infrastructure. Both these factors cause Indian domestic air traffic to be higher than Pakistan's

Comment by Riaz Haq on August 7, 2023 at 6:56pm

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

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