Aviaation Issue

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President & Chief Editor:

Prof. S.B. Hassan Associate Editor:

Mrs. Atia Hassan Assistant Editors:

Syed Farhan & Syed Azfar Hussain Editorial Advisors:

Naila Salman & Dr. S.M. Salman Advisor Planning & Development:

Dr. Zeeshan Khalid General Manager:

Contents

Shujaat Hussain Rizvi

An International Economic Journal Published from Pakistan

Vice President & COO:

Salman Hassan

45th year of regular & uninterrupted publication

Creative Incharge:

M. Rizwan Rathore Photographers:

H. Haji Muhammad (Sammy) Abdul Samad Qadri

EDITORIAL & COMMENTS Role of Tourism Sector in the revival of Economy ........................................................................ 02 Improvement in the Current Account Balance ............................................................................. 03 Implications of the Monetary ......................................................................................................

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Opinion: Pakistan - the way forward............................................................................................................

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Pakistan s Aviation & Travel Industry - Synergy & Growth: I&M Conference Pakistan s Aviation and Travel Industry ............................................................. 07 Managing an aviation disaster ...................................................................................................... 11a An introduction to aviation safety ................................................................................................ 11c Travel & Tourism Economic Impact 2011 ..................................................................................... 11d Messages....................................................................................................................................... 11o

Investment & Marketing P.O. Box No. 7578 EXECUTIVE CONTACT Ph: (92-21) 35394424 - 35382411 Fax: (92-21) 35394423 Cell: 0300-8236579 Email: iandm.pk@gmail.com URL: www.iandm.pk

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Shaheed Airport Services ..............................................................................................................

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Published by S.B. Hassan and printed at Sohail Press, Jai Ram St., Off. Outram Rd., Pakistan Chowk, Karachi-2, Ph: 214635

Birth of a nation, birth of an airline...............................................................................................

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June - 2011

PIA Shaheed Benazir Bhutto Flight Academy (SBBFA) inaugurated............................................... 12

Salient features of the Hajj Policy 2011......................................................................................... 20 I&M Conference preperation: Pakistan s Aviation and Travel Industry ......................................... 21 Ambassadors to Pakistan ..............................................................................................................

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The views and opinions expressed in this journal are not necessarily the views and opinions of the Editor.

Price: .................................. 250.00 Annual Subscription...........3000.00 Issue # 566


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There are many countries in the world like Switzerland, Holland, Sri Lanka and Maldives whose main source of income based on tourism industry but unfortunately Pakistan, despite having rich culture, heritage and tradition and blessed by spectacular mountains, lush green forests, glaciers, lakes, rivers, ocean, ancient monuments, valleys. fertile plains and all natural gifts that can make a country a hub for tourists, could not attract foreign and local tourists on the back of insurgency across the country, bomb explosions throughout country, travel advisories by foreign governments asking their respective citizens to avoid visiting Pakistan, unfavourable political conditions, lack of proper infrastructure and last but not the least ever rising inflation. Before September 11th 2011, significant number of tourists used to visit Pakistan after visiting Sri Lanka, Nepal and India. According to Ministry of Tourism, in 2001, before the 9/11 attacks, 1,400 foreigners headed to northern area for trekking. However, in 2002 only 99 mountaineers ventured to Pakistan. Afterwards, heightened security fears and travel advisories issued by foreign governments asking their citizens to avoid visiting Pakistan proved to be a bang blow for local tourism and resultantly foreign tourists arrival in Northern Areas became almost zero. The deteriorated law and order situation in the country now has reached such a point that even local people were displacing to other safe areas where they could earn their livelihood. Stuck in conflict between Afghanistan to the West, Kashmir to its northeast and bleeding with violent Islamic militancy on its home front, Pakistan has now become a tourist-hungry country rather it became a tourists hub and a resort for local travelers who can spend a lot of money for watching landscape and scenic beauty of lush green mountains and crystal clear river water flowing. After series of bloody terror attacks by militants has not only kept away the local tourists but also foreign who can spend a lot of money in exploring nature. With the steep down tourism industry in Pakistan, foreign mountaineering expeditions have also been dropped up to zero mark, claimed a leading climber adding that now over one million people who attached with tourism sector and living in the Northern Areas are facing a bleak future. Since their mainstay was tourism so they are living near starvation because of dwindling flow of visitors, he added. Nepal, a land-locked country, has only one big attraction world highest Mount Everest which is a main source of income for the country. Pakistan's wonders are also its mountains as five of the world's highest peaks, over 8,000 meters, all in a 20-kilometer radius, situated in the Northern Areas where three of the world's most fabled mountain ranges meet: the Himalayas, the Karakorams and the Hindu Kush. K-2 mountain in Pakistan is second only to Mount Everest in height in the world. Though Pakistan has had another 120 02

