Middle East airlines ruining Pakistan aviation: Pakistan senator

[uzairali]

http://tribune.com.pk/story/988387/prob ... pia-babar/

Can someone post the whole story please as I'm on mobile.


My take is, the Middle East carriers gave PIA a wake up call. Now it's doing better, new cities are being served. However the govt must help balance the competition. Air canada, Lufthansa, American Airlines too are very profitable and deliver good product but in the face of international passengers beyond Asia, they cannot match middle eastern airlines and gov't helps balance competition.

There used to be time when Swiss, Lufthansa, BA and many other airlines will fly direct. Terrorism is one reason they withdrew but now Pakistan is much better, but they will never fly here again due to how good competition me3 give. If they try to come, the me3 can lower their price and drive out competition because they're making huge profits.

For example gulf air serves many many cities in Pakistan but India is only few when it's a far bigger country.

So it is PIA fault for losing out and delivering bad product (delays, outdated etc), but now govt has to help it out (One example done is reducing tax on purchasing airplanes/parts where it used to be 30%)

[Bluemax]

The Express Tribune

Middle Eastern carriers ruining PIA: Babar

By Maryam UsmanPublished: November 10, 2015

ISLAMABAD: While opening discussion on his motion on the performance of Pakistan International Airlines (PIA) on Monday, PPP Senator Farhatullah Babar called for inquiry into the reasons behind granting unlimited traffic rights to the Middle Eastern carriers.

He blamed the Middle East (ME) based airlines operating in Pakistan for making PIA a loss-making enterprise just when there is talk of its imminent privatisation.

PIA, travel agency officials to come under the scanner

“PIA has been thrown to the wolves, raising serious questions that must be probed,” the senator said.

The losses incurred by the national carrier have often been blamed on overstaffing. “While PIA is certainly overstaffed, its current salary bill of around 17% of the revenue is within the limits of 25% practiced in the industry,” he said.



States own the air space over their territory and negotiate commercial aviation treaties keeping in view national interest and fair competition, he said. “All subjects of negotiations have been totally ignored in the case of the three ME airlines,” Babar said.

The PIA mess

Giving examples he said that previously Gulf based airline had four weekly flights to Islamabad and Lahore. Now that airline flies 14 weekly flights to Islamabad, besides having been given additional new routes of Sialkot, Faisalabad and Multan, the PPP senator said.

Minister In-charge Sheikh Aftab said that the current government was working to improve the situation. They have acquired some aircraft on dry lease and losses of billions of dollars have been reduced.

Published in The Express Tribune, November 10th, 2015.

[Sherry3002]

Already been discussed in numerous threads!

[kash]

I personally don't think ME3 are ruining PIA. In fact they are providing a much better service to the passengers than 'Perhaps It Arrives' (PIA). The quality of convenience, comfort level and frequency with EK, QR and EY is very good. It would be really good for BA and others to come into PK as this will drive down the cost of tickets.

[Hamad]

I really don't like this ME3 Bashing occurring from different areas/Airlines of the world (including the USA and Europe).
Yes of course there might be advantages that EK, EY or QR have in their respective countries but subsidies or sth. like that aren't the key factors but furthermore: 1.) better flying conditions (like no ban of night flights, geographically good located, lower costs as there are lower or no taxes in the entire Country, etc), 2.) in most cases better Cabin Product, 3.) can offer good rates cause of Economies of Scale as they can fill even an A380 with a healthy load of 70-80% (or in peak season almost 100%) to cities like Mauritius, Manchester, Düsseldorf, Copenhagen, etc.

The ME3 Airlines brought a great competition onto the Aviation flying Market and contributes that we can fly for relatively low fares across the globe.

PIA has to improve by itself and have to convince Passengers to fly with them with a better Cabin Experience (including better Service on Board and on the ground), newer Aircraft and a better on time Performance. With the acquiring of some newer Aircraft PIA is on a good way and I hope to see them soon in some Cities (like Frankfurt) -they have closed- back again.

Thats my personal point of view.

[Sherry3002]

I really don't like this ME3 Bashing occurring from different areas/Airlines of the world (including the USA and Europe).
Yes of course there might be advantages that EK, EY or QR have in their respective countries but subsidies or sth. like that aren't the key factors but furthermore: 1.) better flying conditions (like no ban of night flights, geographically good located, lower costs as there are lower or no taxes in the entire Country, etc), 2.) in most cases better Cabin Product, 3.) can offer good rates cause of Economies of Scale as they can fill even an A380 with a healthy load of 70-80% (or in peak season almost 100%) to cities like Mauritius, Manchester, Düsseldorf, Copenhagen, etc.

The ME3 Airlines brought a great competition onto the Aviation flying Market and contributes that we can fly for relatively low fares across the globe.

PIA has to improve by itself and have to convince Passengers to fly with them with a better Cabin Experience (including better Service on Board and on the ground), newer Aircraft and a better on time Performance. With the acquiring of some newer Aircraft PIA is on a good way and I hope to see them soon in some Cities (like Frankfurt) -they have closed- back again.

Thats my personal point of view.

While I respect your opinion, and somewhat agree with you that PIA must improve their services, dishing out so many slots to the ME6 and allowing them to come to Pakistan so often is wrong. This even happens in the USA and Europe but their respective governments are taking action against this. BA, LH, UA etc. have also voiced concerns over this.

For example if PIA becomes the world's best airline, or a large airline like the ME3, and they begin to operate 3 flights to one city of their country, almost 20+ flights a day then I am sure that their countries governments would be very protective. PIA can't prosper because who'd want to fly to Pakistan? No one. Every one wants to fly to Dubai which is why they are so prosperous.