Latest news with #PakistanInternationalAirlines'
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First Post
01-05-2025
- Business
- First Post
India shuts airspace to Pakistan: Will this ground PIA for good?
India's sweeping ban on Pakistani aircraft, following Islamabad's closure of its airspace to Indian carriers, is threatening to derail Pakistan International Airlines' already troubled privatisation bid. With key Southeast Asian routes disrupted and mounting financial pressure, the future of Pakistan's national carrier hangs in the balance as regional tensions take a new turn — in the skies read more View of a Pakistan International Airlines (PIA) passenger plane, taken through a glass panel, at Islamabad International Airport, Pakistan, October 3, 2023. File Image/Reuters India's decision to restrict access to its vast airspace for all aircraft linked to Pakistan — including those registered, operated, or leased by Pakistani carriers or the state — has triggered a significant escalation in the ongoing diplomatic standoff between the two neighbours. The ban, a direct response to Pakistan's earlier airspace closure for Indian airlines, is being widely interpreted as a strategic move with sweeping consequences for Pakistan International Airlines (PIA), a national carrier already teetering under heavy financial distress. STORY CONTINUES BELOW THIS AD The airspace restrictions, which came into effect on April 30 and will continue until at least May 23, are poised to severely disrupt select PIA routes to Southeast Asia and further complicate Islamabad's ongoing struggle to privatise the loss-making airline. The background to this tit-for-tat action lies in the terror attack on April 22 in Pahalgam, Jammu and Kashmir, where 26 individuals were killed. Pakistan's closure of its own airspace to Indian flights came shortly after the attack, a move perceived by analysts as a preventive step to avoid any potential military response from India. India formally notified aviation authorities through a NOTAM (Notice to Air Missions): 'Indian airspace not available to Pakistan registered aircraft and aircraft operated or leased by Pakistan airlines. These include military flights.' The Indian Ministry of Civil Aviation later confirmed the scope of the restrictions, stating that no aircraft associated with Pakistan, whether commercial or military, would be permitted to enter Indian airspace. The move was widely viewed as a non-violent yet effective means to apply economic and political pressure. How this move has impacted PIA For PIA, the timing of the Indian restriction could hardly be worse. The airline is currently operating with fewer than 100 aircraft and has been aggressively trying — and failing — to attract investors in its privatisation bid. The ban immediately affected six to eight of PIA's weekly flights that would typically use Indian airspace en route to destinations like Kuala Lumpur and Seoul. STORY CONTINUES BELOW THIS AD According to International Air Transport Association (IATA) summer schedule data, PIA had approvals for: Four weekly flights between Islamabad and Kuala Lumpur, Two flights from Lahore to Kuala Lumpur, And two more between Lahore and Seoul. These routes, which now require longer and more circuitous paths through Chinese, Laotian and Thai airspace, face significant delays and increased fuel costs. Flights to Colombo, Dhaka, Bangkok, and Hanoi are also affected as carriers must now detour around India's vast territorial airspace, adding both time and expense to their journeys. Although most of PIA's 308 weekly international flights are directed toward West Asia — including countries like Saudi Arabia, the UAE, Qatar, Oman and Kuwait — and thus do not usually overfly India, the financial implications of the disrupted Southeast Asian routes are substantial. Aviation analytics firm Cirium confirms that over 80 percent of PIA's international services operate to West Asia. These routes remain largely unaffected by the ban. However, flights to Southeast Asia now face substantial logistical hurdles and cost implications. 'The flights originating from Islamabad to Kuala Lumpur of Pakistan International Airlines, which generally take about 5 hours 30 minutes, will now take 8 hours 30 minutes… Any aircraft originating from Pakistan that needs to travel to, say, Bangladesh or Sri Lanka will have to take a longer route over the sea… This will lead to increased flying time, increased operating costs, and increased tickets (prices). This will lead to increased turnaround times and a shortage of aircrew. The same aeroplane will have to be rotated back, which will be further delayed… This will lead to less utilisation of these aeroplanes,' ANI quoted Air Marshal (Retd) Sanjeev Kapoor. STORY CONTINUES BELOW THIS AD Adding to the operational strain, PIA also announced on April 30 the suspension of all services to and from Gilgit, Skardu and other northern regions. These remote areas, known for poor road connectivity and difficult terrain, rely heavily on air transport. The halt in flights has disrupted the movement of passengers and goods and raised concern among residents and tourists alike. Though the airline has not officially disclosed the reason for the suspension, sources within Pakistan's aviation industry suggest it is part of a broader effort to streamline costs amid growing financial pressures. How PIA is struggling with privatisation As the ban takes effect, Pakistan's latest attempt to privatise PIA enters a critical phase. After two failed efforts in recent years, the government has reopened the bidding process, offering up to 100 per cent ownership and full managerial