The federal government and its advisors lack any kind of vision regarding the adverse consequences that have arisen from the open sky policy of PML (N) government. Travel by air is not a luxury but has become a necessity. Rate of taxes on an airline ticket continue to be very high in this country and the landing as well as overflying charges are also considerable compared to regional countries. Karachi used to be the hub for connectivity between East and West. It is unfortunately no more. And, Karachi has now become a feeder port to Dubai. Further, the losses made by Pakistan International Airlines (PIA) are a direct consequence of short-sightedness and political shenanigans of successive governments. PIA not only now lacks the equipment (aircraft) that can compete with Middle Eastern carriers its quality of on-board service, including in-house entertainment, is of poor quality. PIA is also in arrears on dues to the Civil Aviation Authority (CAA) which in turn has been unable to pay for the security of its facilities to the Airport Security Force (ASF). Thus, another circular debt is in the making.
Time and again, aviation experts have pointed towards the weaknesses in our Aviation Policy. Even the International Aviation Transport Authority (IATA) has pointed to the formulation and promulgation of charge, enhancement by CAA, without prior consultation. The IATA officials are upset at the revision of navigation and airport charges from 1st of August 2015. The government's unilateral decision to revise charges does not take into account the negative impact, on airlines, especially those operating bigger and heavier aircraft. No information has been provided to users on how the additional revenue will be spent. And, how will it improve CAA's financial position - which continues to be in the negative. The federal government knows that it needs to provide funds to PIA, through banking channels, to keep the national airline flying. PIA has been forced to securitize its receivables and banks are happy to oblige. The need for new aircraft on wet or dry lease persists in PIA to maintain adequate national and international connectivity.
Unfortunately, however, the leadership in Pakistan lacks the vision that is sorely needed in envisaging and formulating a proper aviation policy suited to our needs. Our quest for aviation expertise has thus far suffered from nepotism and cronyism and is not based on any kind of merit. The UAE (Dubai as well as Abu Dhabi) and Qatar have relied on western experts for their national airlines to flourish. While Pakistan continues to depend on its nationals for expertise needed to compete on an international scale. The adverse consequence of this myopia has led to adverse cash flows in PIA - which is now increasingly becoming a regional airline instead of being global. After all, we are a nation of 200 million plus with substantial number of countrymen working in the Middle East, Europe and North America. We need to determine the causes of why Pakistanis prefer to use Middle Eastern Airlines instead of PIA, although the latter offers direct flights. PIA needs autonomy in the true sense. The federal government's ability to commandeer its aircraft needs to end. Further, we need to shun using the national airline for personal as well as political gains. PIA is part and parcel of aviation division falling under the jurisdiction of Ministry of Defence. Ministerial and bureaucratic interference in the national airline needs to end. Terrorist attacks coupled with poor law and order conditions have stopped foreign airlines, other than those from Middle East, to come to this country. However, high aviation charges, abnormal tax rates on purchase of local tickets as well as our continuous failure to assess the spin-off earnings that can accrue and its positive impact on tourism, hotel occupancy and purchase of domestic output by visitors has never led to introduce corrective measures.
Aviations' contribution in our growth (GDP) is less than half a percent. It can go up if we acknowledge the adverse consequences of our short-sightedness in this vital sector. And, come up with a proper all encompassing policy. Do we have the vision and expertise to do so? So far we have not exhibited any. Only cosmetic changes are undertaken so far. Otherwise, it is business as usual.