PHOTO: PIA
Last year, domestic and international airlines operating to/from multiple airports under the open skies policy in Pakistan have transported around 20 million passengers, equivalent to about 10% of the total population.
“Number of air travellers has increased 40% in the last 5 years to 20 million people in Pakistan,” Standard Chartered Pakistan Chief Executive Officer Shahzad Dada said at the launch of the Emirates Standard Chartered Credit Card here on Monday.
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The growth in air travellers is very much in line with the growing per capita income to around $1,700, he said.
“Air travelling has become more affordable [in Pakistan],” Emirates Vice President for Pakistan Jabr Al-Azeeby said at the event.
According to the Economic Survey of Pakistan 2016-17, the per capita income has increased 6.4% to $1,629 from $1,531 in the previous fiscal year 2016.
According to Euromonitor International, Pakistan has become home to a growing middle income group. The size of the middle class in Pakistan is estimated to surpass that of the UK and Italy during 2016-2021, it said.
The growth of the middle class may be gauged from a growing retail market, which the Euromonitor predicts would expand 8.2% per annum during 2016-21 as disposable income has doubled since 2010.
Dada said around 32% of his bank’s clients are air travel savvy.
One other reason for the increase in air travellers, according to civil aviation experts, is the significant drop in jet fuel prices and low inflation in recent years.
The drop in fuel price and inflation has helped airlines to at least maintain their fares.
Pakistan International Airlines (PIA) last year reported issuing an additional 1 million tickets during the 12-month period.
“Pakistan’s aviation industry is increasing at an average growth rate of 8-10% per annum, which is more than double the 3.5-4% growth rate globally,” PIA spokesman Mashood Tajwar told The Express Tribune recently.
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The growth is evident from the fact that Pakistan saw the addition of one local airline last year, while other local air carriers have kept on adding new jets to their fleet.
According to sources at the Pakistan Civil Aviation Authority, some new players have also applied for acquiring rights to set up airlines in the country.
According to experts, air travelling would grow notably in Pakistan with formal completion of the infrastructure and power projects worth billions of dollars under the China-Pakistan Economic Corridor.
Published in The Express Tribune, November 21st, 2017.
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