Rising competition in the aviation sector threatens PIA

Rising competition in the aviation sector threatens PIA

Increasing competition in the aviation industry poses a threat to Pakistan International Airlines (PIA) Corporation Limited, the national flag carrier.

According to documents found in ProPakistani, the Federal Cabinet last month approved the issuance of a Permanent Public Transport (Airline) License to M / s Q Airways (Pvt) Limited for a period of two years until January 21, 2024. Regular Public Transportation (RPT) operations in Pakistan.

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The Aviation Department recently wrote a letter to the company requesting an Air Operator Certificate under the Air Navigation Order within two years from the date approved by the government (February 1, 2022 – January 33, 2024). ) Initiate RPT operations and coordinate with the Directorate of Flight and Flight Standards (HOCAA) for additional guidance.

In addition, M / s Q Airways (Pvt) Limited will be required to provide an amount equal to three billing periods prior to the commencement of RPT operations as collateral against Civil Aviation Authority (CAA) fees. However, if the amount of settlement periods is small, the security deposit currently held by the Pakistan Civil Aviation Authority (PCAA) will be superior / invalid compared to the amount of the three settlement periods. This amount will be based on the software operations submitted to this Directorate. The RPT license terms are being reviewed and will be sent for retrospective application and compliance once approved by the Competent Authority.

It should be noted that PIA is among the 15 state-owned enterprises that suffered losses. In 2017-18, 47.761 billion.

The only dominant factor that poses the greatest risk is the government’s ability to take into account the existing fiscal area. Allow the PIA to clear its balance sheet by incurring debts and liabilities. If this risk is not reduced, the restructuring plan will not be able to achieve its ultimate goal of financial sustainability and operational autonomy.

On the other hand, growing competition with British Airways and Virgin Atlantic on paid routes in the UK and with Air Blue, Air Sial and other local airlines will place additional obligations on PIA to improve service, on-board entertainment and fares. rationalization of discounts and delivery tariffs.

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