Pakistan Air Travel Forecast to Grow Faster Than South Asia, World

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.

Related Links:

Haq's Musings

Pakistan's Middle Class Grows to 55% of Population

Saving PIA, Education and Railway

E-Commerce Growth in Pakistan

Pakistan's Official GDP Figures Ignore Booming FMCG Sector

Musharraf Accelerated Human and Economic Development in Pakistan

Pakistan's Growing Middle Class

Pakistan's GDP Grossly Under-estimated; Shares Highly Undervalued

Fast Moving Consumer Goods Sector in Pakistan

3G-4G Roll-out in Pakistan

Mobile Money Revolution in Pakistan


Riaz Haq said…
Air Arabia announced today that the city of Multan in Pakistan will join its route network next month, bringing the total number of destinations in the country served by the region’s first and largest low-cost carrier to six.

Located on the banks of the Chenab River, Multan is home to more than three million people and is Pakistan’s fifth largest city. It is an important cultural and commercial centre with a strong economy largely based on industry and agriculture.

Multan joins Karachi, Peshawar, Sialkot, Lahor and Islamabad as Pakistani cities served by regular direct Air Arabia flights from Sharjah and Ras Al Khaimah International Airports.

Adel A. Ali, Group Chief Executive Officer of Air Arabia, said: “With a population of more than 180 million and within just a few hours flight time from the UAE, Pakistan has always been a promising market for Air Arabia. We have established a comprehensive network of destinations spanning the country and brought Air Arabia’s value for money proposition within easy reach of millions of people flying between the UAE and Pakistan. We look forward to further investing in increasing our reach in Pakistan by offering more destinations and flights in the near future.”

Starting May 1, 2015, Air Arabia will operate services to Multan on Sundays, Mondays, Wednesdays and Fridays. Flights will depart Sharjah International Airport at 04:45 and land in Pakistan at 08:20. Return flights will operate on the same days, leaving Multan International Airport at 09:00 before arriving in Sharjah at 10:50. Local Time.

2015 has witnessed a number of significant additions to the Air Arabia network. In January, it was the first low-cost airline from the Middle East and Africa to enter the Chinese market with the launch of services to Urumqi, the largest city in Western China. The carrier also added Isfahan and Sanandaj in Iran and Gizan in Saudi Arabia in the first quarter of the year, as well increased the frequency of services on a number of existing routes.
Riaz Haq said…
The government sold its entire stake in the country’s largest private-sector bank for $1.02 billion Saturday, the biggest so far in a series of divestitures planned to help revive Pakistan’s economy.

The government approved a strike price of 168 Pakistani rupees, about $1.68, per share, for its 41.5% stake, or 609 million shares, in Habib Bank Ltd. on Saturday, compared with the floor price of 166 rupees, or $1.66, set at the start of book-building, which began Tuesday.

Pakistan’s privatization minister Mohammad Zubair said the stake was “heavily oversubscribed,” with offers worth $1.6 billion for 955 million shares, of which $1.2 billion was offered by foreign investors.

“This is by far the largest in Pakistan’s history, the demand that we got,” Mr. Zubair said. “It’s also the largest for any Asian frontier market country.”

Of the $1.02 billion raised, the finance ministry said $764 million was foreign investment.

“The bulk of this money, $764 million dollars [from international investors], will boost foreign exchange reserves, which will stabilize the currency further, which in turn will have a positive impact on inflation,” Mr. Zubair said.

Pakistan had $16.7 billion in total liquid foreign exchange reserves as of April 3, according to the central bank.

Prime Minister Nawaz Sharif’s government has made privatization and divestitures from as many as 31 state enterprises major components of its plan to boost Pakistan’s economy, especially its foreign exchange reserves. Mr. Sharif’s government has already sold shares in United Bank, Allied Bank and energy company Pakistan Petroleum Ltd. A plan to sell a portion of the government’s stake in the Oil and Gas Development Co. Ltd., the country’s largest oil and gas business, for $800 million was abandoned in November because of poor investor demand.

The sale of the government’s Habib Bank stake is Pakistan’s largest capital market transaction in a decade, officials said. The government is currently working on the privatization of Pakistan International Airlines, Pakistan Steel Mills and several power distribution companies, finance ministry and privatization commission officials said.

Brokers and analysts said interest in the Habib Bank shares was boosted by strong participation by foreign investors.

“The response was far better than earlier expected. Nobody expected that it could cross a billion dollars,” said Mohammed Sohail, chief executive of Topline Securities, a brokerage based in Karachi, Pakistan. “Investors globally are looking at Pakistan positively, especially because of the gradual economic recovery over the last two years.”

Habib Bank has Pakistan’s largest deposit base and the most extensive network of branches. It has operations in 29 countries, according to the bank’s website. The Aga Khan Fund for Economic Development bought a 51% stake in the bank when it was privatized in 2004.
Riaz Haq said…
UAE’s budget carrier Air Arabia has added Pakistani city of Quetta to its list of destinations, making it the Sharjah-based carrier’s seventh destination in Pakistan.

“We now have seven of Pakistan's biggest cities covered with direct services from two airports in the UAE and we hope to add more in the future as part of our ongoing commitment to serve the country,” said Adel A. Ali, Group CEO of Air Arabia.

Quetta services will commence on Wednesday, June 17, 2015.

Quetta joins Karachi, Peshawar, Sialkot, Lahore, Islamabad and Multan as Pakistani cities served by direct Air Arabia flights from Sharjah and Ras Al Khaimah airports.

On May 21, another UAE carrier, Flydubai, announced direct flights to Quetta in Pakistan from June 11, 2015, with three flights a week.
Riaz Haq said…
The UAE has updated air service agreement with Pakistan allowing open skies approach on new points in Pakistan including Quetta, Turbat, Gwadar, Panjgur as well as increased passenger capacity to Karachi, Faisalabad, Multan and Sialkot.

The two-day negotiations between both parties resulted in signing an updated air service agreement between Pakistan and the UAE. Saif Mohammed Al Suwaidi, director-general, General Civil Aviation Authority (GCAA), signed the agreement on behalf of UAE while Amjad Ali Toor, additional secretary for aviation division, signed on behalf of Pakistan. The signing ceremony was also attended by UAE ambassador to Pakistan Isa Basha Al Noaimi, Khaleej Times reported. Al Suwaidi stressed the importance of this updated agreement which will contribute to boost trade, tourism and investment between UAE and Pakistan.

During his visit, Al Suwaidi toured the new airport in Islamabad which will be inaugurated in the second half on 2016 with a capacity to handle 50 million passengers.

Ms Laila Ali bin Hareb Al Muhairi, assistant of director-general of strategy and international affair at GCAA, said that UAE ranks second internationally in term of open skies agreements.

“UAE is driven more than ever to continue its international collaboration in air transport and shall continue its far-reaching and sound advances toward opening and liberating skies with countries of the world,” she added.
Riaz Haq said…
#UAE's Air Arabia set to expand flights to #Pakistan. New flights to #Quetta, #Faisalabad added.

UAE-based Air Arabia has named Faisalabad as the latest city to join its rapidly growing Pakistan route network.
When flights to the country's third largest city start in October, Faisalabad will join Islamabad, Karachi, Lahore, Multan, Peshawar, Quetta and Sialkot as Pakistani cities served from the UAE by the low-cost carrier.
Faisalabad is a city of more than two million people located in the province of Punjab. A major centre of industry and manufacturing, the city is estimated to contribute approximately one fifth of Pakistan's total GDP.
"Air Arabia has a long-standing commitment to serve the Pakistan market and we are proud to operate an exceptionally comprehensive route network covering the length and breadth of the country," said Adel A Ali, Group CEO of Air Arabia.
Riaz Haq said…
Having secured additional rights of operations from the Pakistani government, Dubai-based international airline, Emirates, is all set to deprive the domestic carriers, including Pakistan International Airlines, Shaheen Airlines and Air Blue, of their share in the industry.

Emirates, which started its operations in March 1985 after getting two planes from Pakistan International Airlines (PIA), now operates in 78 countries with 3,300 flights per week.

Recently, the Civil Aviation Authority (CAA) has given it additional rights to operate in Quetta, Panjgur, Turbat and Gwadar, diverting the local passengers from the national carriers to Emirates for direct flights to Dubai and other countries of the world.

“This is a big loss to the Pakistani airlines including Shaheen and PIA as the passengers of these cities were using services of national carriers. Three American airlines are fighting against Emirates’ operations in USA, but the Pakistani government was giving more and more rights to Emirates. This is not fair,” said a PIA official.

“On the other hand, the government has been trying to privatise PIA for the last several years. Is the government trying to sell off the country to foreigners or what? How are the domestic stakeholders supposed to flourish if the government keeps on facilitating international companies?” he questioned.

According to CAA, on June 5, 2015, Bilateral Air Services Agreement talks between Pakistan and United Arab Emirates were held in Islamabad. The talks were held in a friendly and cordial atmosphere regarding all outstanding issues.

Landmark changes in the new agreement include opening up four airports of Balochistan; Quetta, Panjgur, Turbat, and Gwadar, to five airlines of UAE for unlimited operations, a CAA official said, adding that this will facilitate the citizens of these districts to fly abroad directly from their hometowns.

However, the CAA official said that traffic rights to the airlines of UAE for Lahore, Islamabad and Peshawar have been frozen at the current level for the time being due to infrastructural constraints at these airports. For Karachi, the open skies arrangements between Dubai and Karachi concluded in 1998 remains intact.

“Pakistani airlines, on the other hand, will enjoy unlimited traffic rights from all airports of Pakistan to all airports of UAE. Our airlines would also be free to operate beyond UAE to any other country of the world,” he added.

“The additional services to Karachi and the introduction of Multan to our network will position Pakistan as Emirates’ fourth most highly served country worldwide with 80 return flights a week operating between Dubai and Pakistan,” said West Asia and Indian Ocean Commercial Operations Senior Vice President Ahmed Khoory.

Moreover, the three big US airlines – Delta Air Lines, United Continental Holdings and American Airlines Group – alleged that Emirates, Etihad, and Qatar airlines received more than $42 billion in “unfair subsidies” from the Gulf government. As a result, the Gulf carriers are able to take the US airlines’ market by offering cheap flight fares, which does not make economic sense.

However, the three Gulf airlines completely denied all the allegations. The US airlines also requested the United States government to review the Open Skies agreement, through which Gulf carriers operate in US.

Emirates President Tim Clark told reports on the sidelines of an International Air Transport Authority (IATA) meeting that the airline will submit a detailed report to the US government in response to US airlines’ accusation that it was one of the carriers receiving unfair subsidies from the Gulf government. Earlier last week, Etihad also submitted a 60-page report to the US government to counter the US airlines’ allegation.
Riaz Haq said…
After building privately-funded airport, #Sialkot exporters to launch privately-funded airline #Pakistan

Local exporters have decided to launch a private airline with the collaboration of the Sialkot International Airport Limited (SIAL).

Sialkot Chamber of Commerce and Industry (SCCI) President Fazal Jilani told newsmen here on Wednesday that the airline – Sialkot International Airline – would be formally launched within the next two weeks.

He said it would be another mega project by the local businessmen after the establishment of the airport.
Riaz Haq said…
State-owned airline Pakistan International Airlines’ (PIA) privatization plans have been postponed until mid-2016, following what the government described as “legal obstacles in finalizing the transaction structure.”

In 2014, the Pakistan government agreed to a sell off parts of various strategic state-owned assets, including power corporations and steelmakers as well as PIA. The move to divest corporations was a condition of a $6.7 billion loan deal with the International Monetary Fund made in 2013.

Pakistan Minister of State for Privatization Mohammad Zubair said at the time of the agreement that the sale of PIA would commence in mid-2015. “The process is absolutely on and financial advisers are performing their job, [working on] the Pakistan International Airlines (PIA) sale,” he said.

In 2014, Pakistan’s Prime Minister Nawaz Sharif gave approval for the airline to take five new Boeing 777 aircraft, in addition to an agreement for 13 leased Airbus A320s, of which the fifth was delivered in June 2015.

“With newer versions of fuel-efficient aircraft, the employees will have to put in extra efforts for turning around the corporation [prior to sale],” PIA managing director Shahnawaz Rehman said.

