Pakistan Air Travel Growth Among Fastest in the World

[RiazHaq]

Haq's Musings: IATA Says Pakistan Among Fastest Growing Domestic Air Travel Markets

IATA (International Air Transport Association) forecasts Pakistan domestic air travel will grow at least 9.5% per year, more than 2X faster than the world average annual growth rate of 4.1% over the next 20 years. The Indian and Brazilian domestic markets will grow at 6.9% and 5.4% respectively.


Source: CAA Via Express Tribune

In a clear sign of Pakistan's rising middle class choosing air travel, the number of domestic and international air travelers in Pakistan grew by 8% to 17.9 million in fiscal year 2013-14 compared to previous year, recording the fastest growth in passenger traffic in the last three years, according to data provided by the Civil Aviation Authority (CAA) and published by Pakistan's Express Tribune newspaper. Growth in air travel is pushing new airport upgrades and new construction to handle more passengers. Examples of new or upgraded airports include Islamabad, Multan and Sialkot.

Chinese domestic air travel market will surpass the US market to claim the number 1 spot by 2030, according to figures released by by IATA. Currently the ninth largest market, India will see a total of 367 million passengers by 2034, an extra 266 million annual passengers compared to today. It will overtake the United Kingdom (148 million extra passengers, total market 337 million) to become the 3rd largest market around 2031.

Pakistan International Airlines, the nation's state-owned carrier, is continuing to lose both market share and money in the midst of explosive growth in air travel. Pakistan's private carriers Shaheen, Air Blue and Indus Air and foreign carriers like Emirates and Saudia have benefited at the expense of PIA.

"It is an exciting prospect to think that in the next 20 years more than twice as many passengers as today will have the chance to fly. Air connectivity on this scale will help transform economic opportunities for millions of people," IATA chief Tony Tyler said in his comments on the report. In 20 years' time, "we can expect aviation to be supporting around 105 million jobs and USD six trillion in GDP," he said.

Sensing the opportunity, the government of Pakistan has recently announced a new national aviation policy, NAP 2015, to attract new investments in the aviation sector. It reduces or eliminates a number taxes and duties on investments. Announcing the policy, Prime Minister Nawaz Sharif said: “The present taxes and duties on the aviation sector are unjustified, and a major hurdle in the growth of travel and cargo handling through air.”

The NAP 2015 offers a bilateral “Open Skies Policy” to other countries, based on reciprocity; a level playing field for domestic and national airlines, and the liberalized aviation sector by allowing markets to determine the price, quality, frequency and range of air services options; and taxes structured and simplified in line with the best international practices to promote transportation, spur GDP growth and create jobs.

It's good to see that the aviation sector in Pakistan is finally beginning to get the attention it deserves as a growth market to increase investment, improve service to travelers and create new jobs.


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Haq's Musings: IATA Says Pakistan Among Fastest Growing Domestic Air Travel Markets

 

[Erroroverload]

Rising middle class of PAKISTAN . good

 

[Kambojaric]

Faisalabad is also being upgraded from a domestic to international airport. Probably Etihad and Qatar will want a bigger piece of the pie given that their other Gulf rivals are already well established in the Pakistani market now.

 

[Viper0011.]

Haq's Musings: IATA Says Pakistan Among Fastest Growing Domestic Air Travel Markets

"It is an exciting prospect to think that in the next 20 years more than twice as many passengers as today will have the chance to fly. Air connectivity on this scale will help transform economic opportunities for millions of people," IATA chief Tony Tyler said in his comments on the report. In 20 years' time, "we can expect aviation to be supporting around 105 million jobs and USD six trillion in GDP," he said.

There will be SO MUCH going on with regards to the Pakistani economy that it's not even funny. Just profits and taxes from this one item here, will by itself add a 25% increase in the defense budget. Taking estimated $ 5 billion defense budget to around $ 6-7 billion. Add the electric production, business growth, trade zones, military manufacturing, Pakistan's defense budget by 2018 would have grown to about $ 10-12 billion. By 2021, it should be around $ 14 billion and be where Turkey's defense budget is by 2024.

Of course this could all happen sooner if the country goes on a vertical economic climb of sustaining growth at 6% or above for the next 5 years ) 30% increase in the size of the economy meaning you'd gain 250-300 extra billion, 5% of which can go to the economy, estimated 18 billion (at 250 billion growth), which isn't too difficult.


