Airbus A320 Price In Pakistan Rupees
Calfu Baransky
Omer: "It may be bcz of geography and kind of population density. I shuttle btw Faisalabad and Peshawar and there is no flight in btw bcz no demand of it."
Pakistan's 3.5% vs India's 8% population flying may well be partly the physical size of 2 countries accounting for some of difference between India & Pakistan. But I do think the bigger reason for it is Pakistan's domestic air fares being 3X higher than India's for same distance
Additionally, India has many rail corridors throughout tier 1 and tier 2 cities. For example, Shatbdi Express from Ahmedabad to Mumbai, 500km is about 6 hours and very comfortable hassle free in business. I learned that many locals especially families use these corridors because it is cheaper for families than air travel.
-Andy Davidsen
" But I do think the bigger reason for it is Pakistan's domestic air fares being 3X higher than India's for same distance"
That is also true for price of car , motorcycle, prescription drugs and practically every middle class item, except may be home rents etc. It is due to economies of scale and the sad part is that it is self full-filling.
India's Civilian Aviation Market Fiscal Year 2017 was 242 million of which 54 million is international. Non transit passengers flying to Nepal and Sri Lanka are classified as domestic.
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India tried to sell its national airline. It got zero bids
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India has failed to find a buyer for its ailing national airline.
Selling Air India was one of the government's economic priorities for this year, and the failure of the auction will dampen hopes that it could privatize other state-owned companies.
Bidding for the national carrier closed Thursday without a single prospective buyer coming forward.
"As informed by the transaction adviser, no response has been received for the expression of interest floated for the strategic disinvestment of Air India," the Indian Ministry of Civil Aviation said on its official Twitter account.
The government put Air India on the auction block last year, and was offering bidders the chance to buy 76%. It wants to scale back taxpayer support for an airline that has lost money for years.
The auction deadline had already been extended in the hope that a buyer may come forward. The future of the indebted carrier is now very uncertain.
"Further course of action will be decided appropriately," the ministry said in its tweet.
Air India declined to comment, referring the matter to the ministry. Aviation ministry officials did not respond to requests for comment.
Despite its losses, and growing competition from budget carriers such as SpiceJet and IndiGo, Air India is still a major player in an aviation market that is projected to be the world's third biggest by 2026.
#India said on Tuesday it was working on a relief package for its #airline industry, which is forecast to lose up to $1.9 billion this financial year due to rising costs and low fares. #Aviation -plans-relief-package-for-airlines-as-forecast-losses-mount-713341.htm
Two of the biggest and oldest carriers, Jet Airways and state-owned Air India, are struggling to stem losses in the world's fastest-growing domestic aviation market, where competition is intense and fuel taxes are high.
Rajiv Nayan Choubey, the top civil aviation bureaucrat, said that help to cut airline costs was on the way along with a planned $120 million capital injection for Air India, according to Reuters affiliate NewsRise.
Choubey, who was speaking on the sidelines of the International Aviation Summit in New Delhi, did not give details of the planned relief package for the industry.
As well as high fuel taxes, Indian airlines are hit by a goods and services tax on maintenance operations that makes domestic work uncompetitive, consulting firm CAPA India said in a report on Monday.
It forecast an industry loss of up to $1.9 billion in the financial year ending March 31, up from a January estimate of a loss of $430 million to $460 million, the difference fuelled largely by a weakening rupee and a rise in oil prices.
CAPA estimated that India's airlines, including Air India, need an additional $3 billion of capital in the near term to shore up their balance sheets.
Choubey said the government would offer Air India state-guaranteed borrowing worth 21 billion rupees ($294 million), along with an equity infusion of 8.6 billion rupees.
"If we do not support Air India, there may be a value erosion," NewsRise quoted Choubey as saying.
In June, the government said it had been unable to attract bidders for a 76 percent stake in the airline.
Cheap Market
Indian airlines, which have ordered hundreds of new Airbus SE and Boeing Co jets, have struggled to stay profitable despite filling nearly 90 percent of seats as domestic passenger numbers have more than doubled over the past four years.
Cut-throat competition has made India one of the world's cheapest domestic airline markets and deals such as $50 one-way tickets on the two-hour flight from Mumbai to Delhi are easy to find.
"While it is easy to find Indian passengers who want to fly, it's very difficult for airlines to make money," said Alexandre de Juniac, director general of the International Air Transport Association.
Jet Airways last month reported a quarterly loss of 13.23 billion rupees, saying it aimed to cut costs, inject capital and monetise its frequent flyer programme.
In July, budget carrier IndiGo, the country's largest airline, reported its lowest quarterly profit in three years, with earnings down 97 percent.
Infrastructure
The airlines' woes notwithstanding, India has big plans to improve air connectivity as its economy continues to enjoy fast growth, lifting annual air trips to 1 billion in the next 15-20 years, around five times current levels.
The government also wants to build 100 new airports over the next 10-15 years at a cost of about $60 billion, Civil Aviation Minister Suresh Prabhu told the conference on Tuesday. India currently has around 130 airports.
Issues such as land acquisition, however, often delay construction and expansion of airports - and other projects - in India.
The domestic airport in Mumbai, for example, is struggling to keep pace with surging footfalls, and a second airport has yet to be completed despite years in the planning.
Pakistan has the world's 5th largest diaspora. Air traffic in/from/to Pakistan is growing rapidly with over half a million more Pakistanis going to work overseas each year. -half-million-pakistanis-migrating.html
Pakistan plans to privatise its loss-making national carrier Pakistan International Airlines (PIAa.PSX), the government said on Monday, as the country also seeks to outsource its airport operations in line with an IMF deal.
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The privatisation decision was taken at a meeting of the Cabinet Committee of Privatisation chaired by Finance Minister Ishaq Dar.
The committee "after deliberation decided to include Pakistan International Airlines Co. Ltd in the list of active privatisation projects of the ongoing privatisation programme, following an amendment in the law by the Parliament," a finance ministry statement said.
The committee also backed the hiring of a financial adviser to process the transaction of Roosevelt Hotel, New York, an asset of the PIAInvestment Limited, it added.
Pakistan hopes to resume PIA flights to Britain in the next three months after services were suspended following a fake pilot scandal.
The PIA flights to Europe and the UK have been suspended since 2020 after the European Union's Aviation Safety Agency revoked the national carrier's authorisation to fly to the bloc following the pilot licence scandal.
The privatisation of a state-owned enterprise, the PIA, which has accumulated hundreds of billions of rupee in losses and arrears, comes after Pakistan agreed to fiscal discipline plans with the International Monetary Fund.
Pakistan secured a $3 billion IMF bailout in June.
Reporting by Asif Shahzad in Islamabad and Baranjot Kaur in Bengaluru Editing by David Goodman, Mark Potter and Alistair Bell