But government intervention and factional delays have pushed the timeline back twice already, with the original deal for a restructuring prior to a 26% IPO sell-off still subject to internal opposition and political wrangling.

In the meantime, the airline is posting continuing losses—in the first quarter, it lost PKR2.1 billion ($206 million) taking its total losses to date to $2.1 billion.
Riaz Haq said…
BEIJING (Online) – Air China on Saturday announced it would launch four new Asian routes in October, connecting Beijing to more destinations in south and southeast Asia.

Flights linking Beijing and Karachi, Pakistan, will launch on Oct. 26 with three flights every week. It will stop in the country’s capital Islamabad.

The Beijing-Mumbai, India, route will be launched on Oct. 25, with four flights every week.

On the same day, flights will also begin connecting Beijing with Kuala Lumpur, Malaysia, with four flights every week.

On Oct. 27, another route linking Beijing with Colombo, Sri Lanka, will begin, with three flights every week.
Riaz Haq said…
#Bahrain's Gulf Air plans to launch two new #Pakistan routes. #Multan #Faisalabad …

The addition of direct services to the cities of Faisalabad and Multan are scheduled to launch in December, the airline said in a statement.
The airline will operate four weekly direct flights to Multan and three weekly services to Faisalabad, it added.
Ahmed Janahi, chief commercial officer, said: "We are committed to serving the Pakistan market, as we have done since our first entry in 1960.
"Accordingly, we are delighted to supplement our existing operations - catering to passenger demand from across the country.
"I would like to extend our thanks to the Pakistan authorities and Pakistan Civil Aviation Authority for facilitating and supporting this new development that I am confident will be well received by passengers."
The new launches will take the carrier's total number of Pakistan destinations to seven in addition to Karachi, Lahore, Islamabad, Peshawar and Sialkot.
Gulf Air flights to Multan, Pakistan's fifth largest city by population, and Faisalabad, a major industrial and manufacturing hub, will be operated by an Airbus A320 aircraft.
Gulf Air said in August that its year-on-year losses reduced by 30 percent in the first half of 2014.
The airline's revenues increased by 10 percent during the same period, its chairman said in a statement without giving specific figures.
Riaz Haq said…
Gulf Air starts new #Pakistan flights to/from #Faisalabad, #Multan airports

Bahrain national carrier, Gulf Air, said on Tuesday it recently started flights to Pakistani cities Multan and Faisalabad.

The two new flights increases Gulf Air’s services to Pakistan to seven. It also flies to Karachi, Lahore, Islamabad, Peshawar and Sialkot.

The flights to Multan and Faisalabad are operated by an Airbus A320, a narrow body single aisle aircraft, according to an emailed statement.

Multan is Pakistan’s 5th most populated city and Faisalabad is a major industrial and manufacturing hub.
Riaz Haq said…
#Pakistan Steel Privatization Stalled. No production. $3.5 billion debt. $5 million weekly loss via @Reuters

Once the producer of almost half the country's steel needs, state-owned Pakistan Steel Mills' (PSM) cavernous factory buildings on the outskirts of Karachi stand eerily still.

A 4.5 km-long (2.8 mile) conveyor belt that once carried coal from the nearby port is idle and blast furnaces rest silent. Birds build nests in Soviet-era equipment and stray dogs nap outside abandoned plants.

The company is for sale, but the government cannot find a buyer as it struggles to get privatizations back on track after a series of setbacks. A glance at PSM's finances may explain why.

The company has $3.5 billion in debt and accumulated losses, loses $5 million a week and has not produced steel at its 19,000-acre facility since June last year. That was when the national gas company cut power supplies, demanding payment of bills of over $340 million.

Like many Pakistani industrial firms, political meddling and competition from cheaper Chinese imports left PSM vulnerable.

They also undermine Prime Minister Nawaz Sharif's promise to the International Monetary Fund to privatize PSM by March, in return for a $6.7 billion national bailout loan agreed in 2013.

More than 14,000 jobs are at risk, while the Pakistani economy needs industrial growth to provide employment for a growing population.

"Nine billion rupees ($86 million) are immediately needed to see the company through to June," company CEO Zaheer Ahmed Khan told Reuters at its sprawling premises.

"It's really sad, it's a national asset. We are a nuclear power but what does it say that we can't operate a small steel mill?"


The government has injected $2 billion into PSM since a failed selloff in 2006, but cannot invest more capital, Privatization Commission Chairman Mohammad Zubair said.

"The best option is to privatize so that private sector buyers inject capital to upgrade the plant and machinery, buy raw material and so on," he said.

PSM is one of several firms Pakistan wants to sell to revive loss-making entities that cost the government $5 billion a year.

But it has struggled to restructure bleeding companies, including PSM and Pakistan International Airlines (PIA), and get them in shape for potential buyers.

This month, Pakistan shelved plans to privatize power supply companies, and officials said Islamabad told the IMF it would not meet deadlines to sell PIA or PSM.

While the loss-making firms are a drain on Pakistan's resources - around an eighth of the government's fiscal revenues last year - few fear Pakistan will slide into economic crisis.

The IMF has continued to release installments of its 2013 bailout package despite missed targets, and Pakistan is exploring other sources of support, like ally China which plans to invest $46 billion in a new economic corridor.


Designed and funded by the Soviet Union in the 1970s, PSM was once the pride of the nation, showcasing a rapidly industrializing Pakistan with the means to produce a basic building block for the future.

Across the site, signs implore workers to believe steel will make Pakistan stronger. The firm's motto is "Yes, I can."

The facility has the capacity to expand to produce 3 million tonnes of cold and hot-rolled steel annually, against today's 1.1 million tonnes, CEO Khan said. At 3 million tonnes, PSM would become "very profitable".
Riaz Haq said…
#Pakistan saw 23% growth in airline passengers in 2015; #Gwadar airport growth fastest at 73% #CPEC … via @annaaero

Pakistan’s commercial airports have seen major growth in capacity in the past 12 months, as S15 seat capacity is showing a rise of 23%. Of all the airports in Pakistan, the one that is recording the greatest growth in capacity is Gwadar (13th largest in S15), which is showing an increase in capacity of 73%. A total of eight airports are recording a growth rate over the past 12 months that is greater than 60%, with four of these airports being in the top 12 (highlighted in light green). Only one airport is showing a decline in capacity when compared with S14, Skardu. The 14th largest airport in 2015 was the 11th biggest last year. However, the facility has witnessed a decline in seat capacity of 14% according to OAG Schedules Analyser. In the top 12, the airport order pretty much remains constant, with Multan (+64%), Quetta (+62%) and Faisalabad (+61%) all climbing one place as a result of all of them seeing a growth of over 60%. Turbat is a new airport to the top 12 (13th in S14) as a result of Skardu’s capacity decrease.

After seeing a rise in capacity of nearly 26%, the domestic market is the largest in Pakistan. The country market that is recording the best growth in the top 12 is Sri Lanka. The country pair is served by two routes to Colombo from Karachi and Lahore, with the latter only being launched in November last year with a twice-weekly service operated by Mihin Lanka. Services to Karachi have seen an increase in capacity of 11%, a sector flown by SriLankan Airlines. Of the country markets in the top 12, the only one to show a decline in capacity is Kuwait. In total there are three connections between Kuwait City and Pakistan for S15 (same as in S14), Lahore (-6%), Islamabad (+1%) and Sialkot (-23%). Surprisingly Karachi, the largest airport in Pakistan relating to seat capacity, does not have a direct service to Kuwait.

Over the past 12 months, Turkish Airlines has grown seat capacity out of Pakistan by 38%, beating the MEB3 carriers of Emirates (+13%), Qatar Airways (+28%) and Etihad Airways (+18%). What should also be noted is that Emirates’ sister airline, flydubai (highlighted in light green), has now overtaken Etihad Airways in relation to the monthly seat capacity on offer by both airlines in S15, helped by the carrier reporting a growth in capacity of 66%, and climbing from 12th spot in 2014 to eighth in 2015 in relation to Pakistan’s top 12 airlines. This has been helped in part by the airline recently launching services from Dubai to Faisalabad. Nonetheless the number one out of Pakistan remains the country’s national carrier, Pakistan International Airlines. The airline has reported a growth in capacity when compared to the same time period of last year of 25%. None of the airlines in the top 12 are reporting seat capacity reductions in S15. However, Air Indus is showing a consistent pattern with 0% growth and offering the same amount of seats as S14, but growth from Airblue means that the airline drops to fifth in S15 from fourth in last year.

Riaz Haq said…
Geneva – The International Air Transport Association (IATA) released its updated passenger growth forecast, projecting that passenger numbers are expected to reach 7 billion by 2034 with a 3.8% average annual growth in demand (2014 baseline year). That is more than double the 3.3 billion who flew in 2014 and exactly twice as many as the 3.5 billion expected in 2015.

Previously, IATA forecast 7.4 billion passengers in 2034 based on a 4.1% average annual growth rate. The revised result reflects negative developments in the global economy that are expected to dampen demand for air transport, especially slower economic growth projections for China.
The five fastest-increasing markets in terms of additional passengers per year over the forecast period will be China (758 million new passengers for a total of 1.196 billion), the US (523 million new passengers for a total of 1.156 billion), India (275 million new passengers for a total of 378 million), Indonesia (132 million new passengers for a total of 219 million) and Brazil (104 million new passengers for a total of 202 million).

Seven of the ten fastest-growing markets in percentage terms will be in Africa. The top ten will be: Malawi, Rwanda, Sierra Leone, Central African Republic, Serbia, Tanzania, Uganda, Papua New Guinea, Ethiopia and Vietnam. Each of these markets is expected to grow by 7-8% each year on average over the next 20 years, doubling in size each decade.
In terms of routes, Asian, South American and African destinations will see the fastest growth, reflecting economic and demographic growth in those markets. Indonesia-East Timor will be the fastest growing route, at 13.9%, followed by India-Hong Kong (10.4%), Within Honduras (10.3%), Within Pakistan (9.9%) and UAE-Ethiopia (9.5%)
“The demand for air transport continues to grow. There is much work to be done to prepare for the 7 billion passengers expected to take the skies in 2034,” said Tony Tyler, IATA’s Director General and CEO.
“Economic and political events over the last year have impacted some of the fundamentals for growth. As a result, we expect some 400 million fewer people to be traveling in 2034 than we did at this time last year. Air transport is a critical part of the global economy. And policy-makers should take note of its sensitivity. The economic impact of 400 million fewer travelers is significant. Each is a lost opportunity to explore, create social and cultural value, and generate economic and employment opportunities. It is important that we don’t create additional headwinds with excessive taxation, onerous regulation or infrastructure deficiencies,” said Tyler.
Riaz Haq said…
Middle East’s Largest Air #Cargo Handler to Invest $18M to Double Capacity in #Pakistan By Dec 2017 - via @PKKHTweet

Gerry’s dnata, a 50/50 joint venture between Gerry’s and dnata, has announced its plans to invest $18 million in Pakistan.

The joint-venture, created in 1993, operates in as many as seven airports in Pakistan. Its main domain is handling cargo and luggage of 12 international airlines at Pakistan’s airports.

The company is aiming to double its working capacity by December 2017. For that purpose, they have invested $18 million. The amount will be utilized in buying ground service equipment as well as increasing storage capacity.

“We have placed Pakistan’s biggest order for ground service equipment worth $7 million and are investing another $11 million to double storage capacity of our warehouse at Karachi airport,” said Syed Haris Raza, Gerry’s dnata vice president.

Haris Raza estimates the cargo traded by air in Pakistan to about 10 percent of the total cargo. He also said that around 500,000 tons of cargo is transported by air freight in and out of the country, every year.

The Saudi Arabian Airlines, which operates over 40 flights a week to and from Pakistan, recently decided to outsource its ground handling services to Gerry’s dnata. The investment was made after taking that into consideration.

