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| Passenger Aircraft at Karachi International Airport |
Why are the domestic air fares in Pakistan three times higher than those in India for similar distances? Why does state-owned PIA control two-thirds of Pakistan's domestic market? Why isn't there more competition on domestic routes in Pakistan?
Why are state-owned airlines, including PIA and Air India, losing a lot of money, requiring massive taxpayer subsidies and still performing poorly? Why aren't these airlines run more efficiently? Are PIA jobs used for political patronage? Why does PIA fly so many empty seats rather than cut fares to expand market?
Viewpoint From Overseas host Faraz Darvesh discusses these questions with Misbah Azam and Riaz Haq (www.riazhaq.com)
https://youtu.be/hh99nMnueBA
Related Links:
Haq's Musings
South Asia Investor Review
Pakistan Air Travel Market
Pakistan $20 Billion Tourism Industry Booming
Saving PIA, Railways and Education in Pakistan
Pakistan: Political Patronage Trumps Public Policy
Riaz Haq's Youtube Channel
7 comments:
India tried to sell its national airline. It got zero bids
http://money.cnn.com/2018/05/31/investing/air-india-privatization-fails/index.html
India has failed to find a buyer for its ailing national airline.
Selling Air India was one of the government's economic priorities for this year, and the failure of the auction will dampen hopes that it could privatize other state-owned companies.
Bidding for the national carrier closed Thursday without a single prospective buyer coming forward.
"As informed by the transaction adviser, no response has been received for the expression of interest floated for the strategic disinvestment of Air India," the Indian Ministry of Civil Aviation said on its official Twitter account.
The government put Air India on the auction block last year, and was offering bidders the chance to buy 76%. It wants to scale back taxpayer support for an airline that has lost money for years.
The auction deadline had already been extended in the hope that a buyer may come forward. The future of the indebted carrier is now very uncertain.
"Further course of action will be decided appropriately," the ministry said in its tweet.
Air India declined to comment, referring the matter to the ministry. Aviation ministry officials did not respond to requests for comment.
Despite its losses, and growing competition from budget carriers such as SpiceJet and IndiGo, Air India is still a major player in an aviation market that is projected to be the world's third biggest by 2026.
#Pakistan #Airline With 14,000 Staff for 30 Planes to Cut Half Its Workforce. Even before #Covid restrictions, #PIA was banned from key markets including the #US and #Europe. And it missed out on peak travel periods like the annual #Hajj pilgrimage. https://www.bloomberg.com/news/articles/2021-04-27/half-of-jobs-to-be-cut-as-pakistan-s-airline-fights-to-survive
Even airlines in good financial health have been left reeling because of the coronavirus, which has caused dozens to collapse and thousands of job losses globally. In its latest outlook last week, the International Air Transport Association said carriers worldwide will lose about $48 billion in 2021 as virus flareups and mutations extend the timeline for a restart of global air travel.
PIA had 30 aircraft as of Sept. 30, including 12 Boeing Co. 777s and 11 Airbus SE A320s. Hussain didn’t specify what changes would be made to the fleet, which also includes ATR aircraft, but he said the size would be “kept under 30” and include more fuel-efficient planes. PIA will no longer serve destinations such as Tokyo and Manila, Hussain said.
Pakistan vowed to cut jobs and sell non-core assets after a series of bailouts, including one of 3.2 billion rupees in June so the airline could meet interest payments. About 2,000 employees have taken voluntary redundancy already, according to the airline. Meanwhile, non-core operations such as catering and engineering will be outsourced, said Hussain, a former central bank governor.
Other assets are also being assessed, including the Roosevelt Hotel in New York, which the airline acquired during its loftier days as a symbol of Pakistani prestige. The hotel was closed last year and may be sold or redeveloped.
#Pakistan's Alvir Airways gets operating license, eyes ERJ (#Brazil-made Embraer regional jets).
It plans to operate from 3 hubs (#Karachi, #Lahore, & #Islamabad) to 3 destinations (#Gwadar, #Skardu, & #Turbat) - to promote #tourism & regional air access. https://www.ch-aviation.com/portal/news/105836-pakistans-alvir-airways-granted-an-ol-eyes-erjs
Pakistani startup Alvir Airways (Karachi Int'l) has been granted a Tourism Promotion and Regional Integration (TPRI) operating license by the Pakistan Civil Aviation Authority (PCAA), according to a statement issued by the regulator.
