Islamabad: Pakistan International Airlines (PIA) is leasing out its slots at London Heathrow Airport (LHR) to other carriers due to being blocked by the UK Civil Aviation Authority (CAA). Although flights will remain banned this summer, the airline hopes that service to the UK will return.
Although not actively flying to London, PIA's strategy of leasing its slots allows the airline to continue to hold them. However, LHR has reportedly been aiming for PIA to lose its landing rights.
According to ch-aviation.com, PIA has given up six weekly slot pairs for six months to Vietnam Airlines from April 1st to October of this year. Kuwait Airways will pick up PIA's ten weekly slot pairs from March 26th to October 22nd. In 2020, the CAA banned PIA after a scandal involving the carrier's pilots and the validity of their licenses.
LHR makes slots available to airlines as long as they are constantly used. Any carrier that holds a slot at the airport must use them at least 70% of the time. With PIA leasing out the slots it holds to other airlines that will use them, the carrier still complies with the terms of its slot contract. Still, despite not controlling slot assignments, the airport has been pushing for PIA to lose its slots for some time, according to ch-aviation.com.
Islamabad airport to be 'outsourced'
Meanwhile, the Islamabad airport would be outsourced for 15 years to improve its 'operational activities', Pakistan Minister for Aviation, Khawaja Saad Rafique said in the National Assembly.
The Minister, however, claimed that the move does not equate to privatisation, instead, "it aims to bring in proficient operators to enhance airport operations." He added that open competitive bidding will be guaranteed, giving the best bidder the chance to run the airport. He also emphasized that the process would be profit-oriented, eventually helping the national exchequer.
He said, "The International Finance Corporation will act as the consultant, and 12 to 13 companies have already expressed interest in taking part in the bidding process." Additionally, he gave his word that the procedure would be open and follow all laws and standards. However, the aviation minister said that the runway and navigation operations would not be included in the outsourcing process.