Riaz Haq said…
#Boeing offers its wide-body #Boeing787 Dreamliner against #Boeing777 to #Pakistan International Airlines

Yesterday, Boeing Co (NYSE:BA) made a switch over attempt, where it offered 787 Dreamliner family wide-body planes against 777-300 model. The offer was made to Pakistan International Airlines (PIA)

In his letter to Pakistan Prime Minister, Muhammad Nawaz Sharif, Boeing Company’s Vice Chairman Ray Conner expressed his inclination towards enhanced cooperation for PIA’s improved performance. Meanwhile, he offered 787 Dreamliner passenger aircraft instead of 777, which was agreed in the previous contract signed in 2006.
PIA – Boeing Relationship
The business relationship between the two companies extends way back in 1961, when PIA placed four planes order for Boeing 707 and Boeing 720. So far, the airline had ordered 11 planes order for Boeing 707/720 family, six planes order for Boeing 737 family, two planes order for Boeing 747 family, four planes order for Boeing DC-10, whereas 13 planes order for Boeing 777 family.
This accumulates to the total of 36 planes of different models, out of which 31 planes are duly delivered by the aircraft manufacturer. For the remaining five 777-300ER model planes, the aforementioned offer was made. The order was initially placed in 2002, which is still undelivered.

Boeing 777 vs 787
According to the company’s official specification, Boeing 777-300ER has 396 passengers capacity; whereas it has the capability to travel 13,650 kilometers distance in one go. Its maximum allowed takeoff weight is 351,530 kilogram. Its official market price as of August 2016 is $339.6 million.
On the other hand, Boeing 787-10 Dreamliner has 330 passengers capacity, having the capability to travel 11,910 kilometer distance in one go. Its maximum takeoff weight was not disclosed, since it is still in the completion mode and is expected to be released later this year. Its official market price as of August 2016 is $306.1 million.
Boeing 787 Excess Inventory Issue
Last week, Boeing CFO Greg Smith attended Jefferies Industrials Conference. In this conference, he disclosed that the company is intended to reduce Boeing 777 family production to halt Boeing 787 family, if both these wide-body aircraft keep depicting lower demand. It is pertinent to note that as of August 2, 2016, the aircraft manufacturer had claimed collective $1.7 billion in after-tax duties against excess Boeing 787 inventory and sluggish Boeing 747 sales, in its 2QFY16 financial results.

It is hereby apparent that PIA had paid more amount to Boeing against which it gets offer of lesser value plane, after 14 years. Furthermore, through 777-300ER, PIA could offer more passengers’ commutation against 787-10 Dreamliner. Besides this, 787-10 Dreamliner delivery will take another couple of years, as it is slated to start deliveries from 2018 onwards.
Riaz Haq said…
#Chinese consortium to launch new #airline in #Pakistan. #China #FDI #CPEC #PIA

Praising the country’s economy as capable of absorbing and capitalising the direct foreign investment, the Chinese investors have expressed their interest in launching a new airline in Pakistan for which they would be discussing modalities with the Government of Pakistan.


The delegation apprised the Prime Minister that they are bringing $3 billion Investment Fund to Pakistan because of the vision of the Prime Minister that focus on infrastructure development and energy sectors.

The Chinese delegation also expressed its intent to explore possibility of starting a new airline in Pakistan after the permission from the Government of Pakistan. The Chinese side said that it is actively pursuing its investments in infrastructure, power, aviation and tourism sectors of Pakistan.

“We fully appreciate the vision of Prime Minister Muhammad Nawaz Sharif which enunciates that economic prosperity is an offshoot of infrastructure connectivity and self-sufficiency in the energy sector,” the members of the delegation stated.
Riaz Haq said…
#Hyatt Announces Plans for 4 New Hotels in #Pakistan. #CPEC #Tourism #Karachi #Lahore #Islamabad #Rawalpindi

Expansion of Grand Hyatt and Hyatt Regency brands in Pakistan in co-operation with Bahria Town key to enhancing worldwide customer preference

Hyatt Hotels Corporation (NYSE: H) announced today plans to expand its Grand Hyatt and Hyatt Regency brands in Pakistan with the signing of management agreements by a Hyatt affiliate for four Hyatt-branded hotels: Grand Hyatt Islamabad, Hyatt Regency Karachi, Hyatt Regency Lahore, and Hyatt Regency Rawalpindi. Bahria Town, one of the largest private developers in Asia, will own the four Hyatt-branded hotels.

“We look forward to collaborating with the Bahria team to open the first Grand Hyatt and Hyatt Regency hotels in Pakistan,” said Peter Norman, senior vice president, acquisitions and development – Europe, Africa, and Middle East (EAME) and Southwest Asia for Hyatt. “Following last year’s announcement for the China-Pakistan Economic Corridor (CPEC), we are optimistic about the growth of Hyatt’s brands in Pakistan. The opening of these hotels will serve as a testament to the global appeal of the Grand Hyatt and Hyatt Regency brands as they continue to expand worldwide and offer more choices to our guests.”

With the announcement a Grand Hyatt and three Hyatt Regency hotels in Pakistan, Hyatt is taking another step in growing its brand footprint in the Middle East and Southwest Asia. The EAME/Southwest Asia region is a significant growth opportunity for Hyatt as the segment accounts for approximately 25 percent of the company’s executed contract rooms base. As of December 31, 2015, the Company had approximately 60 Hyatt-branded hotels under development in EAME/Southwest Asia.

Grand Hyatt Islamabad will be meticulously designed to exemplify the Grand Hyatt brand’s signature level of grandeur with an abundance of options for creating spectacular experiences. Expected to open in 2023, the hotel will offer 400 guestrooms, seven food and beverage outlets, two ballrooms, seven meeting rooms, a spa, fitness facilities, private club, and kids club. Additionally, the hotel will be the first internationally-branded golf resort in Pakistan and will have a state-of-the-art golf club house. The hotel and golf club will be easily accessible from the Murree-Islamabad Expressway, which connects directly to Islamabad's city center and diplomatic area 30 minutes away.

Hyatt Regency Karachi will offer a range of amenities, as well as spaces that will make the hotel a go-to gathering place for any occasion. The hotel will feature approximately 200 guestrooms, a lobby lounge, three-meal restaurant, and more than 17,000 square feet (1,600 square meters) of flexible meeting and event space. The hotel is expected to open in 2023.

Hyatt Regency Lahore will deliver on the modern expectations of today’s travelers and meeting planners.The hotel will feature authentic food and beverage offerings that will build off the Hyatt Regency brand’s history of culinary excellence. The hotel will serve as the perfect venue for a variety of events such as weddings, social banquets, exhibitions, meetings, and conferences. Additionally, the hotel will feature a private club offering food and beverage outlets, tennis courts and banquet facilities, among other amenities. The hotel is expected to open in 2021.

Hyatt Regency Rawalpindi will be designed to connect today’s travelers to who and what matters most to them. The 165-room hotel will offer multiple food and beverage outlets and more than 11,000 square feet (1,100 square meters) of flexible meeting and event space. The hotel is expected to open in 2022.
Riaz Haq said…
New Islamabad Airport will further promote the progressive image of Pakistan: PM

ISLAMABAD: Prime Minister Nawaz Sharif on Tuesday said that the new Islamabad Airport will be an icon of excellence and will further promote the progressive image of Pakistan.

The prime minister expressed these views while chairing a meeting on Pakistan International Airlines (PIA) and aviation affairs at the PM House.

He reviewed the progress on the new airport and was apprised that all construction packages of the new airport are on track. He directed to complete the link road project from Rawalpindi to New Islamabad Airport by March 2017.

New Islamabad airport gets another deadline

The National Highway Authority was also directed to monitor the quality of work on the link road project according to the required standards. The overall performance of the national carrier during the last six months was also reviewed, while the PIA chairman gave a presentation to participants of the meeting and informed that significant increase in revenue has been registered.

Riaz Haq said…

With 2016 already a record year for the tourism sector in Pakistan at the local level, tourism was gradually recovering from the dark era of post September 11, 2001.

The country hopes to once again attract international tourists who had deserted it for the past 15 years, according to an articled published in "Asialyst" a Paris-based Website.

As Pakistan was one of the countries most affected by terrorism, since last year foreign travellers have been returning little by little.

In Karimabad, a small village overlooking the Hunza Valley in the Gilgit-Baltistan province of northern Pakistan, Lal Hussain, 65, looked out at the view of the river and the snow-capped peaks of the Karakoram.

It was the season when the apricot trees were in bloom and the water from the melting of the glaciers irrigated the valley.

With his son and nephews, Lal Hussain runs the Hunza Inn, one of the oldest hostels in Karimabad, established in 1980. "It's not like before," he sighed.

In the past fifteen years, Lal Hussain has lost 80% of his turnover. "Because of the foreign media, tourists have a biased image of Pakistan and are afraid to visit the region," he said.

Seated around the large common table of the Hunza Inn, however, were some Chinese tourists who had ventured into the Pakistani mountains, and Fabrizio, an Italian from Rome.

After travelling extensively in India, Fabrizio was discovering the country for the first time. "It's true that my family was afraid when I told them I was leaving for Pakistan," he said. "But in reality, we don't feel any danger here at all, there is no problem."

He said he intended to hike, relax and visit the region.

Fabrizio was the only European in the village.

Twenty years ago, Karimabad was the gateway for all foreign backpackers and trekkers, said Lal Hussain. "In summer, the high season, we even had to refuse people," he added.

Gilgit-Baltistan region is a paradise for mountaineers.

Located at the junction of the Hindu Kush and Karakoram ranges, between India, China and Afghanistan, it is home to five out of fourteen mountain peaks in the world that are over 8,000 metres high, including the mythical K2.

The hippie trail and the golden age of tourism in Pakistan Lal Hussain's story is one of a flourishing industry that collapsed. Now, it is gradually reviving.

In 2015, Pakistan attracted 5,634 foreign tourists. According to the biennial report of the World Economic Forum, Pakistan ranks 125th in the world in terms of foreign tourists.

From Sindh, with its sandy beaches, to Punjab and its palaces, from the old city of Lahore to the heights of the Himalayas, not to mention the Cholistan desert, the "Country of the Pure" possesses all the trump cards it needs to attract travellers from all over the world, the articled noted.
Riaz Haq said…
World's Biggest Long-Haul Carrier #Emirates Airline started with $10 million in seed capital and a couple of jets leased from #Pakistan #PIA in 1984.

In 1984, Dubai was a backwater, one of the seven city-states that made up the fledgling United Arab Emirates, when its ruler, Sheikh Rashid bin Saeed al-Maktoum, and his son Mohammed decided to start an airline. With $10 million in seed capital and a couple of jets leased from Pakistan, Emirates was created a year later under the leadership of a pair of British expats, Maurice Flanagan and Tim Clark, initially serving regional destinations before making its first flights to London in 1987.

The airline, which is based in Dubai and owned by its government, has become the world’s largest long-haul carrier by never relaxing its grip—on employees, on airplane manufacturers, or on its own ambitions. Emirates recently configured a plane to seat 615 passengers, a record, and flies the world’s most epic nonstop route, an 8,824-mile arc from Dubai to Auckland. Emirates is essentially the only buyer of the largest commercial airliner, the Airbus A380, which it gilds with stand-up cocktail bars and in-flight showers. For every flight departing Dubai, as cabin crew head to their airplanes, the last room they traverse is a hall with mirrors on one side and windows to the tarmac on the other. The space allows workers to inspect themselves for perfection against a backdrop of government-owned taxiways thick with Emirates jets. That’s the airline, in one image: glamour and ambition in a framework of absolute control.

Since 1985, Emirates has grown from a two-plane operation at a desert airstrip into a force whose every movement rumbles through global aviation. The airline’s growth is inseparable from that of Dubai, with both straining the laws of financial and physical gravity. The company’s chairman is Sheikh Ahmed bin Saeed Al Maktoum, the uncle of Dubai’s absolute monarch. He also runs the airport authority, the aviation regulator, and the city’s largest bank, should Emirates ever need a loan. Out in the desert, a half-hour drive from the coast’s skyscrapers and malls, the government is building a $32 billion, five-runway megahub precisely to Emirates’ specifications. Its ambitions are consonant with its name: Dubai World Central. The project will have a capacity of 220 million passengers per year, four times the number that New York’s John F. Kennedy International Airport serves today. Two-thirds of humanity lives within the radius of an eight-hour flight. Among industry veterans, the airline’s rise inspires a respectful awe. “Emirates is unprecedented,” says Tony Tyler, a former chief executive officer of Hong Kong’s Cathay Pacific. “There’s never been anything as huge.”

