PIA faces losses despite dominating domestic flights

ISLAMABAD: In a recent disclosure to the National Assembly, the Ministry of Aviation revealed that Pakistan International Airlines (PIA), despite being the leader in the number of domestic flights, is facing a staggering loss, while other airlines are experiencing significant revenue growth.

The aviation report detailed the operations of both national and international airlines operating domestically in Pakistan. Alongside PIA, four other airlines Serene Air Private Limited, Air Blue Ltd, Fly Jinnah Services Pvt. Ltd and Airsial Ltd have been annually contributing to revenue growth, contrasting PIA’s struggle with mounting liabilities.

According to official documents, these airlines collectively completed 537 domestic flights. PIA topped the list with 214 flights, followed by Fly Jinnah with 105 flights. Airsial Ltd operated 70 flights, Air Blue 64, and Serene Air 63 flights.

In a week, 32 international airlines operated a total of 602 flights departing from foreign countries. Fly Dubai led the pack with 78 flights, followed closely by Saudi Arabia and Emirates Airlines, both with 67 flights each. Additionally, Air Arabia and Qatar Airways each recorded 60 flights.

The financial health of the airlines further highlighted the contrasting fortunes. Serene Air Private Limited reported an annual revenue of Rs138.95 billion employing 711 individuals. Airsial Ltd closely matched this with Rs138.95 billion in revenue and 451 employees. Air Blue Ltd stood out with an annual revenue of Rs155.624 billion

On the other hand, amidst discussions on outsourcing airports to foreign entities, the Ministry clarified that Islamabad’s airport had not been partially or completely outsourced. The Pakistan Civil Aviation Authority (PCAA) had signed a transaction advisory services agreement with the International Finance Corporation for outsourcing Islamabad International Airport for 15 years.

The bidding deadline for this process has been extended until May 15, 2024, with the successful bidder to be disclosed thereafter.

It was emphasized that only specific segments of Islamabad Airport, such as the Passenger Terminal Building, landside facilities like car parks, and the Cargo Terminal, would be outsourced. Essential airside services such as Runways, Taxiways, Rescue and Firefighting Services, Air Traffic Control Tower, as well as Air Navigation Services, will remain under the Pakistan Civil Aviation Authority. Similar plans for Lahore and Karachi airports are also in consideration.