Private airlines in trouble !!

[PK777]

Private airlines in trouble

IQBAL MIRZA

KARACHI: Private airlines are in trouble, and at least two out of the three may be forced to roll back their operations. The Civil Aviation Authority (CAA) has served a notice on Shaheen Air International (SAI) to improve its operational capabilities within 15 days, or else its operations would be suspended.

The notice was served on August 30. Similar action against Aero Asia is also in hand, sources in the Ministry of Defence told the Business Recorder here on Wednesday.

The two private carriers may thus be forced to wind up their business for want of efficiency and compliance with national and international regulations.

According to details available here both SAI and Aero Asia are upset because their business mode is no more acceptable to regulatory officials in Pakistan. The two airlines in the past had been compromising on national and international regulations, paradoxically with the tacit approval of the regulatory bodies. Ironically, both SAI and Aero Asia were allocated 12 and 4 flights, respectively, per week to the United Kingdom by the CAA on July 27. Shaheen was allocated further three flights per week to the United States. Besides, both were allocated several other international frequencies/routes.

The National Aviation Policy (NAP) requires private airlines to acquire a fleet of at least three aircraft, with reasonable redundancy, to ensure passengers' convenience. Private airlines are also required to register at least one aircraft in Pakistan every year to create job opportunities for local pilots, cabin crews and engineers, to prevent social dumping when a foreign registered aircraft, hired by Pakistani private airline is flown and maintained by foreigners. It also helps prevent safety and security dumping when the state in which the aircraft is registered maintains lower safety and security standards than Pakistan.

Preventing flight of capital from the country and probable legal implications in case of an accident, particularly passenger insurance, are other reasons for discouraging foreign registered aircraft by national airlines.

Both SAI and Aero Asia are operating in Pakistan for the last 13 years. SAI at present has only three aircraft in its fleet, which were brought on Pakistan register recently. Aero Asia has 10 aircraft in its fleet, but not a single plane is registered in Pakistan--due to the generosity of the regulatory authorities of Pakistan who have been bending the laws to permit both SAI and Aero Asia to operate foreign registered aircraft for the last 13 years.

Airline business is a capital-intensive business. It requires over $1 billion for purchasing a fleet of 10 small to medium size jet aircraft. Both these private airlines can not afford to purchase even a single new small aircraft ie A-320, which costs about $60 million. Instead, these airlines operate old and ear-splitting noisy European model aircraft that are already banned in Europe. These aircraft at the time of induction in Pakistan fleet had very little useful life left to operate. Such aircraft are first purchased from the market by some companies in Central Asian Republics or Middle East at a throwaway price and then leased to Pakistan's private airlines.

Things were working fine for these airlines until 'airblue' airline entered the arena. airblue, which is only one year old, purchased modern aircraft of its own and offered fierce competition not only to the private airlines but also to the national carrier, Pakistan International Airlines, in domestic market.

The private airlines have been given deadlines to fall in line with national and international regulations. However, these airlines are not responding to the changed scenario, partly owing to inertia and partly due to lack of professional and financial capacity.

Fleet maintenance conditions of both airlines have gone from bad to worse. Five out of 10 aircraft in the fleet of Aero Asia, and two out of three aircraft in the fleet of SAI usually remain unserviceable. Delay and cancellation of flights has become a norm. Passengers at some airports of Pakistan had reacted angrily threatening to damage CAA property. Taking notice of the miserable situation of the two private airlines and to protect passengers' interests CAA, perforce, had to take on the private airlines.

Interestingly, these airlines owe more than Rs 350 million each to CAA on account of outstanding landing and housing charges. Both SAI and Aero Asia have been showing operating losses for the last 13 years. Its a strange situation. Why would a company go on making losses for 13 years and still would want to stay in business, is a big question mark.


Copyright Business Recorder, 2005

[AirBlue]

OH MY GOD - serious i didnt know that they were in such a bad shape....hope it works out for them some how cuz these figures are scary

[nutsforplanes]

Five out of 10 aircraft in the fleet of Aero Asia and two out of three aircraft in the fleet of SAI usually remain unserviceable.

Is this a fact or journalistic transgression

[PK777]

Well it is something to think about, i think even Amaad touched on this subject a while ago.