Role of Tourism Sector in the revival of Economy peaks tower over 7,000 meters but still no foreign group has booked climbing mission in the current year because of insurgency and fear of life threat. As a result, now porters, the guides, drivers, hotel owners which attached with these foreign tourists are suffering badly and have almost reached at the brink of their financial collapse. The Northern Area of Pakistan was once considered to be the safest place where crime rate was lowest as compared to the other parts of the country and local couples used to visit to enjoy their honeymoon but, it seems that the whole area has been haunted as neither local nor foreign tourists dare to visit because of fear. The local people, though, supported government stance and fought against militants as they knew well that tourism is their bread and butter but still the circumstances are not favourable for tourism. They are still struggling against insurgency and wanted complete peace and tranquility to come back in the region so that tourism could once more emerge and they could earn their livelihood once again. If Sri Lanka that faced insurgency for three decades can attract global tourists, why not Pakistan which has natural Switzerland in the shape of Swat, Shangrila and Hunza. Although, United States is supporting Pakistan in this regard and USAID has disbursed working capital and rehabilitation cash assistance of $1.158 million under its Malakand Grants Program among 239 hotels and 22 fish farms but still there is a room for government to remove hindrance in attracting tourism. First of all government has to give life assurance to tourists as global tourists think that Pakistan is an unsafe place after the assassination of former Prime Minister Benazir Bhutto and Punjab Governor Salman Taseer. On the other hand, infrastructure in Pakistan is a great cause of tourism industry failure. It is hard fact that there are no proper roads, railway tracks and other transportation services. Tourists find it difficult to visit different places in Pakistan. It is claimed that poor infrastructure is a main hindrance in the way of developed and flourished tourism industry. The Government of Pakistan has to take extraordinary measures for providing relief to tourists if it wants to boost tourism industry in Pakistan. It is quite possible to attract foreign tourists to Northern Areas once again if government shows its interest and will. Only a little bit attention on the part of government can make this country once again a hub of foreign and local tourists and eventually can make it economically sound.n

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The external sector of the country has shown a substantial improvement in the current fiscal year. According to the latest data released by the State Bank, current account balance of the country posted a surplus of $205 million in July-May, 2011 in sharp contrast to a massive deficit of $3.4 billion registered in the corresponding period of last year. Such a turn for the better was largely attributable to a record inflow of home remittances and higher exports during the current year. Aggregate deficit of $13.96 billion incurred on trade, services and income accounts was more than compensated by a huge inflow of $14.26 billion on account of current account transfers, comprising largely remittances sent by overseas Pakistanis. With the overall level of $32.17 billion of imports and $22.78 billion of exports, country's trade deficit shrank to $9.39 billion as compared to $10.21 billion in the same period last year. Services sector and income sector deficits were estimated at $1.73 billion and $2.84 billion, respectively. However, while the overall trend during the current year has been found to be quite satisfactory, current account data of the latest month was not very much encouraging because of a deficit of $457 million in May, 2011 as compared with a surplus of $630 million in the previous month. It can, nonetheless, be safely stated that Pakistan's overall performance in the external sector during FY11 would certainly be much better than the annual plan's original target of current account deficit of 3.4 percent of GDP. A positive turnaround in the current account balance of the country is a very welcome development. With a solid improvement in the current account, the country, unlike in most of the years in the past, would not be forced to borrow from outside sources and add to its foreign exchange liabilities. Also, such a healthy development will obviate the risk of default in the near future, stabilise exchange rate of PKR, and help maintain

