In the backdrop of its open skies policy, the government is likely to allow at least five new airlines to become part of Pakistan’s aviation industry in one year. The new entrants will not only create competitive environment in Pakistan, but will also break the monopoly of the airlines already operating in the country. However, the new airlines will also challenge the financial health of sinking titanic, the national carrier Pakistan International Airlines. The domestic air traffic has exceptionally increased during the last five years and it is growing at the rate of nine percent annually. In the absence of bullet trains, people desperately want to travel by air. Unfortunately, the airlines prefer to fly empty aircraft rather than lowering their fares. The government should also open new air routes for far flung cities, especially in Balochistan and Gilgit Baltistan. However, the conditions of aircraft must be in line with international standards and approved by International Air Transport Association. Pakistan has also becoming an attractive tourist destination and opening the routes of Gwadar, Turbat and Skardu for foreign tourists will be a good option for airlines to bag profits.
The new airlines will not only resolve the issue of connectivity within remote areas of Pakistan, but also will connect it with foreign countries. Reports suggest the PIA is incurring Rs 300 billion annually losses and there is no reason to keep it within the government fold. Politicization of one of the best organizations of the country has killed the legend. However, it is a lesson for private airlines to minimize their expenditures and concentrate on marketing aspects of their businesses. The price cut is the best option for private airlines, especially foreign carriers, which can bag good profit in the race. People should be allowed to enjoy good service at lower fares.
According to reports, Turkey, Thailand, Malaysia and Dubai with combined population of 250 million operate over 1,000 aircraft, but Pakistan with 210 million populous has a total fleet of 80 aircraft. Malaysia earns $30 billion and Thailand $48 billion by attracting foreign tourists. Pakistan with great potentials of tourist industry is nowhere in the sight. Qatari and Turkish airlines are making billions of dollars profits and are considered top airlines of the world. It is hoped the new aviation policy will prove to be good for the nation and all the business facilities will be provided to the airline owners investing in Pakistan.