control to attract serious investors, reported The Economic Times. The bidding window remains open until June 3, with a final auction expected between October and December 2025. The first major attempt in October 2024 collapsed after only one bidder — the Blue World City consortium — offered Rs 10 billion, significantly short of the Rs 85.03 billion reserve price set by Pakistan's Privatisation Commission. The offer was Rs 75 billion below expectations and was rejected. STORY CONTINUES BELOW THIS AD In response, the government has made several adjustments, reported The Economic Times. A holding company — PIA Holding Company Limited — was created to offload legacy debt and non-core assets. This restructuring brought PIA's liabilities down from Rs 864 billion to around Rs 190 billion. The remaining liabilities include Rs 148 billion in operational debt and Rs 36 billion in employee-related obligations. Non-core assets worth Rs 20 billion have also been separated from the airline's core operations. To make the deal more attractive, the government has offered: Exemption from the 18 per cent General Sales Tax on leased or newly purchased aircraft, Financial support to improve the airline's balance sheet, And protection against certain tax and legal claims. Revised eligibility criteria now allow both airlines and non-airline businesses to participate, provided they meet updated financial benchmarks. For instance, non-airline bidders must demonstrate at least Rs 200 billion in annual revenue as shown in audited financials from December 2023 or later. Still, despite the incentives, the government has struggled to generate investor interest. Industry analysts suggest this is due in part to geopolitical uncertainties, poor legacy performance and a lack of confidence in the airline's turnaround prospects. Also Watch: Denying Pakistani aircraft access to Indian skies not only inflicts economic costs on an already struggling aviation sector but also illustrates India's capacity to impose asymmetric penalties without crossing military thresholds. STORY CONTINUES BELOW THIS AD With inputs from agencies
Arab News
29-04-2025
- Arab News
Three flights depart from Islamabad, Lahore and Quetta as Pakistan begins month-long Hajj operation
ISLAMABAD: Pakistan kicked off its 33-day-long Hajj flight operation on Tuesday, the Pakistan Airports Authority (PAA) said, with three flights departing from Islamabad, Lahore and Quetta for the Saudi city of Madinah. Over 89,000 pilgrims will travel under the government's scheme during Pakistan's Hajj flight operations. They will travel to Makkah and Madinah via 342 flights in total, with the last one departing from Pakistan on May 31. The first Hajj flight for this year, Pakistan International Airlines' PK-713, departed under the Route to Makkah Initiative from Islamabad at 4:45am, carrying 442 pilgrims. The second flight left the eastern Pakistani city of Lahore at 8:30am with, 147 pilgrims aboard, according to the PAA. The third flight left Quetta for Madinah at around 10:10am, carrying 151 pilgrims. Religious Affairs Minister Sardar Muhammad Yousaf and Saudi Ambassador to Pakistan Nawaf bin Said Al-Malki bid farewell to the pilgrims in Islamabad. Yousaf advised Pakistani pilgrims to strictly adhere to Saudi Arabia's laws and respect the local culture during the annual Islamic pilgrimage and said he would 'soon' travel to Saudi Arabia to review Hajj arrangements. 'As Hajj pilgrims, you are traveling to the sacred land as the guests of Allah and ambassadors of Pakistan, and you are urged to respect the laws and culture of Saudi Arabia,' the minister said in a televised address. 'I will take every possible measure to resolve the issues faced by Pakistani pilgrims in Saudi Arabia and will personally be among them to provide facilities.' The Makkah Route Initiative is designed to streamline immigration processes by enabling pilgrims to complete official travel formalities at their departure airports. Initially tested in Islamabad in 2019, the program was later expanded to Karachi, benefitting tens of thousands of Pakistani travelers. This saves pilgrims several hours upon arrival in the Kingdom, as they can simply enter the country without having to go through immigration again. Around 50,500 Pakistani pilgrims will travel to Saudi Arabia under the initiative this year. The scheme was launched in 2019 by the Saudi Ministry of Hajj and Umrah and has been implemented in five countries: Pakistan, Malaysia, Indonesia, Morocco and Bangladesh. A total of 28,400 pilgrims will leave for Saudi Arabia through 100 flights from the Islamabad airport, Pakistan's religious affairs ministry said. Seven special immigration counters have been set up at the Islamabad airport to facilitate pilgrims under the Makkah Route Initiative. The remaining 22,500 pilgrims will avail the scheme at the Jinnah International Airport in Karachi. This year's annual pilgrimage will take place in June. Punjab Minister for Specialized Healthcare Khawaja Salman Rafique and Balochistan Governor Sheikh Jaffar Mandokhail attended departure ceremonies in Lahore and Quetta, respectively. Rafique appreciated efforts of the PAA and all concerned departments in ensuring a smooth conduct of Hajj operations and extended his heartfelt wishes to the pilgrims for a safe and peaceful journey. Balochistan Director Hajj Ilyas Jaffar and representatives of other agencies were present alongside Balochistan Governor Mandokhail at the departure ceremony in Quetta. 'The Honourable governor and other dignitaries requested special prayers for the prosperity of Pakistan and the continued success of all institutions,' the PAA said.