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foreign exchange reserves at a comfortable level. It is also apparent that uninterrupted flow of imports facilitated by a favorable outcome in the external sector could go a long way in reviving economy and generating employment opportunities in the country. Besides, the country would now be under less compulsion to negotiate another program with the IMF though its seal of approval would still be needed to keep the foreign investors and donors, especially multilateral financial institutions such as the World Bank and the Asian Development Bank, reasonably satisfied about the soundness of government's economic policies and country's economic prospects. In any case, it would in the country's own interest to continue following a reform agenda in consultation with the IMF because Pakistan is required to pay certain short-term liabilities in the near future and the improvement in the current account balance is not yet well entrenched. In fact, most of the analysts believe that some of the transitory factors have contributed to recent current account improvement. For instance, exports have risen due to an unusual increase in the international prices of our export goods, particularly those of cotton and its products, due to global shortage of cotton. Since the world cotton production is expected to be normal in the coming year (prices are already falling), Pakistan may not be able to sustain previous year's level of receipts from this source. Similarly, home remittances might have jumped due to unrest in North Africa and the Middle East or certain apprehensions in the developed countries and such factors cannot be relied upon to boost the prospects of external sector for an indefinite period. On the other hand, foreign investment has declined sharply in the recent past, hurting the growth prospects of the economy and undermining the prospects of improvement in the external sector on a sustainable basis. International oil prices in the coming months are also uncertain due to a variety of factors. All of this calls for adopting a consistent and cautious approach towards the situation with a view to undertaking appropriate policy measures, if and when needed, to sustain the current improvement in the external sector.n

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The major challenges for economy of Pakistan in recent years, are the macroeconomic imbalances and sluggishness of the economy. On the one hand, the whole burden lies on the shoulders of the vulnerable class in the form of high food and non-food prices and the low level of income. On the other hand, the macroeconomic policies of the government badly ruin the lower class of society. Recently, the economy of Pakistan is facing some serious threats in the form of high fiscal deficit, current account deficit war on terror and food shortages etc. The destruction caused by the floods has been unprecedented. It surrounded the whole nation and created a humanitarian catastrophe in the country. It has badly damaged the agriculture sector of the economy. Millions of standing crops were washed away by the flash floods. Thousands of hectares of arable land were destroyed. Millions of houses were washed away by the floods. In this situation, proper formulation and implementation of economic policies can help to cure these economic ailments. Monetary policy, in this regard, plays a pivotal role in promoting economic growth and price stability. Considering the rising prices in the country, the State Bank of Pakistan (SBP) recently announced a monetary policy by keeping constant its benchmark interest rate with the aim of curbing high inflation prevailing in the economy. Since 2005, SBP has used interest rate as a main weapon in the formulation of monetary policy. The declaration of such a strict policy may lead to serious economic conditions and may have some serious macroeconomic implication for the economy of Pakistan that has a very low growth potential. The growth momentum of the economy is also very sluggish. The policymakers should accept one thing that the sources of inflation in Pakistan are non-monetary rather than monetary. Inflation in Pakistan is largely affected by the expectations and supply-side factors. High fiscal deficit and rise in non-performing loans (NPLs) are the important sources of inflation in recent years. The catastrophic floods have further heightened the inflationary pressure in the country. Furthermore, the reformed GST would play a critical role in increasing prices in the country. The crisis of unemployment has worsened. Millions of people are homeless, jobless and even deprived of the basic

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necessities of life, aggregate demand and output growths are very sluggish. The economy is in dire need of a big push in the form of high investment. However, the increase in interest rate by policymakers will lead to crowding out of private investment. Moreover, high interest rates will further worsen the situation of the fiscal deficit because of high interest payment by the government in the wake of high borrowing from the private sector. On the one side, the SBP is trying to aggravate the liquidity crunch in order to stabilise the prices. On the other side, the circulation of money is expected to increase because of increased borrowing by the government to finance its high expenditures. The next problem the country will face after the announcement of the monetary policy, is the unattended inflation in the wake of high external loans and the surge in international oil prices after the conflict in Libya and other central Asia countries. Data and empirical studies regarding the interest rate, output growth, fiscal deficit and inflation show that the policy rate has a very low contact with inflation in Pakistan. Since 2005 and onwards, there seems to be a positive correlation between the policy rate and the general price level. Moreover, there is also a positive relationship between interest rates and the fiscal deficit. It is due to the fact that high interest rates increases interest payment on government debt that leads to even higher budget deficit. Further, an increase in government spending that results from higher interest rates creates a competition for loans between public and private sectors that in turn crowds out private sector investment and consumption. Debt overhanging is one of the most critical problems faced by Pakistan that is primarily due to higher budget deficits. Recent monetary policies would further worsen the situation. Unless fiscal deficits are not controlled, it would result in mounting government debt. Empirical studies show a negative relationship between high interest rate and real GDP growth rate. Further, high fiscal deficit negatively affects economic growth. In such a situation, when the growth process of the economy is inundated, the burden lies on the shoulders of the government to keep its budget deficit under control. Otherwise, the country may bear the cost of high inflation and low output growth. However, the cutback in fiscal deficit must be due to a reduction in the policy rate by the SBP that in turn, would lessen the interest payment of the government and hence, private investment and GDP growth rates will increase.n