Under the National Aviation Policy of 2019, the license is valid for five years until June 2026, read the statement issued by PCAA spokesman Saad Bin Ayub.
According to the PCAA, Alvir Airways intends to acquire two unspecified Embraer jets for the startup of operations and will add more of the type in time.
The airline plans to operate from three hubs in Pakistan, namely Karachi Int'l, Lahore Int'l, and Islamabad Quaid-e-Azam Int'l to three destinations - Gwadar, Skardu, and Turbat - to promote tourism and regional air access. Alvir Airways will be pitched against PIA - Pakistan International Airlines (PK, Islamabad Quaid-e-Azam Int'l) which currently holds 100% of the market share in terms of weekly seat capacity at Gwadar, Skardu, and Turbat, according to the ch-aviation capacities module. PIA serves Skardu twice weekly from Faisalabad, daily from Islamabad, 3x weekly from each of Karachi and Lahore, and weekly from Sialkot, the ch-aviation schedules module reveals. PIA also serves Gwadar 4x weekly from Karachi; and Turbat weekly from Islamabad and thrice-weekly from Karachi.
The PCAA said Alvir Airways was granted the license in line with a vision by Prime Minister Imran Khan to promote tourism and regional connectivity. It was presented by PCAA Director-General Khaqan Murtaza and other dignitaries to Alvin Airways Chief Executive Officer Tehseen Awan, Managing Director Syeda Huma Batool, and Chief Operating Officer Shahzaib Mahmood at the regulator's head-office in Karachi on July 12, 2021.
Speaking at the event, Awan said that Alvir Airways would start domestic flights in the first phase before purchasing more aircraft. He said the company aimed to provide employment in the aviation sector and become a major player in the Pakistan aviation industry.
The company has begun recruiting staff on its website, which, however at this stage, gives no further insight into its corporate set-up.
Neither the company, nor Awan were immediately available for comment. Awan currently holds the position of managing director of Vetworld, an animal health company, according to his LinkedIn profile.
Revving up in low gear: The paradoxes in India's transport sector
https://www.business-standard.com/article/opinion/revving-up-with-brakes-on-the-paradoxes-in-india-s-transport-sector-122070800816_1.html
No Indian airline makes money, railways' passenger traffic is stagnant, and roads have a revenue imbalance problem, but investments in all three are like never before, notes T N Ninan
India’s transport sector offers a strange mosaic of stagnant traffic trends, poor or negative returns, and yet unprecedented levels of investment for the future. After years of vast sums being ploughed into all forms of transport, the next two or three years could see the results of that investment in the form of transformational change in the air, on highways and expressways, and in the railways. Here’s hoping.
Airline seeks flights to smaller cities
https://tribune.com.pk/story/2501376/airline-seeks-flights-to-smaller-cities
KARACHI:
A domestic airline already operating in Pakistan has sought approval from the CAA to launch flights to smaller airports using low-capacity aircraft.
The move aims to provide air travel options for passengers currently relying on buses, trains, and cars for long journeys from the North to the South of the country.
During a press conference on Monday, Director General of the CAA Nadir Shafi Dar addressed several matters concerning Pakistan's aviation sector. It was his first formal media briefing since the CAA's recent restructuring into two divisions.
Dar announced that airports in smaller cities, including Sukkur, Multan, Faisalabad, and Sialkot, and more remote regions like Gwadar, Gilgit, and Skardu, would soon offer regular air services.
An existing airline has already requested permission to operate small aircraft on these routes, with plans to introduce flights for up to 40 to 50 passengers by early 2025.
The airline will initially deploy at least three small aircraft, with services expected to begin in the second quarter of 2025.
The DG further expressed optimism that more airlines would follow suit, boosting air connectivity for primary and secondary airports across the country.
"Currently, about 30 million passengers travel from the North to the South annually by bus, train, or car. If the airline sets reasonable fares, this route could become commercially viable," said Dar.
He also provided an update on PIA, saying that an audit of all national airline aircraft had been initiated following several incidents of technical landings and other issues.
Sukkur Airport expected to launch international flights soon - Pakistan
https://www.dawn.com/news/1898964
International flights from Begum Nusrat Bhutto Sukkur Airport are expected to begin soon amid plans to expand the airport, it emerged on Wednesday following a Pakistan Aviation Authority (PAA) meeting.
