Having secured additional rights of operations from the Pakistani government, Dubai-based international airline, Emirates, is all set to deprive the domestic carriers, including Pakistan International Airlines, Shaheen Airlines and Air Blue, of their share in the industry.
Emirates, which started its operations in March 1985 after getting two planes from Pakistan International Airlines (PIA), now operates in 78 countries with 3,300 flights per week.
Recently, the Civil Aviation Authority (CAA) has given it additional rights to operate in Quetta, Panjgur, Turbat and Gwadar, diverting the local passengers from the national carriers to Emirates for direct flights to Dubai and other countries of the world.
“This is a big loss to the Pakistani airlines including Shaheen and PIA as the passengers of these cities were using services of national carriers. Three American airlines are fighting against Emirates’ operations in USA, but the Pakistani government was giving more and more rights to Emirates. This is not fair,” said a PIA official.
“On the other hand, the government has been trying to privatise PIA for the last several years. Is the government trying to sell off the country to foreigners or what? How are the domestic stakeholders supposed to flourish if the government keeps on facilitating international companies?” he questioned.
According to CAA, on June 5, 2015, Bilateral Air Services Agreement talks between Pakistan and United Arab Emirates were held in Islamabad. The talks were held in a friendly and cordial atmosphere regarding all outstanding issues.
Landmark changes in the new agreement include opening up four airports of Balochistan; Quetta, Panjgur, Turbat, and Gwadar, to five airlines of UAE for unlimited operations, a CAA official said, adding that this will facilitate the citizens of these districts to fly abroad directly from their hometowns.
However, the CAA official said that traffic rights to the airlines of UAE for Lahore, Islamabad and Peshawar have been frozen at the current level for the time being due to infrastructural constraints at these airports. For Karachi, the open skies arrangements between Dubai and Karachi concluded in 1998 remains intact.
“Pakistani airlines, on the other hand, will enjoy unlimited traffic rights from all airports of Pakistan to all airports of UAE. Our airlines would also be free to operate beyond UAE to any other country of the world,” he added.
“The additional services to Karachi and the introduction of Multan to our network will position Pakistan as Emirates’ fourth most highly served country worldwide with 80 return flights a week operating between Dubai and Pakistan,” said West Asia and Indian Ocean Commercial Operations Senior Vice President Ahmed Khoory.
Moreover, the three big US airlines – Delta Air Lines, United Continental Holdings and American Airlines Group – alleged that Emirates, Etihad, and Qatar airlines received more than $42 billion in “unfair subsidies” from the Gulf government. As a result, the Gulf carriers are able to take the US airlines’ market by offering cheap flight fares, which does not make economic sense.
However, the three Gulf airlines completely denied all the allegations. The US airlines also requested the United States government to review the Open Skies agreement, through which Gulf carriers operate in US.
Emirates President Tim Clark told reports on the sidelines of an International Air Transport Authority (IATA) meeting that the airline will submit a detailed report to the US government in response to US airlines’ accusation that it was one of the carriers receiving unfair subsidies from the Gulf government. Earlier last week, Etihad also submitted a 60-page report to the US government to counter the US airlines’ allegation.