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Pakistan s Aviation & Travel Industry --Synergy & Growth

I&M Conferences:

Pakistan s Aviation and Travel Industry Synergy and Growth In collaboration with the aviation and travel industry of Pakistan, I&M Conferences organized the Pakistan Aviation and Travel Conference, which was held at Marriott Hotel Karachi, on Saturday, August 13, 2011. Participants were greeted at the entrance by cheerful and smiling I&M staff, who welcomed them with an attractive conference souvenir brochure and a Pakistani flag. All guests were impressed by the spectacular stage

backdrop, which showed a PIA aircraft in the skies of Pakistan. The well-designed showed the PIA aircraft approaching a large Pakistan map depicting the rich archaeological, historical, and scenic beauty of Pakistan. Guests were delighted with the hall arrangement , including the colourful panaflex stands placed by many aviation and travel companies. The proceedings began with recitation of Holy Quran and playing of national anthem. This excellent inauguration lifted

the spirits of the participant, and there was a strong spirit of patriotism and pride in the air throughout the proceedings. Conference participants were thrilled to see footage from the PIA Air Safari film, which showed the fabulous mountains of Northern Pakistan. A Special Feature presented by I&M at the conference, which was the perspective of frequent flyers, was appreciated by all the guests. In this special feature, children described their travelling experiences, and their preferences and

I&M Conferences: Pakistan s Aviation & Travel Industry, August 13, 2011 (from l to r) Mrs. Anisa Rehman, PIA; Mr. Salman Hassan, I&M; Syed Azfar Hussain, I&M; Mr. Raheel Ahmed, Airblue; Col Farooq, ASF; Mr. M. Zameer Ahmed, Sonya Southern Travels; Mr. M. Rafiq Khan, Bukhari Travels; Prof. S.B. Hassan, I&M; Mr. Salim Sayani, PIA; Mr. Yahya Polani, Polani Travels; Ms.Naheed Memon, ACE Travels; Mr. Raheem Khan, Jang Media; Mr. Shaheen Premani, Travelport; Mr. Irfan Ahmed, Chutti.pk;Mr. Nasir Waheed, UPS Express; Brig (r) R A Malik, Security 2000; Khawaja Jahanzeb, Zeb Travels; Mr. Salman Javed, Korea Air and Air Cdre. (r) T M Sheikh, SAPS

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth expectations from airlines and airports. Conference guests were delighted to see the cheerful and bright children, valued their feedback. Officials from the following industries attended the conference: Civil Aviation Authority, Foreign Airlines, Domestic Airlines, Ground Handling Services, Air Freight, Travel Agents, Hajj Travel Operators, Ticketing Software Companies, Aviation Fuel Companies, and media professionals. Government officials, diplomats and executives of aviation-allied companies added their perspectives to the conference proceedings. Panel Discussion 1 was on the topic, ' Innovation in Airline and Travel Products.' Mr. Salim Sayani, DMD of PIA, chaired the panel, in which the following panelists expressed their views and perspectives -- Mr. Shaheen Premani, SVP, Travelport; Mr. Irfan Ahmed, CEO, chutti.pk; Mr. Ahsan Akhtar, Country Manager, SITA Pakistan, Mr. Nasir Waheed, CEO, UPS Express. Managing Director of PIA, Mr. Nadeem Yusufzai, communicated his viewpoint: "Today, on the eve of Independence Day , I am delighted to know that Investment & Management (I & M) Conferences is playing its part for the development of tourism in Pakistan by organizing a conference on "Pakistan Aviation & Travel Industry-Growth and Synergy. Pakistan is passing through difficult times of its history. The law & order situation is the major contributor in sluggish growth of Pakistan Aviation & Travel Industry. This conference is being organized at a very important juncture where immense effort is required to portray the soft and positive image. We have taken the initiative by re-launching the Air Safari flights chartered by foreign journalists and diplomats. I believe this conference will serve as

