Licence saga and PIA losses

A current report has revealed that PIA has now misplaced greater than Rs100 billion because the faux pilot licences scandal in 2020, and though it will seem that the licence problem has been resolved and the nationwide flag provider will be capable to restart probably profitable flights to a number of locations, heavy losses are anticipated to proceed for a number of years. It’s because, most notably, competitors has popped up on a number of the most profitable worldwide routes. Even when PIA will get permission to fly to these locations once more, they’re unlikely to be as worthwhile as earlier than.

For instance, PIA was the one airline providing direct flights to the UK for a number of years. Nonetheless, British Airways and Virgin Atlantic have each began direct flights a number of instances every week, and an growing variety of handy one-stop flights are additionally out there, starting from funds choices to full-service airways. The lack of greater than 1,000 flights to the UK yearly has value the airline an quantity in extra of Rs85 billion because the European ban was imposed. Additionally, whereas PIA is meant to be a full-service airline, it’s far behind most of its ‘equal’ opponents by way of requirements and is far more costly than the funds choices. This additional thins the variety of passengers that will select our nationwide airline.

Most aviation consultants agree that clearance to fly to the UK and different Europe nations won’t be given earlier than the top of this 12 months, which may push losses on these routes previous the Rs150 billion mark. Within the interim, it is vitally potential that some European airways can also begin flights to Pakistan, which might threaten additional losses — PIA has misplaced greater than Rs16 billion on flights to mainland Europe because the ban was imposed. Even when there isn’t any competitors on direct flights, most Center Japanese and Turkish carriers that fly to Pakistan have handy and inexpensive connecting flights to a number of European locations, whereas PIA solely flew to a handful of cities.

Nonetheless, whereas some ‘airline nationalists’ are calling for additional funding and elevated safety for PIA, aside from the pointless value burden on the federal government, such measures would damage Pakistani shoppers. PIA ought to, as a substitute, be on the lookout for methods to enhance high quality and reduce prices. However whereas each of those are doable, they’ve lengthy been an uphill process because of the political danger of firing tons of of redundant PIA staffers, and the unwillingness of many staffers to do something or put in any effort past the naked minimal.

Revealed in The Categorical Tribune, September 17^th, 2022.

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