Good job to the current government, they've taken a bankrupt economy into one of the fastest growing economies around the globe in less than three years!!!!

 

[Bilal587]

Rising middle class of PAKISTAN . good

I don't think so !

This figure is still rising comparing to other countries just because of substitute transports not available which are good in condition or fast enough comparing to other countries with time till now

 

[RiazHaq]

I don't think so !

This figure is still rising comparing to other countries just because of substitute transports not available which are good in condition or fast enough comparing to other countries with time till now

Explosion of air travel is an indication that Pakistan is going through what the developed world went through a couple of decades ago with rapid expansion in middle class and deregulation of airline industry.

Air travel offers cheaper, faster and safer option for traveling long distances like Karachi-Lahore (1300 Km), Karachi-Islamabad (1500Km) At the same time, road network has been expanding rapidly and as are the bus services like Daewoo bus service for shorter distances and for those who have more time to travel.

All this is part of the trend in transportation: More efficient private sector (bus and air travel) doing what the public sector (trains) used to do everywhere around the world. Even the freight has moved off the trains to the roads and the skies with the growth of online commerce.

Daewoo alone owns a fleet of 380 buses that serves over 50 cities and 6 million passengers every year. It also employs over 4,000 workers, 12 percent of whom are women, and IFC’s investment will help Daewoo Express create more jobs as it expands its operations.
Niazi Express is another bus service that has a fleet of over 200 buses serving 20+ destinations.

 

[Donatello]

Good, but it is sad that local airlines are absent from the scene. So many routes that could be opened up with smaller regional jets like ATR/Embraer.

 

[RiazHaq]

Good, but it is sad that local airlines are absent from the scene. So many routes that could be opened up with smaller regional jets like ATR/Embraer.

Not completely absent.

There are 3 Pakistani domestic airlines in addition to PIA: Shaheen, AirBlue and Indus. The first two also fly some international routes.

 

[Rank]

LOL no body tell why the growth increase because we don't have TRAIN left in Pakistan. Our so called DemoCrazy governments completely destroyed Railway transport so in "Majboori" people don't have other option for travel Karachi to Lahore or Islamabad to Karachi or Karachi to Peshawar. Its nothing to do with middle class or upper class...

 

[Muhammad Omar]

LOL no body tell why the growth increase because we don't have TRAIN left in Pakistan. Our so called DemoCrazy governments completely destroyed Railway transport so in "Majboori" people don't have other option for travel Karachi to Lahore or Islamabad to Karachi or Karachi to Peshawar. Its nothing to do with middle class or upper class...

actually we do have trains and not 1 or 2 279 engines are now Operational even Freight Trains are running now... It's Not PPP Era.... Do visit Railway Station

 

[Shotgunner51]

Good news!
Other than sea ports, other infrastructures would be built/upgraded along the PAK-CHN Econ Corridor, and that would at least include a new airport at Gwadar.
Keep growing prosperous!

 

[WishLivePak]

actually we do have trains and not 1 or 2 279 engines are now Operational even Freight Trains are running now... It's Not PPP Era.... Do visit Railway Station

hes pti fanboy

even if trains dont work, people wont fly due to cost. they'll take bus instead.

LOL no body tell why the growth increase because we don't have TRAIN left in Pakistan. Our so called DemoCrazy governments completely destroyed Railway transport so in "Majboori" people don't have other option for travel Karachi to Lahore or Islamabad to Karachi or Karachi to Peshawar. Its nothing to do with middle class or upper class...

Stupid logic.

That's like saying, Rickshaws are banned so poor people will start to use taxi cars.

If railway doesn't work, poor people will use bus. They don't magically get money to pay 5x more for airplane ticket compared to railway ticket while still being poor.

 

[Thəorətic Muslim]

Stupid logic.

That's like saying, Rickshaws are banned so poor people will start to use taxi cars.

If railway doesn't work, poor people will use bus. They don't magically get money to pay 5x more for airplane ticket compared to railway ticket while still being poor.

Or they just don't travel, like they used to.

 

[WishLivePak]

Or they just don't travel, like they used to.

And then why are more people flying, if the poor refuse to fly?

More people are flying because more people can now afford to fly. If you haven't read the news, Pakistan has a bigger middle class now than before.

 

[Thəorətic Muslim]

And then why are more people flying, if the poor refuse to fly?

More people are flying because more people can now afford to fly.

The stats only show more air travel passengers.

Not who how many times each one passenger is counted because he/she is travelling more.