Prof. S.B. Hassan presenting I&M Country Report on the Kingdom of Saudi Arabia to Mr. M. Zamir Ahmad, also seen in the picture Mr. Salim Sayani, PIA and Air Cdre Tanweer M Sheikh (Retd), SAPS. platform for presenting and exchanging ideas on problems, challenges and opportunities faced by aviation, travel, tourism and allied sectors." Speaking on the occasion, PIA Deputy Managing Director Salim Sayani said that despite poor law and order, floods and

Seen in the audience, Ms. Anisa Rahman, GM-PR, PIA; Mr. Salim Sayani, DMD, PIA; Prof. S.B. Hassan; Mr. Irfan Ahmed, Chutti.pk and Mr. Nasir Waheed, UPS

Prof. S.B. Hassan, President & Chief Editor, I&M; Air Cdre Tanweer M Sheikh (Retd), Executive Director, SAPS; Mr. M. Zamir Ahmad, COO, Sonya Travels; Ms. Sarosh Rahim, Executive Director, Sonya Travels with the officials of Sonya Travels 08

other difficulties, PIA achieved double-digit growth in revenue in the last two years. However, he said, the profit margin declined in the same period. "Business persons don't travel in and out of Pakistan anymore," he said. Mr. Sayani said that the number of tourists travelling to Pakistan decreased after the 9/11 attacks. "Out of PIA's seven million passengers, only 100,000 are pure tourists. In 2000, PIA had one million passengers who could be described as tourists.

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth In 2010, the number declined to 100,000," he said. He said that India had a 48 per cent share in the regional tourism industry. He attributed the success of India's tourism industry to its "meticulous" marketing strategy. He added that the Maldives entertained 200 percent more tourists than Pakistan. He discussed the annual arrival of passengers (share of countries in percentage terms) within the region. India has a 48% share in the regional tourism industry whereas Pakistan has 4%, Sri Lanka 7%, Bangladesh 4%, Maldives 8% and Iran 24%. Mr Sayani informed the participants that there was a time when Pakistan ranked among the top 25 tourist destinations in the world. However since 9/11, the ranking has continued to decline for the last 10 years. Also affecting Pakistan have been the natural disasters such as the earthquake and the floods of 2010 and the security situation. Pakistan is the sixth largest country in the world by population but its tourists number less than 100,000. The conference participants, in particular the leading travel agents, appreciated the contributions of Mr. Sayani for the development of Pakistan aviation and travel industry and pledged their support to him in his efforts. Industry officials discussed strategies

Panelist at the conference: Mr. Shaheen Premani, Travelport; Mr. Irfan Ahmed; Mr. Nasir Waheed; Mr. Ahsan Akhter, SITA; Mr. Salim Sayani, PIA and Prof. S.B. Hassan to generate growth in Pakistan's aviation and travel industry. Efforts to boost regional tourism were discussed, and the success stories of Thailand, Sri Lanka, Malaysia, and India were presented as excellent models. Mr. Ahsan Akhtar, CGM, SITA, described the innovations that he saw overseas in his travels, and his effort to introduced those technologies and procedures in Pakistan. Panel Discussion 2 was on the topic, Airline and Airport Safety & Security, and this panel was chaired by Air Cmdr (r) Tanweer M. Sheikh, Executive Director & CEO, SAPS & Shaheen Cargo Intl. Mr. Raheel Ahmed, GM Commercial,

Prof. S.B. Hassan, Mr. Raheel Ahmed, GM Commercial Airblue and Air Cdre Tanweer M Sheikh (Retd)

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Airblue began the second panel discussion with a special presentation, 'Managing An Aviation Disaster.' After his presentation, Brig (r) Rashid Ali Malik, CEO, Security 2000, discussed the topic of Airport Safety and Security. Colonel Farooq, Deputy Director General, ASF described the working of the ASF. GM (Commercial) for Airblue, Mr. Raheel Ahmed said that the families of 63 out of 138 passengers, who died in the Airblue plane crash last year, had received Rs5 million each in compensation. He said that the delay in compensation for the rest of the families was because of legal reasons. "Families of the crash victims are required to produce a certificate of succession to receive compensation," he said. Airblue Flight 202 crashed on July 28, 2010, near Islamabad, killing 138 passengers and six crew members. Mr. Raheel Ahmed said that Airblue had received certificates of succession from 73 families. "It takes three to four weeks for a family to receive the compensation package once it has submitted the certificate of succession," he said. Raheel Ahmed said that Airblue also helped many families with Rs50,000 because they couldn't afford to engage a lawyer to get the certificate of succession from court. Mr. Raheel Ahmed said that immediately after the crash, Airblue had paid 132 families Rs550,000 each as "initial

