"Different ways are used to put PIA at a disadvantage. Enough is enough! Now something has to be done".
Anyone familiar with Pakistan International Airlines would not be surprised to see such slogans being clamoured by its Council of Employees as protests like these have become a norm at PIA of late.
But this time it was different; these employees were not protesting for a wage hike, grounding of crew staff, harassment of women or any other regular issue.
They were actually protesting against a new entrant in Pakistans airline industry, which has given sleepless nights to its employees, who gathered on Monday to protest against the PIA management.
Flydubai, a sister concern of Emirates airlines, has now started flight operations for Karachi-Dubai-Karachi. This low cost airline has created panic amongst PIA employees, as they fear more business losses ahead, considering that Dubai is one of the more frequent destinations flown by PIA.
Flydubai plans to charge just Rs 15,600 for a return ticket to Dubai from Karachi, making local airlines a costlier option for travellers.
Rates of smaller private airlines in Pakistan, such as Airblue, are about 17-20 percent more expensive than Flydubai, for the same route. And, the case for the national flag carrier is no different, as PIA charges 25-30 percent higher for the same trip in economy class.
It needs no rocket science to foresee that Flydubai will try to exploit the large potential market and to operate at 100 percent load factor, a luxury that is not available to other domestic players.
Low cost airlines are fast growing around the world and have attained considerable market shares; it only makes sense as people still look for any opportunity to save money.
The fact that a trip to Dubai from Karachi is a short one, may also lead to more traffic as people might become more willing to forgo a few luxuries for the money Flydubai can save them.
"No one really feels hungry in a two-hour flight.... Flydubai is the cheapest option available for Pakistani passengers, and it will surely be a huge success", said Yahya Polani, Vice Chairman Travel Association Pakistan, who says at least 50,000 people travel to Dubai from Karachi every month.
With one daily flight on the route, Flydubai could capture at least 12 percent of market share on Karachi-Dubai itinerary - which can only increase with time.
Whether or not Flydubais advent will cause a price war among domestic players is yet to be seen, but most likely PIA, the biggest player will not be a part of such a tournament; not at least in the short term.
"PIA cannot afford to indulge in any price war. We just have to abide by whatever decisions the government makes...we cannot raise the airfare on our own...we cannot help but suffer from the governments open skies policy", a senior PIA official told BR Research on the condition of anonymity.
But even if the government wanted to go back on its open skies policy, it might not do so, given the hawkish stance of the Competition Commission Pakistan.
Applauding the governments open skies policy, the CCP issued a press statement yesterday cautioning that preventing new airlines from commencing operations will not only reduce the choice available to Pakistani passengers, but will also discourage the national carrier from improving its services and employing its resources efficiently.
Though smaller airlines, like Airblue will likely react in order to maintain their load factors and to compete with the new entrant, for PIA though, its time to wake up and smell the coffee.
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THE FLYDUBAI DISCOUNT
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Emirates PIA Airblue Flydubai
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Karachi - Dubai (PKR) 15800 11380 9800 8600
Dubai - Karachi (AED) 525 400 370 300
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Source(s): respective airlines websites