PIA Will Be Privatized
PIA Will Be Privatized: Federal Cabinet has approved privatization of the Pakistan International Airlines (PIA) in the name of restructuring due to the organization facing a continuous loss. The approval was granted during the Cabinet Committee on Privatisation (CCoP) weekly meeting presided over by Prime Minister Shahid Khaqan Abbasi. Pakistan’s domestic air traffic has grown 10%, which is six 6% higher than the 4% expansion in international air traffic. PIA had 48 aircraft in its fleet which are 35 now with a ratio of 450 employees per aircraft.
The decision was seriously criticized by the PPP leaders and other major political parties.
Although Pakistan’s market size is increasing, the share of domestic airlines is contracting. PIA carried 42% of the passengers in financial year 2016-17 as opposed to the 58% flown by international airlines. Pakistan has a populace of around 210 million, but its airlines have a total fleet of only about 80 aircraft. In this regard work is in progress. Next year in 2019, 5 new airlines are expected to venture into Pakistan’s aviation industry. In the latest sign of growing competition it may bring down passenger fares but will pose challenges to the financially struggling Pakistan International Airlines (PIA). According to a forecast of the International Air Transport Association (IATA), the current rate of growth in Pakistan’s aviation industry is expected to be around 9% per annum which could continue till 2020.
Our air travel market will be welcoming Askari Air, Air Siyal, Go Green, Liberty Air and Afeef Zara Airways. As per sources, Air traffic of the country has swelled 40% over the past five years to 20 million passengers. These carriers will target low-profit, far-off destinations like Gwadar, Turbat, Panjgur, Khuzdar, Dalbandin, Zhob, Rawalakot, Skardu, Chitral, Gilgit, Bannu, Parachinar and Muzaffarabad. They could generate immediate profits because of their tourism potential and work on China-Pakistan Economic Corridor (CPEC) projects.
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