KARACHI: K2 Airways, Pakistan’s first private sector air cargo, is going to commence its services by December 1, 2024.
The announcement marks a major milestone in the nation’s air freight industry, which has been predominantly served by foreign carriers.
K2 Airways CEO Tariq Raja confirmed that all necessary approvals from the Pakistan Civil Aviation Authority (PCAA) have been secured. The venture represents an initial Foreign Direct Investment (FDI) of US$5 million and will operate Boeing 737 aircraft with a 20 ton cargo capacity.
“K2 Airways will pioneer private sector air cargo operations with Boeing 737 aircraft in Pakistan,” Raja told Business Recorder. The UAE-based Pakistani businessman highlighted the significant market opportunity, noting that Middle Eastern carriers are currently transporting approximately 700 tons of cargo daily from various Pakistani locations.
K2 Airways aims to compete effectively with foreign carriers by offering 15-20 percent lower rates, leveraging its local operational advantages. “As a local operator, our operational costs will significantly be lower as compared to the Middle Eastern cargo carriers,” Raja explained.
As per aviation rules, K2 Airways will go into a three-month domestic operations phase hence it will initially commence operations in three major cities - Karachi, Lahore, and Islamabad.
Following this period, K2 Airways plans to expand its services to GCC countries. The company has also outlined ambitious growth plans, targeting a fleet expansion to four aircraft within three years.
PCAA Director General Nadir Shafi Dar has confirmed the regulatory body’s approval, stating that all necessary processes have been completed for K2 Airways to commence operations next month.
Presently, Pakistan’s air cargo sector is served primarily by foreign operators, with only one local chartered cargo service operating under the country’s forces. K2 Airways entry into the market represents a significant step towards developing the country’s private aviation sector and enhancing its cargo handling capabilities.
Copyright Business Recorder, 2024
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