Yet as Emirates dictates new standards of technology, luxury, and range, it’s finding that more and more is beyond its mastery. Conceived as a titanic bet on the growth of what development economists call the Global South—the Middle East, Africa, South Asia, and Latin America—the airline is at risk if those emerging markets don’t, in fact, emerge. Emirates in May reported its first-ever annual revenue decline and is cutting some of its plans for growth amid slackening demand from sub-Saharan Africa, Turkey, and Brazil. The slump has industry analysts wondering how Emirates will fill the staggering number of planes it has on order. The company has agreed to buy 50 A380s and 174 Boeing 777s, adding to the 92 and 148, respectively, it currently flies. By comparison, British Airways operates 12 A380s, and American Airlines, Delta, and United have zero.
Riaz Haq said…
#Pakistan to launch new private #airline #SereneAir with 125 weekly flights to 7 Pakistani cities … via @chaviation

Serene Air (SEP, Islamabad) will initially serve the domestic Pakistani market before venturing abroad. A Radixx International press release confirming Serene Air's choice of IT systems said the start-up would serve Lahore Int'l, Islamabad, Karachi Int'l, Faisalabad, Quetta, Peshawar, and Skardu with approximately 125 weekly flights initially.

Serene Air will launch with a trio of B737-800s but additional aircraft will provide for its expansion both domestically and, eventually, internationally. Once it has completed its certification, expected during the first half of this year, Serene Air will compete with the likes of AirBlue (PA, Karachi Int'l), PIA - Pakistan International Airlines (PK, Karachi Int'l), and Shaheen Air International (NL, Karachi Int'l).
Riaz Haq said…
New #Islamabad international #airport to be ready for operation by July 2017. #Pakistan … via @epakistantoday

The New Islamabad Airport in Islamabad will be ready for operations by late July.

Around 95pc work on the New, Islamabad International Airport has been completed and the remaining would be done by March 2017.

The facility will then be inaugurated by the prime minister on August 14.

During a high-level meeting to review progress on the new Islamabad Airport and its allied infrastructure at the PM House in Islamabad with officials of the Aviation Division, National Highway Authority (NHA), Islamabad Mayor, and other officials, Prime Minister Nawaz Sharif stated that infrastructure projects were the backbone of our economy and essential for the public.

The premier was informed that the new airport would have a capacity to handle 4,500 passengers at a time with 15 parking bays and terminal gates. Moreover, the airport would be able to accommodate two A-380 aircraft would be able to dock simultaneously. Further, the new airport would have state-of-the-art facilities such as cargo handling, safety and security, passenger facilitation and parking services.

With regards to allied infrastructure for the new airport, the NHA chairman said that the facility would be serviced through two main access road leading off from the M-1 and M-2 motorways. It would also have a road leading from the main GT Road (N-5).

Moreover, the airport can also be accessed through the Islamabad Metro from the Golra Mor. The PM will also inaugurate the new metro link along with the airport on August 14. Nawaz directed that no compromise should be made on the quality of work on the airport, access roads or the Metro Bus link. The prime minister was further informed that work on the new terminal at the Allama Iqbal International Airport in Lahore is expected to commence in March 2017.
Riaz Haq said…
Pakistan air travel data for 2014-15 & 2015-16, according to Civil Aviation Authority:

International Passengers 2014-15 11,695,832, 2015-16 12,703,951

Domestic Passengers: 2014-15 6,339,888, 2015-16 6,937,304

Total: 2014-15 18 million, 2015-16 19.6 million, up 8.8%

Air Cargo:

International: 2014-15 350,000 tons, 2015-16 300,772

Domestic: 2014-15 38,663 tons, 37,694

Total Cargo: 2014-15 388,000 tons, 2015-16 338,467 down 15%
Riaz Haq said…
#Pakistan's private airline #ShaheenAir adds another Airbus A319, increasing its fleet size to 25 aircrafts

Shaheen Air International (SAI) announced on Wednesday that the airline has inducted another Airbus A319 into its fleet.

The airline is also slated to receive five more aircraft of the similar model. Earlier, there was only one A319 Airbus in the fleet of the airline.

"With 24 planes under its auspices, Shaheen Air is brimming with excitement upon receiving their 25th aircraft," said a statement.

The new aircraft comes wrapped in a new livery that builds on the revamped brand identity and philosophy of Shaheen, said the release.

The Airbus A319 has been custom-fitted with thin and linear seats and it can accommodate around 150 passengers in its all-economy segment.

Last month, the company had re-branded itself by launching a new logo.
Riaz Haq said…
Upsurge in the influx of tourists
The Pakistani economy was able to generate approximately $1 billion in revenue because of the 1,040,000 international tourists who arrived in 2015. This tourist figure is projected to reach 1.7 million by the year 2025. This will, in turn, help Pakistan to be the world’s fastest-growing Muslim economy ahead of Indonesia, Malaysia, Turkey and Egypt by 2017.

Improvement in employment rate
In the midst of an increase in tourism and better security conditions of the country, the number of people employed directly by the hospitality industry reached 1,429,500 in 2015. The employment rate is projected to increase by 2.1% per annum over the next 10 years.

Increase in investment
Due to the sheer beauty in Pakistan, the investment which this particular sector received in the year 2015 was USD 3272 million which made up 9.3% of the total investment done in the country. Over the next ten years, this investment rate is forecasted to rise by 7.6% pa over the next ten years. Due to the ongoing CPEC mega project whose main highlight is the Gawadar city, a huge chunk of this investment is allocated to the construction of ten hotels in this city which can in turn boost tourism in the area.
Riaz Haq said…
A total of 19.6 million passengers (6.9 million domestic, 12.7 million international) flew commercial airlines in Pakistan in 2015-16, up from 18 million (6.3 million domestic, 11.7 million international) in 2014-15, according to Civil Aviation Authority (CAA).
Riaz Haq said…
India air passenger data 2015-16

Domestic Passengers 85 million

International Passengers on Indian Airlines 18.3 million

International Passengers on Foreign Airlines 31.5 million

Total international traffic: 49.8 million
Riaz Haq said…
Indian Aviation Market Third Fastest Growing After Russia, China

After being number one in terms of growth for almost two years, the Indian aviation market became the third fastest growing market after China and Russia overtook it in in domestic air passenger traffic between January-March this year.

NEW DELHI (Sputnik) — China's domestic aviation market grew by 15.1% in comparison to Russia's 14.8% and India's 14.6%, the International Air Transport Association (IATA) said in its report.

The Chinese growth is an indication of the reversing economy growth.

"The solid upward trend in traffic is underpinned by ongoing robust growth in the country's services sector, as well as supply developments," report added.

The Indian aviation market grew at its slowest pace since September 2015.

"This is the first possible sign of reduced cash supply and wider economic uncertainty weighing on demand." This refers to the demonetization move initiated by the Narendra Modi government in November 2016 whereas 86% of the currency lost its legal tender status.

Russia posted the second fastest domestic growth in March.

"This recovery is set against an improving economic outlook as oil prices have firmed," the report analyzed.

Narendra Modi government has initiated several measures such as higher foreign investment, new aviation policy, cheaper air turbine fuel and attractive regional connectivity schemes to boost aviation in the country.
Riaz Haq said…
Pakistan's total aviation market grew 8.9% from 2014-15 to 2015-16, according to CAA data.

Pakistan's domestic market increased 9.52% from 2014-15 to 2015-16.

Pakistan's international market grew 8.5% from 2014-15 to 2015-16.

A total of 19.6 million passengers (6.9 million domestic, 12.7 million international) flew commercial airlines in Pakistan in 2015-16, up from 18 million (6.3 million domestic, 11.7 million international) in 2014-15, according to Civil Aviation Authority (CAA).
Riaz Haq said…
IATA’s Passenger Forecasts Indicate Fastest Growing Markets of the Future

As the aviation market and passenger forecasts continue on a path of growth and the demand for air travel doubles over the next twenty years, the biggest demand will be in the Asia-Pacific region.

Based on the latest figures released by the International Air Transport Association (IATA), the United States will remain the largest air passenger market until around 2030, when it will drop to second, behind China. These estimates indicate that the US will carry 18.3 billion more passengers and China 16.9 billion over the next 20 years.

Currently the ninth largest market, India will see a total of 367 million passenger movements by 2034, an increase of 266 million annual passengers compared to today and will overtake the United Kingdom (148 million extra passengers, total market 337 million) to become the 3rd largest market around 2031.

Reflecting a declining and aging population, Japanese air passenger numbers will grow just 1.3% per year and decline from the 4th largest market in 2014 to the 9th largest by 2033.

Germany and Spain will decline from 5th and 6th position in 2014 to be the 8th and 7th largest markets respectively. France will fall from 7th to 10th while Italy will fall out of the top 10 altogether around 2019.

Brazil will increase passenger numbers by 170 million and rise from 10th to 5th. Its total market will be 272 million passengers.

Indonesia will enter the top ten around 2020 and attain 6th place by 2029. By 2034 it will be a market of 270 million passengers.

IATA’s long-term forecasts are prepared for passenger and freight traffic and aircraft movements and their related parameters to support planning in airport, airline, air navigation and other aviation sectors.
Riaz Haq said…
Indian aviation takes off but growth weighs on airports

After a long rough patch, Indian aviation is finally booming, but that burst of growth is now taking a toll on the industry's infrastructure.

High operating costs, intense competition and the collapse of Kingfisher Airlines had weakened both business and civil sectors in previous years, but recently the Indian market has turned a corner into the world's fastest growing, largely thanks to supportive government policies.

India is currently the sole bright spot in Asia's aviation sector, Neil Book, CEO at the largest independent aviation firm JSSI, told CNBC's "Squawk Box" on Wednesday.

Private jet sales are up and the emerging middle/upper classes have witnessed double-digit growth rates in travel, he explained.

The upper middle class made up 8 percent of the population in 2015, and is set to hit 12 percent by 2020, according to Boston Consulting Group. Meanwhile, the ultra-high net worth population--defined as those whose net worth exceeds $50 million--stood at 178,000 in 2016 and will increase 57 percent by 2021, estimates Credit Suisse.

Unlike his predecessors, Prime Minister Narendra Modi has loosened industry restrictions that are set to increase new aircraft deliveries as well as in-service and used business jets, Book continued.

Indeed, 2016 was a landmark year for Indian carriers as Modi unveiled a national civil aviation policy aimed at expanding air travel. Under the policy, domestic airlines are no longer required to log five years of domestic routes before getting an overseas permit, known as the 5/20 rule.

The government also said it would limit base fares on regional routes to 2,500 rupees ($37) per hour of travel in an attempt to make flying more viable for commercial passengers.

As strong economic fundamentals boosts air traffic, India may even overtake Japan this year to become the world's third largest domestic market behind the U.S. and China, the Centre of Aviation (CAPA) stated in a new report.

But the skies aren't entirely clear. The biggest risk to Indian aviation is the same one plaguing the national economy: creaky infrastructure.

"India faces the very real prospect of an airport capacity crisis," CAPA noted. "Slot constraints and congestion are key issues at most metro airports and are expected to remain so for the near term as new terminals and runways will take 2-3 years to develop."

The developments of new airports, such as the Navi Mumbai International Airport, have also been subject to lengthy delays, CAPA added.

Airspace is another potential concern on the supply side, with CAPA recommending that the air navigations services division of the Airports Authority of India be hived-off as a separate entity and corporatized.

If airports remain saturated, choking off air connectivity to India's centers of commerce, industry and tourism, the economic ramifications could be severe, CAPA warned.
Riaz Haq said…
India is buying over 1,000 new planes - but can it handle them?

India is adding airline passengers faster than any other country, and it needs more planes to carry them: 1,080 more, to be precise.
To meet exploding demand, the South Asian nation is set to to buy 2.2 new airplanes for each of the 480 aircraft currently in service, according to a new report by the Centre for Asia Pacific Aviation (CAPA).
The U.S. and China are the only countries to have more pending aircraft orders, the report says.
Boeing, one of the biggest potential beneficiaries of the massive spending spree, is equally optimistic. The manufacturer predicts India will need 1,850 new planes over the next two decades. It values the orders at $265 billion.

