Hajj operations: Private airlines eye larger share

Nasair and Shaheen Air entering market dominated by PIA.

KARACHI:

A special permission granted to private airlines Shaheen Air and Nasair to operate Hajj flights this year is expected to boost their business and increase competition in the market, which has so far been dominated by Pakistan International Airlines (PIA), according to industry officials.

“Although PIA and Saudi Arabian Airlines are doing a strong business, the special permission to Shaheen Air and Nasair is a good chance for both to grab a big share in this market,” said Travel Agents Association of Pakistan Chairman Muhammad Yahya Polani.

“The number of pilgrims from Pakistan is increasing as 180,000 people are expected to perform Hajj this year compared to last year’s 160,000,” Polani said.

Every country has a Hajj quota of 0.1 per cent of the population, he said.

The Ministry of Defence, on the request of the Saudi government, allowed Nasair, a low-cost Saudi private airline, to operate flights during Hajj season this year. In return, the Saudi government allowed Shaheen Air, a Pakistani private airline, to operate Hajj flights, an official of the defence ministry said.

Nasair and Shaheen Air have started operating Hajj flights from Peshawar and Faisalabad. Shaheen Air expects to carry more than 10,000 passengers while Nasair is expected to lift over 4,000 passengers.

PIA has more than 60% share in Hajj operations, followed by Saudi Airlines with around 20% share. The rest of the market is divided among Nasair, Shaheen Air, Qatar Airways, Etihad Airways, Emirates, Oman Air, Air Arabia and others.

PIA is currently running at full capacity while Saudi Airlines is concentrating more on international routes this season.

Average two-way fare of PIA and Saudi Airlines is in the range of Rs76,000 to Rs108,000, while Shaheen Air fares are from Rs88,000 to Rs104,000. Nasair, if booking made at least a month in advance, will cost around Rs25,000 to Rs30,000, a third of the aforementioned prices.

Marhaba Aviation Services Private Limited CEO Maqsood A Latifi, who oversees Nasair operations in Pakistan, said that he is hopeful of a good response in Hajj operations this year.

Speaking to The Express Tribune, PIA spokesperson Sultan Hasan said that PIA has enough aircraft to lift all Hajj pilgrims. This season, PIA is expected to accommodate 109,000 pilgrims through 305 flights, with 10 flights a day.

With a growing Hajj market, PIA has a wide-open field to increase its market share, aviation industry officials said. But with an average fleet age of 22 years, PIA has to improve its efficiency to keep up with growing competition in domestic and international markets, they added.

Published in The Express Tribune, October 6^th, 2011.