Open Sky policy causing Rs46bln loss to national airlines

Pakistan Sep, 5 2022
Open Sky policy causing Rs46bln loss to national airlines
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KARACHI: Open sky policy of Aviation policy 2015 brought financial loss to Pakistan Civil Aviation industry, whereas nowhere in world foreign airlines are given rights to operate from remote areas like international airlines are allowed to operate at Multan, Sialkot, Rahimyar Khan, Sukkur, Quetta, etc. Nabeel Javed Kahloon Advocate High Court talking to National Courier said Aviation policy 2015 has allowed 14-international airlines to operate in all major International Airports of country resulting in financial loss to PIA and all other local airlines. Negligence and lack of civil aviation knowledge have brought civil aviation industry to failing stage.

Aviation policy issued in 2015 may be declared illegal unlawful and void ab-initio in eyes of law.  He referred Emirates Airline asked for an additional flight to Toronto, which was refused by Canadian aviation authority, whereas UAE government imposed strict visa policies for Canadian citizens even then flights were refused on ground to provide equal opportunity to all carriers. Whereas in our country Emirates International Airline flies 5 times to Karachi and 2 times to all other airports, whereas PIA and other regional airlines of Pakistan are allowed to fly single flight to UAE daily. Loss of market share is directly proportional to increase in traffic rights and frequencies operated by airlines of Gulf region, hence allowing foreign airlines to carry more passengers and load from Pakistan and allowing local and domestic Airlines to suffer badly due to lack of passengers and load to carry. In 2010-11 airlines of gulf region were operating 8,400 flights per year whereas in 2016-17 weekly frequencies had gone up to 18,400  frequencies per year (354 per week), despite fact that there is no exodus of Pakistanis from Gulf to Pakistan nor there was an increase in number of Pakistani expatriates in region.

PIA’s share in international traffic remained almost constant between years 2006 and 2011 because of directives of President and Prime Minister to freeze that capacity allowed to foreign carriers. These orders were issued after PIA and CAA made joint presentations.  From 2011 onwards, Pakistan CAA adopted an over-liberal almost open policy, dishing out traffic rights without any reciprocity and in excess of genuine demand on route between two countries. Allowed weekly frequencies of foreign carriers increased from 101 in 2010 to 498 in 2017, almost 500 percent, which resulted in a further drop in PIA’s share and an increase in loss of revenue.   Despite heavy losses to PIA and regional national airlines they had allowed Emirates airline to fly Airbus A-380 at Islamabad International Airport commencing from month of July 2018 resulting in an increase of financial loss in shape of foreign exchange to national treasury. Whereas Civil Aviation Authority of  Emirates have only allowed smaller PIA jets to fly in their airport to carry passengers and loads.

A survey of about 30,000 passengers traveling out of Karachi, Lahore and Islamabad showed about Rs 46 billion worth of passengers were carried as illegal 6th freedom traffic due to excess capacity granted because of ill-conceived aviation policy of 2015.

Published in The Daily National Courier, September, 05 2022

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Nasir Mahmood
Nasir Mahmood https://www.dailynationalcourier.com/author/nasir-mahmood
Senior Journalist at Daily National Courier. Covering almost all beats including politics, current affairs, sports, metropolis for more than 45 years. Member of Karachi Press Club & KUJ.

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