The U.S. firm will reportedly agree in the coming weeks to sell 100 planes to Indian carrier Jet Airways. It is also a top contender to sell another 100 to the country's newest airline, Vistara.
Boeing is locked in a battle for India's skies with European rival Airbus, which already has contracts with several Indian carriers.
"We are in constant communications with the airlines in India about their current and future fleet needs," a Boeing spokesperson said Thursday, while declining to comment on individual deals.

The buying frenzy, led by budget airlines like SpiceJet and IndiGo, is not without reason. Around 220 million Indians flew last year -- an annual increase of 20% -- and the country is on track to overtake the U.K. as the world's third-largest aviation market by 2026.
But the race to capture that market is a slippery slope, and CAPA warned that airlines risk biting off more than they can chew.
"Unprecedented expansion will place immense pressure on the aviation system," the report said. "The industry currently appears to be underestimating the challenges ahead."

There are several examples in India's aviation history that serve as a cautionary tale, with Kingfisher Airlines -- the defunct carrier owned by beer baron Vijay Mallya -- being the most recent example.
National carrier Air India is also in a precarious position, and talks of offloading it into the private sector have gathered momentum in recent weeks.

Another huge challenge is a lack of infrastructure. India's aviation boom is severely threatened by the fact that only 75 of its 400 airports are currently operational -- and even the biggest hubs like Mumbai, New Delhi and Chennai are bursting at the seams.
With 700 of India's 1,080 new planes set to be delivered within the next ten years, CAPA said the country's lack of preparedness could quickly unravel the industry.
"Aircraft induction on this scale will require massive infrastructure development, skilled resources ... at a pace that has not been seen before in India," the report said. "Parking bays and runway slots will become increasingly scarce over the next few years."

Riaz Haq said…
Aviation Industry
The aviation industry is characterized by high competition
arising from soft barriers to entry, cyclicality, and
vulnerability to economic shocks...

Based on economic and
demographic growth,
IATA has projected
intra Pakistan air
traffic to grow at 9.9%
over the next 20 years,
more than twice the
4.1% projected annual
world growth rate. This
supports the prospects
of growing revenues for

Local Industry Structure
• There are three domestic players in Pakistan: Pakistan International Airlines
(PIA), Shaheen Air International Limited (SAI) and Air Blue Limited.
• Indus Air, which commenced flights in 2013, was forced to cease operations
in 2015 by the Civil Aviation Authority (CAA) on account of failure to meet
legal minimum requirement of fleet size of 3 airworthy aircrafts.

Total passenger traffic has grown at a CAGR of 5.3% over the last 5 years and has reached 15.1m
passengers during FY15.
• Based on economic and demographic growth, IATA has projected intra Pakistan air traffic to grow
at 9.9% over the next 20 years, more than twice the 4.1% projected annual world growth rate.
This supports the prospects of growing revenues for airliners.

Market Share (Domestic Passenger Traffic)
• Domestic passenger traffic has remained relatively stagnant over
the last five years. During FY15, total number of domestic air
passengers amounted to 3.15m vis-a-vis 3.59m during FY14. The
reduction was mainly due increase in number of domestic airports
/ destinations, facilitating direct travel.
• PIA’s market share in terms of domestic passenger traffic was 51%
for FY15. However, the same has decreased from 72% during FY10
on account of mismanagement and inefficiencies. Market share
of PIA is expected to decline further in FY16 due to a two week
airline strike, which allowed other players to gain market share.
• Shaheen Air is the second largest player having 27% (FY10: 14%) market share in terms of
domestic passenger traffic followed by Air Blue at 13% (FY10: 14%).
Market Share (International Passenger Traffic)
• Total international air travel for Pakistan has grown at a CAGR
7.1% over the last five years. Total international passenger traffic
amounted to 11.9m passengers (FY14: 10.9m, FY10: 8.5m) during
• Market share of foreign carriers during FY15 has increased to 56%
(FY14: 53%) of total international air travel in/out of Pakistan.
Based on the above mentioned reasons, along with competitive
pricing from Emirates Airlines, PIA’s market share decreased from
43% in FY10 to 23% in FY15.
Riaz Haq said…
CPEC investments lift Pakistan’s hospitality industry

Infrastructure investments for the China-Pakistan Economic Corridor (CPEC) have given a helping hand to Pakistan’s hospitality industry as new hotels and guest houses are emerging in different parts of the country, said Jovago Asia Chief Executive Officer Nadine Malik.

“Pakistan’s middle class is growing and with higher disposable incomes, people are shelling out more money for leisure activities,” she said in an interview with The Express Tribune. “This is expected to further grow in coming months.”

Pakistan has achieved 5.3% gross domestic product (GDP) growth – the highest in a decade – in the outgoing fiscal year 2016-17. Gradual improvement in macroeconomic indicators and security situation since 2013 has helped all important sectors in the country.

“Chinese are coming to Pakistan in big numbers, which is also an opportunity for us,” she said, adding though most of them are coming to work on mega projects where they have company accommodations, there is still potential for the hospitality industry as new guest houses are being constructed in the country.

While refusing to share the exact data of annual hotel bookings, Malik said the total number of visitors on the hotel booking portal has crossed 3 million since the website’s launch in 2014.

Jovago caters to domestic tourists while only 2% of its customers are foreigners. Its top season is June and July mainly due to summer vacations. In its first year of operations, most of its clients travelled to Naran and Kaghan in Khyber-Pakhtunkhwa, but later people also took interest in Muzaffarabad, Azad Kashmir, Hunza, Skardu and Gilgit-Baltistan. She said places like Naran, Kaghan, Hunza, Skardu and Muzaffarabad are open only for four to five months from April to August, so a lot of Jovago’s traffic is also concentrated in these months.

The second busy season is December during which families travel mostly from one big city (like Karachi, Lahore and Islamabad) to another due to winter vacations. A lot of travellers from mid-tier cities (like Faisalabad) also go to Islamabad and Lahore.

Most of the portal’s clients make business trips to Karachi, typically for just a few hours. However, due to improving security conditions in the city, a lot of them are now bringing their families with them to stay for a few days.

For instance, Malik said Arabian Country Club – a sprawling place with sports facilities such as golf and others about 45 kilometres east of Karachi – is usually booked out all the time.

“Our hotel partners in Karachi say that their occupancy rate, which was not more than 50% in 2014 on a good day, is now in the range of 70-80% mainly due to improving security situation in the financial capital of Pakistan.”

According to the Jovago CEO, the concept of long weekends is gaining momentum in Pakistan. For instance, a considerable number of people travelled around March 23 – a national holiday – that has been falling around weekends for the last two years.


Malik said a lot of people still hesitate to travel inside the country due to perceived security threats. Apart from this, she added, there is a lot of room for improvement in terms of roads and other infrastructure facilities that could increase domestic tourism.

She felt that Pakistan needs more four and five-star hotels because the country has many two and three-star hotels but it lacks big ones.

According to Jovago Pakistan estimates, Pakistan’s annual travel, tourism and business travel spending exceeds over $12 billion. Leisure travel spending is expected to grow from $10.3 billion in 2016 to $17.6 billion in 2026 while business travel spending is expected to jump from $1.9 billion in 2016 to $3.3 billion in 2026.
Riaz Haq said…
New Aviation Solutions Organization Launched In Pakistan

Integrated Aviation Solutions (IAS) Pakistan was launched in Pakistan Yesterday, IAS will be working as a strategic partner of IGR International Aircraft Sales LLC, the partnership will focus on the regions Asia, Middle East and Africa.

Lahore Airport Will Be The Largest In Pakistan After Chinese Company Reconstruct it

IAS will help in regulating aviation industry in Pakistan, IAS would also polish the talented individuals and professionals for the aviation industry. Pakistan has a large number of talented youth ready to serve as best professionals in the industry meeting the higher international standards, said CEO Syed Hamid Ali, while addressing the ceremony in a hotel in Islamabad.

“On its own initiative IAS has established a unique professional institution in Pakistan, responsible for providing technical and vocational training and education in aviation”, With all these efforts Pakistani aviation professionals would be able to play an important role in the International aviation industry, said Ali. According to him, IAS would also serve as a consultant to Kamra Aeronautical Complex (KMC) for capitalizing and expanding their commercial aspects, he added.

Ali also briefed about future plans of IAS, he said, “IAS has already planned to start its operations at the New Islamabad International Airport, the role of IAS would be to help regulate airlines in training and maintenance of their entire operations.

Hoping for the favorable outcomes of gigantic CPEC project, he also expressed his views about the promotion and growth of aviation industry due to the project. He said Pakistan should be prepared for the commercial opportunities associated with the CPEC project in the aviation industry.
Riaz Haq said…

In a one-day symposium – titled “CPEC vis-à-vis Opportunities for Aviation Industry and Way Forward” – the Government of Pakistan, the Pakistan Air Force (PAF), the Pakistan Civil Aviation Authority (PCAA) and members of the private sector collectively expressed hope that the China Pakistan Economic Corridor (CPEC) would spur growth in Pakistan’s aviation sector.

The Daily Times (Pakistan) compiled a report outlining the thoughts and aspirations of each symposium participant, which included the Federal Interior Minister Dr. Ahsan Iqbal, the PAF Chief of Air Staff (CAS) Air Chief Marshal (ACM) Sohail Aman and other leading officials and industry representatives.

Short-term objectives center on guaranteeing the security of CPEC projects. In this respect, the PAF had outlined its success in building a capable intelligence, surveillance and reconnaissance (ISR) element for providing situational awareness for all relevant parties, including its sister services the Pakistan Army and the Pakistan Navy. The PAF had also expressed confidence in its ability to counter asymmetrical threats through precision-guided airstrikes. It is also committed to providing search-and-rescue support.

The panel’s long-term aspirations echoed earlier government sentiments, namely of channeling projected economic growth from CPEC to effect industry gains. In this case, it is aviation.

PCAA Additional Director of Air Transport International Regulation Syed Muzaffar Alam projected that air travel in Pakistan will see an additional three million passengers in the next three to four years. Alam believed that this growth will present opportunities for growth in Pakistan’s commercial airline sector, be it new airlines or expanded ground support providers. In relation, PAF Air Vice Marshal Razi Nawab, the Deputy Managing Director of the Shaheen Foundation, stressed that investment be made in raising new maintenance, repair and overhaul (MRO) entities and airlines in Pakistan to support growth in air travel.

Interior Minister Dr. Ahsan Iqbal called for developing Pakistan’s aviation development and manufacturing sectors, particularly through “Technology Intensive Clusters” at Pakistan Aeronautical Complex (PAC) in Kamra. He also advocated for research and development, joint-ventures and public-private partnerships.

The participating stakeholders proposed raising a joint working group comprising of representatives from the Government of Pakistan, the PAF, PCAA, the private sector and academic institutions to steward the objectives discussed at the symposium.
Riaz Haq said…
How many flights per day in Pakistan?

Tom Quetchenbach, occasional flyer
Answered Jun 4
To get a very rough idea, we can look at some data from the Pakistan Civil Aviation Authority for 2015–2016. According to this data set, there were 157,214 aircraft movements (takeoffs or landings) at Pakistan’s larger airports in 2015–2016, of which 71,227 were domestic and 85,987 were international. That’s an average of about 431 aircraft movements per day. Assuming that this is double-counting at least most the domestic flights, because what goes up must come down (that is, each domestic flight consists of two aircraft movements in Pakistan—a takeoff and a landing), dividing the domestic aircraft movements by 2 gives 98 domestic and 236 international flights per day on average.

But that is certainly an underestimate, because it doesn’t account for flights to, from, or between smaller airports, military flights, etc. It’s also not clear to me whether this includes flights by smaller, unscheduled carriers and aircraft operators other than passenger or cargo airlines.
Riaz Haq said…
#Tourism thrives in #Pakistan as number of foreign tourists triples and domestic tourism up 30% since 2013. #travel

As security improves, annual tourist arrivals to Pakistan has more than tripled since 2013 to 1.75 million last year, while domestic travelers rose 30 percent to 38.3 million, according to the state-owned Pakistan Tourism Development Corp. Over the same period, foreign tourist arrivals in the country’s larger neighbor, India, jumped from 6.97 million in 2013 to 8.8 million in 2016, government figures show.

