SHAHEEN Air, a private carrier, was closed down about eight months ago due to a non-payment of dues to the Federal Board of Revenue, the Civil Aviation Authority, Pakistan State Oil and to others. More than 5,000 personnel were rendered jobless.

Today, a similar situation has arisen with Jet Airways, a private carrier, in India. Jet Airways owes a colossal $1 billion while more than two-thirds of its fleet of about 116 aircrafts is grounded.

There are marked similarities between these two situations. First, both airlines were big private carriers in their respective countries. Second, each had a vast network of international airway flights covering the Gulf, the Far East, China and Europe while Jet was also travelling transatlantic.

But this is where the similarity ends. Shaheen Air went into a loss due to domestic, international factors and some mismanagement as well. There was no response from the government, like granting a short-term tax holiday, extending help by giving bank guarantees, etc. The government, instead, went out of its way to lock the airline down, thus damaging Pakistan’s airline industry.

In sharp contrast, when Jet Airways came close to bankruptcy, the Indian government stepped in and went out of its way to prevent a collapse. The government not only facilitated but ordered banks to extend loans and have equity in Jet Airways. It should be noted that the government of Pakistan is extending grants worth billions to the national carrier. They wrote off billions owed by Pakistan International Airlines to PSO, CAA and FBR.

This flawed policy will only cause further damage to the dying airline industry in Pakistan.

Qasim Khan

Karachi

Published in Dawn, April 1st, 2019