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New aviation policy likely to be approved in March

Draft of ‘fair sky policy’ prepared; it will be presented in cabinet

Tufail Ahmed February 27, 2019

PIA and private Pakistani carriers have been lobbying for a long time to create more awareness of the impact the open sky policy has had on them. PHOTO: FILE

KARACHI: The federal government has decided to abandon its open sky policy in favour of a ‘fair sky policy’ in an effort to help domestic airlines avoid further loss of market share to foreign competitors.

A formal announcement is expected before March 23, sources said. The open sky policy, introduced in 2012, allowed a number of foreign airlines to add Pakistani routes.

Due to the policy, different airlines of foreign countries got an edge over Pakistani air carriers and the country’s finances got a hit. According to the open sky policy, any foreign airlines that fulfil some basic requirements can operate in Pakistan. This made it easier for Qatar Airways, Etihad, Emirates, SriLankan Airlines, Thai Airways and numerous other airlines to start or expand operations in the country.

CAA to send new aviation policy to cabinet next month

The policy delivered a substantial blow to domestic airlines, which were less competitive. The federal government’s draft for the new fair sky policy has been prepared, which will be presented in the next federal cabinet meeting for approval.

It has been decided in the new policy that a greater part of the country’s aviation industry will be kept in the country. According to the proposed new policy, remitting the country’s foreign exchange abroad will also be discouraged.

Aviation minister calls for attracting more airlines

Aviation Division officials have briefed Prime Minister Imran Khan in detail on the new policy while Pakistan International Airlines (PIA) and private Pakistani carriers have also been lobbying to create more awareness of the impact the open sky policy has had on them.

Sources said the previous government’s promotion of the open sky policy put domestic airlines at a disadvantage. One private airline even had to cease its operations while the condition of other private Pakistani airlines is also subpar. PIA was also severely affected, with many international routes in the US, Europe, and Asia shut down and others haemorrhaging money.

Published in The Express Tribune, February 27^th, 2019.

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