The World Travel and Tourism Council puts the total contribution of tourism to Pakistan’s economy at $19.4 billion last year or 6.9 percent of gross domestic product. In a decade, the WTTC expects that to rise to $36.1 billion.

Still, security challenges remain. While casualties from attacks fell 43 percent last year, major cities, such as Lahore, are occasionally hit by bombings.

Jonny Bealby, the managing director of Wild Frontiers Adventure Travel Ltd., a London-based operator that has run trips to Pakistan for two decades, said his tours to the South Asian nation are up 60 percent from last year.

Along with security, Bealby said the main improvement in Pakistan has been infrastructure. “The roads have improved immeasurably reducing journey times.’’


Annual tourist arrivals have more than tripled since 2013

Military campaign has boosted safety, infrastructure improved

After a bone-jarring mountain journey, Alan Cameron surveys the snow-capped peaks of Pakistan’s north near the Saiful Maluk lake. “It’s beautiful -- well worth the effort,” said the 34-year-old Canadian holidaying in a country better known for terrorism than tourism.

Taking a break from his job as an analyst at Jefferies in London, Cameron’s vacation last month underscores the rekindling of Pakistan’s tourism industry after a sustained military security crack-down, with annual arrivals more than tripling since 2013.

Keen to shed the image that it’s unsafe for visitors, Pakistan has begun a nascent tourism drive and this summer placed adverts across the sides of London’s iconic red buses. Road infrastructure has also been boosted across key holiday regions.

Since the 2014 massacre of more than 100 children at a military school, the army has neutered some insurgent groups and political militias. Tourists are now returning to areas such as the Swat Valley, a northern region known as the Switzerland of Pakistan that was controlled by the Taliban between 2007 and 2009 and where Nobel prize winner Malala Yousafzai was shot in 2012.

Riaz Haq said…
#Lahore based #Pakistani #American founder of #AI #unicorn Afiniti takes investors helicopter skiing in #Pakistan.

AI firm Afiniti employs three-quarter of employees in Pakistan
Company may list next year with more than $2 billion valuation
In the northern snow-capped peaks of Pakistan, Zia Chishti disembarked off a helicopter and skied downhill on a mission to convince investors, clients and company executives that the nation once called by The Economist “the world’s most dangerous place” is now safe for business.

Chishti, who grew up in Lahore, gathered a group from more than a dozen countries including Alessandro Benetton, a heir to the billionaire family that owns the iconic namesake Italian clothing company, and Huawei Technologies Co. rotating Chief Executive Officer Guo Ping earlier this year to Pakistan, the back-end base for some of his businesses. Last month, his artificial intelligence company signed a deal with Huawei, which will help its push into Eastern markets including China, Japan and Australia.

For Chishti, ensuring his clients understand that Pakistan, which has struggled against internal militant groups, has changed since The Economist report a decade ago is critical because many of his employees who provide customer solutions, sales support and marketing to clients including Sprint Corp. and Caesars Entertainment Corp. are based in the South Asian nation. Chishti has added more people in Pakistan, a move that will also help him keep costs under control as his AI unit prepares for an initial public offering in the U.S.

“Pakistan by any reasonable and adaptive measure is an extremely safe place to do business,” said Chishti, whose office oversees the White House, said in an interview by phone. “All in all it’s a very favorable place to do business and the world perception just has to catch up.”

Despite a widespread negative perception over the country’s security record, multiple military operations have curbed domestic insurgents after a Pakistani Taliban massacre at a school three years ago shocked the nation. Last year, civilian deaths from terrorism dropped to the lowest in more than a decade.

The army’s drive has boosted the confidence of companies, including TRG, and foreign investment is up 155 percent to $457 million in the first two months of the business year started July. Chishti’s company has moved into a larger building this year that will fit 3,000 staff in the previously tumultuous port city of Karachi, which has been secured by paramilitary forces against gangsters, militants and political militias since 2013.
Riaz Haq said…
Air #China increases flights for #Pakistan to 7 per week - Samaa TV #CPEC

Air China, China’s national flag carrier, has decided to increase flights on the Beijing-Islamabad-Karachi route from four to seven a week starting October 29.

Air China had launched the route between China and Pakistan in October 2016, starting with three flights per week. More than 120,000 trips on the route were recorded till September this year.

Hu Haitao, manager of Air China’s Islamabad office, said in a promotional event that the increased flights will “better serve the exchanges between China and Pakistan in trade and culture.”

Meanwhile, Zhao Lijian, ministerial counsellor of the Chinese Embassy in Islamabad, said that the development of the China-Pakistan Economic Corridor (CPEC) has boosted the two countries’ ties in politics, economy and science, providing a good opportunity for Air China to extend its business in Pakistan. – APP

Riaz Haq said…
Avari group launches hotel in Multan

China would not let anyone dismember Pakistan or harm its territory because it was investing $ 46 billion in it for its survival, a leading businessman said on Tuesday.
“China-Pakistan Economic Corridor (CPEC) would be a game changer for Pakistan which would bring prosperity, development and employment for thousands of people,” Byram Dinshawji Avari, chairman Avari Group of Companies told a press conference after the inauguration of Avari Xpress Boutique in Multan.
“I prefer to invest Pakistan and that’s why I am launching hotels of world-class in Multan, Sargodha, Faisalabad, Islamabad, and other cities. All Pakistanis should invest in Pakistan and they should not look to other countries.”
Avari said he did not agree with those economists who were expressing their reservations on Chinese investment. “China would neither prove to be an East India Company nor capture our country,” he said.
He added that Gwadar port would help boost international trade with China and central Asian states. “When a motorway can help boost country's economy, business, and
prosperity, then why China-Pakistan Economic Corridor, a major project of Rs4600 billion will not prove to be a game-changer,” Avari asserted.
He said that investors should come forward to raise the graph of Pakistan in economy. Speaking on the occasion, the former Punajb minister Jalaluddin Roomi hoped that trade and economic activities would increase with the establishment of hotels of international repute in Multan. “A special economic zone should be developed in Multan under the China-Pakistan Economic Corridor project,” Roomi demanded.
Riaz Haq said…

World Travel and Tourism Council WTTC

The direct contribution of Travel & Tourism to GDP was PKR793.0bn (USD7.6bn), 2.7% of total
The total contribution of Travel & Tourism to GDP was PKR2,033.5bn (USD19.4bn), 6.9% of GDP in 2016, and is
forecast to rise by 6.0% in 2017, and to rise by 5.8% pa to PKR3,793.0bn (USD36.1bn), 7.2% of GDP in 2027.
In 2016 Travel & Tourism directly supported 1,337,500 jobs (2.3% of total employment). This is expected to rise
by 2.3% in 2017 and rise by 2.5% pa to 1,757,000 jobs (2.3% of total employment) in 2027.
In 2016, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by
Visitor exports generated PKR93.8bn (USD893.8mn), 3.6% of total exports in 2016. This is
Travel & Tourism investment in 2016 was PKR375.2bn, 9.3% of total investment (USD3.6bn). It should rise by
8.1% in 2017, and rise by 8.0% pa over the next ten years to PKR872.0bn (USD8.3bn) in 2027, 11.4% of total.
Riaz Haq said…
Aviation Industry in Pakistan shows great potential for growth
Updated about Dec 17, 2017

The Aviation Industry in Pakistan has shown great potential for growth and aviation traffic has been increased over 10 percent in last few years inside the country but Pakistan International Airlines (PIA) has been facing financial losses due to bad mismanagement and lack of proper interest by the government.

According to aviation sources, even International Air Transport Association (IATA) which represents major industry airlines across the globe has also recognized the progress in this field and observed that Pakistan is amongst high growth aviation markets.

In the recent years, many airlines have increased in the frequency of operations of their airlines in Pakistan. The airlines from Bahrain, Malaysia, Oman, Qatar, Saudi Arabia, Thailand, Turkey, UAE and some other countries are operating to Pakistan and getting enough business.

This increasing trend of foreign airlines has been adding economic growth in Pakistan and also creating job opportunities in the country. The government while considering the growth potential in the aviation industry has taken a number of steps to cater more business from international airlines.

Besides takings measures for creating balance in Pakistani and foreign airlines, the government has liberalized the policy of aviation through initiating confidence building measures for foreign carriers with appropriate expansion and up-gradation of the aviation infrastructure.

A spokesman for aviation department said the government has taken measures to improve the security system for domestic and international airports, radar systems have been improved and measures are under way for further improvement of radar and guidance system for all flights especially in foggy conditions at the airports.

For this purpose instant landing system at Allama Iqbal International Airport Lahore has been upgraded to ensure continuity of flight operatio even in case of bad weather. New International Airport of Islamabad, equipped with most modern and latest facilities, will be operational at the start of next year.

A number of development projects are underway at Peshawar, Gwadar and Quetta for the improvement of the airports in these areas.

On the other and PIA, the national carrier, is facing huge financial losses due to bad management and bureaucratic attitude of the staff and lack of interest being taken by the government.

The business and revenue of the PIA is decreasing but the airline owned by Prime Minister Shahid Khaqan Abbasi is making profit. Many routes of PIA are being closed but private airlines are opening new routes and making profit.

The financial loss of PIA in early 2017 was Rs. 45 billion which was 30 percent more as compared to last year losses. Although the PIA has 36 aircrafts and it has been acquiring more aircrafts on dry lease. As the PIA is national carrier, therefore, the government is taking care of its losses and injecting financial assistance from time to time to continue the operation of this airline.
Riaz Haq said…
#Pakistan aims to sell national #airline #PIA before election.

Pakistan International Airlines (PIAa.KA)(PIA), hemorrhaging money and losing market share to Gulf-based rivals such as Etihad and Emirates, has been hit by management turmoil in recent years and a 2016 plane crash that led to 47 deaths.

The privatization of loss-making entities that were draining the exchequer was a key priority for the Pakistan Muslim League-Nawaz (PML-N) party when it swept to power in 2013.

PIA was among 68 state-owned companies earmaked for privatization in return for a $6.7 billion International Monetary Fund package that helped Pakistan to stave off a default in 2013.

Despite some initial success, the process stalled in 2016 after staff protests caused havoc with PIA operations and the government passed a law that effectively made it impossible to privatize the airline.

But Aziz, chairman of the Privatisation Commission, told Reuters that new plans have been drawn up to sell off PIA and he would take the proposals to the cabinet committee on privatization, chaired by Prime Minister Shahid Khaqan Abbasi.

“Next step would be going to the cabinet committee ... and that’s imminent, maybe even next week,” Aziz said in his Islamabad office this week.

The new plans focus on splitting up the carrier, with the core airline business being separated from vast peripheral operations such as catering, hotels and maintenance, Aziz said. The core airline would then be sold.

But to complete the transaction, Aziz said, the government would have to pass laws in parliament to reverse the 2016 legislation that converted PIA into a limited company and effectively barred the government from giving up management control.

The impetus to sell PIA has grown as the airline has piled up huge losses estimated by its former CEO in March at about $30 million a month. Total debt stood at 186 billion rupees ($1.8 billion) at the end of 2016.

When asked how soon could a buyer could acquire PIA, Aziz said: “Tomorrow morning. If you have the money, come and buy it.”

Both Emirates and Etihad had shown interest in buying PIA before the government backed down from privatization in 2016, the English-language Express Tribune newspaper reported, citing an unnamed official.

Analysts have been skeptical about the government’s ability, or willingness, to take on powerful unions and embark on a privatization process so close to general elections likely in July or August.

Aziz said that, owing to time restraints ahead of the elections, the privatization commission will focus on one state company per sector, including a bank and an energy company.

He added that there has been “huge interest” in buying Pakistan Steel Mills, once the pride of Pakistan’s industrial output but now shut and bleeding cash.

“We will get runs on the board, but the real challenge is to bring to fruition the two big animals: one is PIA and the other one is Steel Mills,” Aziz said.
Riaz Haq said…
#Pakistan to have 5 new domestic/international #airlines soon to meet nation's #airtravel boom: Askari Air, Air Siyal, Go Green, Liberty Air and Afeef Zara Airways.

