Chartered air services take off
Iconair, which operated its first chartered flight between Karachi and Sukkur on September 25, is a joint venture of Saudi and Pakistani businessmen, a company official said.
“There are many segments in the market that we would like to cater,” said General Manager Commercial Arifuddin Qadri. “The demand for chartered aircraft has gone up in recent years. We can even give flying tours if required.”
It is using two Cessna aircraft – a nine-seat 402C and a four-seat 183. The company believes using propeller aircraft instead of jets gives it some advantage in terms of cost.
Iconair has permission to take passengers and cargo both. But initially its focus seems to be on multinationals and large local corporations like the rest of the chartered service providers.
Around two dozen firms have been issued general aviation licences, according to the Civil Aviation Authority (CAA). But many of them have become dormant. The market is dominated by big players including Princely Jets and Schon Air.
Despite repeated attempts on part of the CAA, chartered air service providers have not been able to make major contributions to the growth of aviation sector.
In 2012, a year after a deadly accident killed 21 people, JS Air – once reputed to have been a leading airline offering chartered services – decided to shut down its operations after several of its customers were scared away towards its competitors.
The airline was launched in 2005 with three leased Bombardier Beach 1900 aircraft and quickly built up its market share.
Another reason for the airline’s demise was the declining number of petroleum geologists travelling to remote oil and gas fields, JS Air had said at the time.
To date, energy sector companies form bulk of clientele, which include such names as Pakistan Petroleum, Dutch petroleum services giant Schlumberger, and European oil firms ENI and OMV.
Industry experts say that all chartered services are dependent on the oil and gas companies.
Published in The Express Tribune, September 27th, 2014.
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Taxation: Intcome tax, treatment of charter travel. Woutreated as Expense. ld audit accept as bill of charter services . Admissible expense. Would tax yreform incorporate thifs suggestion.,