PAA’s Planning and Development Director Abbas Sheikh and other officials visited the Sukkur Chamber of Commerce and Industry today for a meeting and to discuss the airport’s expansion. During the occasion, the chamber’s committee convener, Muhammad Mohsin Farooq, announced that approval was granted for two weekly flights from Sukkur to Jeddah beginning from July this year.
He credited the development to the efforts of Sukkur Chamber of Commerce President Khalid Kakezai and former president Bilal Waqar Khan.
The officials also discussed expansion plans for the Sukkur Airport, including building cargo terminals and runways to facilitate cargo flights.
The officials directed that estimates be provided for products exported from Sukkur and surrounding areas to develop a comprehensive development plan for passenger and cargo flights.
Former president of the Sukkur Chamber of Commerce, Abdul Fatah Sheikh, highlighted the various products exported from the city, including dates, cotton, rice, pickles, fruits, vegetables, fish, and handicrafts, which are currently exported through Karachi, Multan, and Faisalabad.
However, with the airport’s expansion, these products will be exported directly from Sukkur, he said.
In 2019, Pakistan International Airlines launched direct international passenger flights from Sialkot International Airport to Europe.
India’s aviation meltdown exposes long-brewing pilot fatigue crisis
Aviation experts and pilot groups say IndiGo’s unprecedented scheduling crisis this month was due in part to an industry failure to address pilot fatigue.
https://www.washingtonpost.com/world/2025/12/27/india-indigo-aviation-crisis-pilots/
NEW DELHI — Every couple of weeks, the Indian pilot is required to make three short-haul night flights over two consecutive nights. As she tries to rest up before her next daytime flight, the 40-year-old says she often lies awake worrying about her health.
“I don’t think I will live long if I continue flying,” said the Delhi-based pilot for IndiGo, India’s largest airline. “My body, my brain — everything has just shut down. This is zombie work.”
She was hopeful when she learned the country’s aviation regulator was instituting new rules to combat pilot fatigue — eliminating the most punishing flight patterns, limiting night landings and mandating longer rest periods. But when the rules finally came into force in November, chaos followed.
It coincided with an expansion of flight schedules, in part to accommodate India’s largest-ever wedding season, and soon cancellations and delays were piling up. By early December, IndiGo faced a snowballing disaster, described by pilots and aviation experts as a crisis unique in Indian aviation history. Almost 1 million bookings were affected between Nov. 21 and Dec. 7, the Civil Aviation Ministry told local media.
During the worst week, Indigo said it canceled about 4,500 flights, including almost all of those in and out of the capital of New Delhi on Dec. 5. Across the country, airport departure boards glowed red. Passengers were left with little information. Bags piled up and went missing.
“No airline, however large, will be permitted to cause such hardship to passengers,” Civil Aviation Minister Ram Mohan Naidu told Parliament on Dec. 9. But the ministry and its main regulator, the Directorate General of Civil Aviation (DGCA), temporarily exempted IndiGo from the new rules governing flight schedules to help stabilize the situation. The 40-year-old pilot and her colleagues felt like they were back where they began.
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An aviation boom in a shrinking field
Two decades ago, India had a plethora of domestic carriers. IndiGo, known for its lean staffing, punctual takeoffs and fast turnarounds, steadily rose to dominance, powering the world’s fastest-growing aviation industry.
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But that growth was accompanied by unprecedented consolidation. Since the early 2000s, at least three major Indian airlines have folded and at least five have been acquired or merged, leaving two major domestic players: IndiGo and Air India.
IndiGo has continued to outpace its older, more established rival, amassing more than 60 percent of the domestic market and more than $800 million in profits, according to the company’s latest annual report. For those looking to fly out of smaller airports or to less-frequented cities, IndiGo is often the only available option.
Underlying IndiGo’s ascent, pilots say, was a culture of intense pressure around work schedules that reshaped industry norms, particularly after the coronavirus pandemic. “I have often gone to the brink before I get rest,” the senior pilot told The Post.
Amit Singh, who has more than three decades of experience in the cockpit, said pilot rest standards in the United States and Europe are designed to protect sleep quality through circadian modeling and fatigue research, while India’s approach has largely been based on counting hours. U.S. airlines are required to guarantee pilots eight hours of uninterrupted sleep opportunity and adhere to cumulative limits that account for fatigue over time, he said.
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