“Air traffic of the country has swelled 40% over the past five years to 20 million passengers,” Standard Chartered Pakistan Chief Executive Officer Shahzad Dada said at the recent launch of the Emirates Standard Chartered Credit Card.

The current rate of growth in Pakistan’s aviation industry is expected to be around 9% per annum which could continue till 2020, according to a forecast of the International Air Transport Association (IATA) – a trade body of world’s airlines.

“These numbers tell us the open skies policy has proved favourable for the country and its people,” remarked Muhammad Afsar Malik, former additional director of the Civil Aviation Authority (CAA), who was believed to have played a key role in framing the National Aviation Policy 2015.

Most of the upcoming carriers will target low-profit, far-off destinations like Gwadar, Turbat, Panjgur, Khuzdar, Dalbandin, Zhob, Rawalakot, Skardu, Chitral, Gilgit, Bannu, Parachinar and Muzaffarabad.

Of these, Gwadar, Gilgit-Baltistan and Turbat could generate immediate profits because of their tourism potential and work on China-Pakistan Economic Corridor (CPEC) projects.

For these remote regions, the new carriers will bring airplanes suitable for small airports.

National flag carrier PIA has thus far taken advantage of these routes as it is the only player catering to air travel needs of these areas. PIA, which once helped Emirates airline of the UAE by giving two aircraft with crew, is now beset with financial trouble with losses going beyond Rs300 billion.

According to Malik, Pakistan’s domestic air traffic has grown 10%, which is six percentage points higher than the 4% expansion in international air traffic.

Although Pakistan’s market size is increasing, the share of domestic airlines is contracting. They carried 42% of the passengers in financial year 2016-17 as opposed to the 58% flown by international airlines.

“Airlines are in the race to attract customers through fare reduction; had the market not been free, the air ticket you got for Rs10,000 would have cost around Rs30,000,” said Malik. “Competition is good for public service.”

However, PIA does not seem to be buying the idea.

“Private airlines, especially foreign carriers, have mainly resorted to price cuts, instead of going more towards customer satisfaction in terms of comfort and improved services,” commented PIA spokesperson in an email response to a query.

Separately, a Shaheen Air spokesman said in an email “about every player in the aviation chain including airports, airplane manufacturers, jet engine makers, travel agents and service companies turn in healthy profits. Yet, it is one of the enduring ironies that companies that actually move passengers from one place to another, which are a crucial link in the chain, struggle to achieve break even.”

He suggested that the government should revisit its open skies policy as foreign carriers could enter Pakistan’s market without any restriction. “Authorities should devise a new concept called a fair skies policy whereby local carriers along with foreign ones have a fair share in the market,” he said.

The industry did not oppose market liberalisation, but it should be designed in such a way that industry players were not hurt as they were already operating at a low profit margin of less than 3%, he said. “The industry, including PIA, is producing a combined net loss annually.”

UAE’s Emirates and Etihad Airways as well as Qatar Airways among other Gulf carriers are giving a tough time to Pakistan’s domestic airlines, which believe it is hard to compete with these foreign carriers since they are state-funded or operated.

Riaz Haq said…
5 airlines to venture into Pakistan
Source: Xinhua| 2018-01-29 20:13:38|Editor: Lifang

ISLAMABAD, Jan. 29 (Xinhua) -- Five national and international airlines have applied for regular public transport airline license of Pakistan Civil Aviation Authority (CAA) to venture into the country's aviation industry, local reports said Monday.

The airlines are expected to get permission to carry out the flight operation in the country's skies during the next one year, which is likely to bring down passenger fares, local newspaper Express Tribune said.

Airlines including Askari Air, Air Siyal, Go Green, Liberty Air and Afeef Zara Airways have applied for the license to be a part of the aviation industry which is expected to be around 9 percent per annum and likely to keep the same pace till 2020, according to a forecast of the International Air Transport Association, a trade body of world's airlines.

Pakistan's air traffic has soared up to 40 percent over the past five years to 20 million passengers, and is continuously witnessing an upward trend due to improvement of law and order situation in the country, which is bringing in more tourists in the country.

The China-Pakistan Economic Corridor (CPEC) has also resulted in the increase of air traffic in the country.

Most of the upcoming carriers will target low-profit, far-off destinations including Gwadar, Turbat, Panjgur, Khuzdar, Dalbandin, Zhob, in Balochistan province where CPEC projects are in full swing, and the tourist destinations of Rawalakot, Skardu, Chitral, Gilgit, Bannu and Parachinar.

The destinations could generate immediate profits because of their tourism potential and work on CPEC projects.

For these remote regions, the new carriers will bring airplanes suitable for small airports.

The entry of new airlines in the country's airspace is expected to further increase challenges of the country's national flag carrier Pakistan International Airlines, which was the sole operator in most of these routes in the past.
Riaz Haq said…
#Saudi carrier Flynas to launch 14 flights a week to #Pakistan from Thursday to #Lahore and #Islamabad to serve 2.5 million strong #Pakistani diaspora

Flynas is to launch 14 direct flights from the Kingdom’s airports to major cities in Pakistan, beginning on Thursday.
Announcing its expansion program, the airline said the launch is part of its ongoing program to extend its reach to Asia and open new strategic international routes.
Flynas will launch flights from Dammam, Riyadh, and Jeddah to both Lahore and Islamabad and will commence on Thursdaywith flights from Riyadh to Lahore. Riyadh-to-Islamabad flights will follow on Friday, along with flights from Dammam to Lahore, while flights from Jeddah to Lahore will be launched on Saturday.
These flights will utilize the A320 fleet and new B767 aircraft. Bookings can be made through flynas’ smartphone application, travel agents, and the flynas website.
The new routes will serve business travelers as well as ferry Hajj and Umrah visitors. They will also connect passengers to many cities within the Kingdom with flynas’ network, which includes 17 domestic destinations.
Speaking to Arab News, Pakistan Ambassador Khan Hasham bin Siddique said: “It is a matter of great satisfaction to see flynas resuming its operations in Pakistan. Air links are vital not only for facilitating travel between the two countries but also for enhancing overall relations by further strengthening people-to-people contacts, business interactions, bilateral trade, and tourism.
“The resumption of operations in Pakistan, while ensuring the continuity of the momentum gathered recently by several high-level bilateral visits and interactions, will especially provide impetus to our trade and commercial relations,” the envoy said.
It will be particularly welcome for the 2.7-million-strong Pakistani community residing in Saudi Arabia, the ambassador stressed.
Riaz Haq said…
Pakistan PM opens long-delayed new airport in capital Islamabad

Pakistani Prime Minister (PM) Shahid Khaqan Abbasi on Tuesday inaugurated the long-delayed new airport in the capital, Islamabad, replacing the cramped Benazir Bhutto airport often criticized by travellers.

A Pakistan International Airlines pilot waved a green and white Pakistani flag out of his cockpit window after landing the carrier’s first commercial flight at the New International Islamabad Airport.

With a sleek glass-front entrance, spacious check-in areas and jetway bridges for boarding, the Y-shaped airport promises an end to the congestion that has frustrated air travel in the past.

“This airport rightly reflects what has happened in Pakistan in the last five years,” said Abbasi.

Abbasi’s ruling Pakistan Muslim League-Nawaz (PML-N) party had been eager to open the new airport before national polls, likely in July, as it touts big-ticket infrastructure as sign of economic progress in the South Asian nation of 208 million people.

Abbasi’s government is spending billions of dollars on upgrading Pakistan’s transport infrastructure and ending energy blackouts, with freshly paved motorways as well as dams and power plants popping up across the country.

Abbasi, who has a pilot’s license and is a founder of a Pakistani budget airline, said new airports in the cities of Multan, Faisalabad, Quetta and Peshawar were in the final stages.

The new Islamabad airport, which has the capacity to handle 15 million passengers annually and space for further expansion, was first suggested in the 1980s and has been more than a decade in the making.

The delays have become a running joke with many Pakistanis, who mock the frequent announcements that the new airport would open soon and subsequent clarifications of further delays. The airport’s most recent delay was last month.

“Nothing is impossible but this project definitely seemed impossible,” quipped Abbasi, in reference to his government inheriting the project in 2013.

The new airport is about 15 km (nine miles) from the capital. Benazir Bhutto airport was in the nearby city of Rawalpindi and attached to a military base.

International travellers often complained about chaotic scenes at the airport and in 2014 it was voted the worst in the world by the “Guide to Sleeping in Airports” website, prompting widespread criticism of the airport in Pakistani media.

The new airport started full operation on Thursday.
Riaz Haq said…
#Emirates’ special one-off #A380 flight landed in #Islamabad #Pakistan on Sunday with celebrities, officials, diplomats and journalists on board. #Airline intends to make the #superjumbo a regular daily flight in future to #NewIslamabadAirport

Emirates’ special one-off A380 flight landed in Islamabad on Sunday with celebrities, officials, diplomats and journalists on board.
Arrival of the airline’s iconic double-decker special flight EK2524/EK2525 to Islamabad also made history in Pakistan’s aviation as it was the first A380 to have ever landed in Pakistan.

Two Emirates alumni pilots including Captain Ejazul Haq and Captain Fazle Ghani, who operated the first ever Emirates flight from Dubai to Karachi on October 25, 1985 were also among the guests on board. Captain Haq had operated the second Emirates flight from Dubai to Mumbai on the same day.

Though it was a one-off A380 flight between Dubai and Islamabad, the airline wants to make it a regular daily flight in future.
“This is our special flight but we want to operate regular daily flight on an A380 from Dubai to the new Islamabad airport which is fully equipped to receive the big aircraft,” said Shaikh Majid Al Mualla, Divisional Senior Vice President Commercial Operations Centre, Emirates. The new Islamabad International airport opened in May.

Speaking to Gulf News on board the A380, Al Mualla said that negotiations with the authorities concerned in Pakistan have already started in this regard. We are very hopeful that passengers on this route would soon enjoy regular A380 flights.
“We came here to showcase our innovative products and will continue to work with authorities to realise our plans to increase capacity to all routes to Pakistan,” he added.
Building relations
The special A380 flight departed Dubai at 8.15am and arrived at the new Islamabad airport at 12.20pm. The flight departed Islamabad at 15:40 hours arriving in Dubai at 17:45 hours on the same day.
Hamad Al Za’abi, the UAE’s Ambassador to Pakistan who was also on board, told Gulf News: “It is a historic day for UAE and Pakistan. We operated the first flight to Pakistan and now brought the first A380 — the world’s largest aircraft — to Pakistan. It reflects that we are building on our relations. We want to make it a daily flight and we are working on it.”
Moazzam Ahmad Khan, Pakistan’s Ambassador to the UAE, who was among the special guests on-board, said: “It is a new chapter in the Pakistan-UAE relations. Landing of the superjumbo in Pakistan would send a positive message to the business community and investors around the world that Pakistan is a growing market.”
He said that the government of Pakistan is in discussions with the UAE authorities to finalise agreement to allow Emirates to operate the A380 to Pakistan. “It is a win-win situation for both the countries. Emirates is very important to us as thousands of Pakistanis not only from UAE but from around the world use it to travel to and from Pakistan.”
Riaz Haq said…
#BritishAirways to resume flights to #Pakistan after "great improvements" in #security - BBC News

British Airways will resume flights to Pakistan next year after a 10-year absence that followed a major hotel bombing, becoming the first Western airline to restart flights to the South Asian nation.

BA halted flights following one of the most high-profile attacks in Pakistan’s history, the 2008 Marriott Hotel bombing in the capital, Islamabad, which took place during a period of devastating Islamist militant violence that swept the country.

But security has since improved, with militant attacks sharply down in the mainly Muslim country of 208 million people. In Islamabad, a web of road checkpoints dotted across the city for more than a decade has mostly been dismantled.

Richard Crowder, the Deputy British High Commissioner to Pakistan, told reporters in Islamabad BA’s return was in large part due to “an improvement in the security environment in this country”.

Pakistani officials hailed BA’s move, saying it will offer confidence to other foreign investors and make the country less isolated.

“Once it gets around the world that British Airways has put its stamp of approval on Pakistan, it will put us one or two notches up as a country to do business with,” said Commerce Minister Abdul Razak Dawood.

BA, which is owned by Spanish-registered IAG, is due to begin the London Heathrow-Islamabad service on June 2, with three weekly flights by the airline’s newest long-haul aircraft, the Boeing 787 Dreamliner.