Look after 13 years of service, they have yet to even order or even take on board a new generation aircraft. They are running decades old aircrafts that are now going to be banned in UAE and already in UK. Look at the indian market, many airlines there have been operating approx in the same time period and now after working hard to become a leading carrier in India have now taken been granted rights to Uk and using A343 !!

[AirBlue]

Five out of 10 aircraft in the fleet of Aero Asia and two out of three aircraft in the fleet of SAI usually remain unserviceable.

Is this a fact or journalistic transgression

I can assure that the Aero Asia ones are parked:

http://myaviation.net/search/photo_sear ... d=00437237

You can see the three aircrafts in this pic with a PIA A300

[nutsforplanes]

AirBlue

I know these ROMBAC 1-11's have been out of service for a while. I see them everytime I fly out of Karachi. Which is twice a month.
What the article implies is that the a/c in-service are grounded because of lack of maintenance.

[AirBlue]

oh ok......sorry about the miss communication....well if there are some at KHE then there must be some......one is sumtimes at LHE....

[CoyBoy]

Shaheen should be allowed to stay since they seem to be making an effort to change.

Glad to see some one else refer to the aircraft as ROMBAC-111's, they are BAC's built in Romania therefore the designation, I was surprised to see Tarom operate the type to Karachi once during the 80's when they flew here, besides the Tu-154 and IL-62.

[nutsforplanes]

Glad to see some one else refer to the aircraft as ROMBAC-111's

Thanks for the compliment Coyboy

[Abbas Ali]

Glad to see some one else refer to the aircraft as ROMBAC-111's

Thanks for the compliment Coyboy

Yes, that's the correct designation of Aero Asia 1-11s. Aero Asia had at least four One Elevens registered in Pakistan.

Here's list of Aero Asia One Elevens with Pakistani registrations:

AP-BFC
AP-BFD
AP-BFE
&
AP-BFF


AP-BFD, AP-BFE & AP-BFF have been sitting derelict at Karachi Airport in-front of Ispahani hangar since circa 2002.

The airline's fourth Pakistani registered One Eleven (AP-BFC) was seen stored at Bucharest - Henri Coanda Airport, Romania, in year 2004. Following is link to photo showing AP-BFC sitting at Bucharest Airport.

AP-BFC Photo Link: http://www.airliners.net/open.file/0635535/M/

[Adnaan786]

Is it true that all the BAC-111s were grounded because they no longer complied with noise regulations??

[Moin]

There was a time when Tarom was flying 707's to KHI. I remember a friend of mine once flew to LHR from KHI on Tarom sometime in the 90's and regretted it ever since.

[Abbas Ali]

Is it true that all the BAC-111s were grounded because they no longer complied with noise regulations??

Aero Asia One Elevens were acquired from Romanian Airline Tarom and Tarom's pilots were flying Aero Asia's One Elevens. Tarom withdrew One Elevens from its own fleet somewhere between 1999 and 2000 and after that I think Aero Asia found it hard to keep its One Elevens flying. I think this was the reason behind grounding of these aircrafts.

A Boeing 707 was also leased by Aero Asia in its early years from Romanian Airline Jaro. I found its photo at a website.


Aero Asia Boeing 707 at Sharjah Airport.

Source: http://www.guenter-schuetze.de/

[Abbas Ali]

Both SAI and Aero Asia are operating in Pakistan for the last 13 years. SAI at present has only three aircraft in its fleet, which were brought on Pakistan register recently. Aero Asia has 10 aircraft in its fleet, but not a single plane is registered in Pakistan--due to the generosity of the regulatory authorities of Pakistan who have been bending the laws to permit both SAI and Aero Asia to operate foreign registered aircraft for the last 13 years.

Finally an Aero Asia Boeing 737-275 with Pakistani registration AP-BHU seen in Dubai on January 10, 2006.

Link to photo: http://planepictures.net/netshow.php?id=433057

[atmalik]

Is it true that all the BAC-111s were grounded because they no longer complied with noise regulations??

Yes I believe i saw that in one or the other news broadcasts here some times back. because of the new noise regulations in effect in many parts of the world those aircrafts are no longer flying. I believe almost all airlines that fly into major European and or US airports are not allowed to fly those aircrafts. Im not sure if there are any other airlines out there that are still flying those ac's.