1/5. PIA/Aviation Sector: Like many sectors, aviation is also marred by rent seeking and lack of clarity in developing optimal state-market interactions. Aviation policy is totally hijacked by CAA (regulator) and PIA (service provider). CAA is itself a service provider as well.
2/5. I hv been looking into affairs of PIA for the last 10 years. My considered opinion is PIA shd be disbanded/privatized.We need 4-5 private airlines of Pakistan to ensure competition and affordability of domestic air travel. Dsnt matter who you bring as CEO PIA cant b revived.
3/5. We hold bureaucracy responsible for many problems. In the case of PIA, politicians hv created the mess.They hv vested interests in PIA that they neither let it operate nor they let it privatize.CAA she only function as regulator. All services shd b by the private sector.
4/5. FBR still considers air travel as a luxury and impose FED. No rationale of having FED on air travel. Pak needs to encourage domestic air travel for mobility and many other benifits of connectivity. Compstitition, regulations and reduced taxes wl create an aviation market.
5/5. M/o Aviation needs to play a proactive policy role in this sector. Unfortunately our ministries dnt do policy and get involved in operations. We need an open dialogue on aviation policy issues: competition, regulations, connectivity, tax extortions and professionalism.