At present, only loss-making national carrier Pakistan International Airlines (PIA) flies directly from Pakistan to Britain, but its aging fleet of planes is a frequent source of complaints by passengers.

Middle Eastern carriers Qatar Airways, Etihad Airways and Emirates [EMIRA.UL] have a strong presence in Pakistan and have been eating into PIA’s dwindling market share. Turkish Airlines also lays on a regular service to Pakistan.

Islamabad has been running international advertising campaigns to rejuvenate its tourism sector that was wiped out by Islamist violence that destabilized the country following the 9/11 attacks in the United States in 2001 and the U.S.-led war in Afghanistan.

Pakistan was formed at partition at the end of British rule in India in 1947 and more than a million people of Pakistani origin live in Britain.

Robert Williams, Head of Sales for Asia Pacific and the Middle East for British Airways, said the carrier believes the route “will be particularly popular with the British Pakistani community who want to visit, or be visited by, their relatives”.

Zulfikar Abbas Bukhari, a special assistant to Prime Minister Imran Khan, said “British Airways coming back after a decade shows you where we were and how far we have come”.
Riaz Haq said…
#Pakistan’s #Gwadar International #Airport will be the largest in the country. Spread over an area of 4,300 acres, it will be able to land Airbus #A380, the biggest wide-body passenger #aircraft. #Balochistan #China #CPEC

The construction of the airport will be completed within three years at the cost of US$256million.

Unlike other projects under the China-Pakistan Economic Corridor (CPEC) are operating under concessional loans, the Airport is planned under a Chinese grant.

The airport will also be the biggest in Pakistan at an area of 4,300 acres.

It will be the biggest airport of Pakistan. In comparison to other airports like Karachi Airport (3,700 acres), Islamabad International Airport (3,600 acres), Lahore Airport (2,800 acres), the Gwadar Airport will be built on 4,300 acres.


The airport is one of several development projects in Gwadar worth $690 million which the Chinese government is financing as part of its Belt and Road Initiative.

The project is part of overall infrastructure development of Balochistan. It would be developed as a green-field facility with all modern facilities for safe operation.

The project would comprise a modern terminal building with cargo terminal having initial handling capacity of 30,000 tons per year.

On this occasion, a memorandum of understanding (MoU) was signed for construction of Pakistan and China Vocational Training Institute and Pak-China Friendship Hospital.

Prime Minister Imran thanked the Chinese Ambassador for the grant given by the Chinese government for the airport.

Benefits to local people
He categorically said any development would be of no use unless it benefited the local people.

He said in the past, the locals were ignored while executing the development projects in Balochistan. He said gas worth billions of rupees was extracted from Sui but it could not change the living standard of the local people.

He said it was pleasing that the capacity of the hospital in Gwadar would be enhanced and a vocational training institute would also help create employment opportunities.

Prime Minister Imran announced to launch Insaf Sehat Card (health card) to provide health insurance cover worth Rs720,000 to every family.

He said previously power was being transmitted from Iran, but now the government had decided to link the area with national grid.

Desalination plant
A desalination plant would also be set up in the city and under Clean and Green Pakistan, one million saplings would be planted. Besides, a solid waste management system would also be established to protect the area from pollution.

He said following the models of Dubai, Abu Dhabi and Sharjah, the government had decided to recycle water in Gwadar to water the plants.

He told the gathering that Gwadar and Quetta would be linked through railways as it was the best travel mode but unfortunately Pakistan had been lagging behind in this sector.

Rail links
He said Chinese support was being sought to upgrade railway lines as China had the most advanced rail system. A high-speed rail link would cut travel time bewteen Karachi and Lahore to within four hours, instead of 18 hours by car, or 21 hours by bus at the moment.

Khan said having located at an ideal location and being well connected, Gwadar’s development would be the development of whole of Pakistan.

During the development process of the new airport, the existing airport’s capacity would also be enhanced by making it capable of transporting big aircrafts.

With the establishment of new international airport, the Gwadar city would become hub of aviation industry and it would also help elevating the CPEC framework.
Riaz Haq said…
With a population of 216 million, Pakistan is the world’s fifth-largest country, sandwiched in size between Indonesia and Brazil. It is also large geographically, with an area bigger than Turkey.

Since 2014, Pakistan’s GDP growth has averaged 4.7%, dragged down by less than 2% last year. The country’s average was the second-lowest in South Asia, with only Sri Lanka achieving lower growth. Bangladesh (7.2%) and India (7.0%) performed strongly.

In 2019, total seats to, from, and within Pakistan amounted to 24.1 million, up by 53% – or 7.4 million – over 2010, data from OAG indicates.

Despite 7.4 million seats added since 2010, Pakistan’s capacity was down nearly 8% YOY in 2019, with a loss of two million seats.

This decline was the result of a myriad of things, including the country’s struggling economic performance, PIA’s ongoing major problems, and the end of Shaheen Air in late 2018.

Shaheen Air was Pakistan’s third-largest operator in 2018, down from number-two in 2017, mainly as it ceased operating before the end of the year.

The rise of SereneAir, which launched in 2017, has not been sufficient, with this carrier operating nine domestic routes with a fleet of just four B737-800s.

Last year was in many ways extraordinary, so perhaps not too much attention should be paid to it.

Pakistan’s international market increased by 68% between 2010 and 2019, with over eight million seats added.

Pakistan’s own airlines were flat in 2019 versus 2010, with their share falling from 52% to 31% – the lowest in many years.

This decline, eliminating the growth from 2014-2017, was partly from Shaheen Air’s cessation. In 2018, over seven in ten of Shaheen Air’s seats were deployed internationally, mainly to the core Pakistan markets of the UAE and Saudi Arabia.

Nor was it assisted by PIA’s international seats falling by over 800,000 – hopefully partly from it attempting to focus on profitable and marginal routes that could be improved.

PIA’s ban from the EU this year will obviously not help, with one-quarter of the operator’s international capacity to/from Europe. It has just been announced that its UK services will resume in August.

Meanwhile, foreign airlines have inevitably strengthened their offerings, with their seats growing by 137% since 2010 – up over eight million. Foreign airlines were solely responsible for the country’s international growth in this period, with Saudia, Emirates, Qatar Airways, flydubai, and Air Arabia growing the most.

Saudia, which was already Pakistan’s leading airline at the start of the decade, added the most seats of all foreign airlines, cementing its position. Saudia had 14 routes to five Pakistani airports last year; with 555,000 seats, Jeddah – Lahore was its top route.

Like South Asia generally, Pakistan is the bread-and-butter of the MEB3: Emirates, Qatar Airways, and Etihad.

Collectively, the MEB3 had 4.8 million seats to/from Pakistan last year, up by nearly three million since 2010.

Perhaps surprisingly, the MEB3 had ‘only’ 24% of total international seats last year, while their share of capacity by foreign airlines was unchanged at 35%. This was from reducing capacity in more recent years.
Riaz Haq said…
#Pakistan To Have 3 New Domestic Airlines: Q-Airlines, Fly Jinnah and Jet Green, in addition to AirBlue, AirSial and SereneAir. New additions will be a huge boost to Pakistan’s domestic #aviation market with cheaper fares and more seats, via @simple_flying

Pakistan’s domestic market is set to receive a significant boost as the country prepares to launch three new airlines. Two of these startups have completed the necessary administrative processes, while the third remains under scrutiny. Subject to a successful first year, the carriers may also go on to operate international services.

Initially limited to domestic operations
As reported earlier by Gulf Today, three airline startups are currently swapping paperwork with the Pakistan Civil Aviation Authority (PCAA). Should they be granted permission to commence scheduled commercial operations, this would double the country’s number of private airlines.

This would be a huge boost to Pakistan’s domestic market. According to ARY News, two of the three airlines have already completed the PCAA’s administrative processes. The names of these startups are Q-Airlines and Fly Jinnah.

Having completed these processes, these two proposed airlines will have their documents forwarded to the government’s Aviation Division. If the federal cabinet grants them approval, they will then be issued with licenses to commence operations. The PCAA requires new airlines to spend their first year operating solely domestic flights with a fleet of three aircraft.

The third new carrier is known as Jet Green Airlines. This startup is a little further behind in the bureaucratic process, and remains under scrutiny from the PCAA. It will hope that its documents will be forwarded to the Aviation Division with minimal further delay, to avoid being left behind by its competitors, which may take to the skies first. After the provisional year-long domestic period, the airlines may be granted permission to operate internationally.

Pakistan already has a further three private airlines up and running. These are as follows.

airblue – Founded in 2003 and commenced operations in June 2004. Operates a 10-aircraft fleet of Airbus A320 family planes. As well as its core network within Pakistan, airblue also has focus cities in Saudi Arabia and the UAE.
SereneAir – Founded in May 2016 and commenced operations in January 2017. Its small fleet (1x Airbus A330, 4x Boeing 737) serves an eight-destination domestic network.
AirSial – Despite being founded in October 2017, AirSial only commenced operations in December. As such, it is still in its year-long probationary period. It currently operates a fleet of just three A320 aircraft between five domestic destinations.

Riaz Haq said…
#Pakistan To Have 3 New Domestic Airlines: Q-Airlines, Fly Jinnah and Jet Green, in addition to AirBlue, AirSial and SereneAir. New additions will be a huge boost to Pakistan’s domestic #aviation market with cheaper fares and more seats, via @simple_flying

Pakistan’s domestic market is set to receive a significant boost as the country prepares to launch three new airlines. Two of these startups have completed the necessary administrative processes, while the third remains under scrutiny. Subject to a successful first year, the carriers may also go on to operate international services.

Initially limited to domestic operations
As reported earlier by Gulf Today, three airline startups are currently swapping paperwork with the Pakistan Civil Aviation Authority (PCAA). Should they be granted permission to commence scheduled commercial operations, this would double the country’s number of private airlines.

This would be a huge boost to Pakistan’s domestic market. According to ARY News, two of the three airlines have already completed the PCAA’s administrative processes. The names of these startups are Q-Airlines and Fly Jinnah.

Having completed these processes, these two proposed airlines will have their documents forwarded to the government’s Aviation Division. If the federal cabinet grants them approval, they will then be issued with licenses to commence operations. The PCAA requires new airlines to spend their first year operating solely domestic flights with a fleet of three aircraft.

The third new carrier is known as Jet Green Airlines. This startup is a little further behind in the bureaucratic process, and remains under scrutiny from the PCAA. It will hope that its documents will be forwarded to the Aviation Division with minimal further delay, to avoid being left behind by its competitors, which may take to the skies first. After the provisional year-long domestic period, the airlines may be granted permission to operate internationally.

Pakistan already has a further three private airlines up and running. These are as follows.

airblue – Founded in 2003 and commenced operations in June 2004. Operates a 10-aircraft fleet of Airbus A320 family planes. As well as its core network within Pakistan, airblue also has focus cities in Saudi Arabia and the UAE.
SereneAir – Founded in May 2016 and commenced operations in January 2017. Its small fleet (1x Airbus A330, 4x Boeing 737) serves an eight-destination domestic network.
AirSial – Despite being founded in October 2017, AirSial only commenced operations in December. As such, it is still in its year-long probationary period. It currently operates a fleet of just three A320 aircraft between five domestic destinations.

Riaz Haq said…
Pakistan - Air transport, passengers carried,value%20of%20625%2C200%20in%201972.

The value for Air transport, passengers carried in Pakistan was 6,880,637 as of 2018. As the graph below shows, over the past 48 years this indicator reached a maximum value of 9,628,354 in 2016 and a minimum value of 625,200 in 1972.

Definition: Air passengers carried include both domestic and international aircraft passengers of air carriers registered in the country.

Source: International Civil Aviation Organization, Civil Aviation Statistics of the World and ICAO staff estimates.

Riaz Haq said…
#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.

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.

Riaz Haq said…
Bilal I Gilani
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
Riaz Haq said…
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.

Popular posts from this blog

Pakistani Women's Growing Particpation in Workforce

Bill Gates and BMW Back Pakistani-American Mujeeb Ijaz's Battery Startup

Pakistan's Saadia Zahidi Leads World Economic Forum's Gender Parity Effort