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Mr. M. Rafiq Khan, Bukhari Travels; Mr. Abdul Rahim Khan, Jang Media; Mr. M. Zamir Ahmad; Mr. Yahya Polani, Polani Travels and Ms. Naheed Memon, ACE Travels. compensation." The rest of the families approached Airblue through their attorneys, he said. "We thought initial compensation was necessary, especially for the families that needed immediate monetary help," he said. He criticized the media for sensationalizing the crash and spreading what he called "conspiracy theories."He said that after 9/11, Americans turned firefighters into heroes for their brave response to the tragedy. He expressed his disappointment that the Pakistani media didn't report the efforts of rescue workers who reached the site of the crash in the absence of a vertical trail. The media expert on the panel discussion, Mr. Abdul Raheem Khan, from Jang Media Group, discussed the role and responsibilities of the media. Participants referred to the recent violence in London and Birmingham, to argue that civil disturbances occur not only in Pakistan but developed countries as well, and that the fall-out needs to be managed. Media Experts discussed projecting a soft image of Pakistan to regain tourism.

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Panel Discussion 3 was on the following topic, 'Travel and Tour Industry --- Promoting Safe Tourism in Pakistan.' The leading travel agent of Pakistan, Mr Yahya Polani, Chairman,Travel Agents Association of Pakistan managed the discussion as the Discussion Chair. The panelists included, Mr. M. Rafiq Khan, Chairman, Bukhari Travel and Tour Services, Mr. Muhammad Zamir Ahmad, COO, Southern Travels Ltd, Islamabad; Ms. Naheed Memon, CEO, ACE Travels Ltd; Mr. Abdul Raheem Khan, GM Communications, Jang Media Group; and Mr. Salman Javed, COO, Korea Air. Experts analyzed different segments of the travel and tour industries and identified growth opportunities. The impact of increasing restrictions on Pakistani visa for inbound visitors was brought to the attention of government officials. In particular, Hajj Operators discussed visa and other regulatory issues. Aviation industry officials discussed the impact of the law and order conditions in Pakistan on the operations of foreign airlines. Senior airport and security officials gave presentations on their areas

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of expertise. Mr. Mohd Rafiq Khan, Chairman , Bukhari Travels, said that Pakistan is a country of unmatched natural beauty, which has the potential to attract tourists from all over the world. In this land of great scenic beauty, lie some of the great cities of the world - Karachi, Lahore, Islamabad. He extended the full support of his group of companies for future forums organized by I&M for the development of Pakistan's aviation industry. Mr. Yahya Polani, MD of Polani's Travels, communicated his admiration for I&M's initiative. He said: 'I&M Conferences are famous in Pakistan for their high-level participation by govt officials, diplomats, and industry officials. I cannot miss the most important travel and tourism conference of the year in Pakistan.' Chairman of Pakistan Hotel Association, Mr. Jahan Zeb, expressed his support for the conference by saying that travel and hotel go together and this conference will contribute to the revival of tourism in Pakistan, which will benefit the hotel industry. Mr. Irfan Ahmed, CEO of chutti.pk, Pakistan's first travel and tour portal, said Egypt had set aside $50 million to promote tourism this year and a substantial part of it would be spent online. "The message is that Tahrir Square is over. Tourists should come back," he said. In view of the holy month of Ramadan, the conference was held from 9:30 am to 2:30 pm. Participants departed for them homes and offices, and then returned to enjoy iftaar and dinner at sunset at the Marriott Hotel. Prof S.B. Hassan, President and CEO of 'Investment & Marketing' presented a copy of I&M Special Report on Saudi Arabia to all the panelists. Conference delegates requested Prof Hassan of I&M and Mr. Salim Sayani of PIA to Co-Chair a Forum to Project Positive Image of Pakistan, in order to build on the success of the I&M Conference on Aviation and Travel.n

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OPINION

Pakistan – the way forward Dr. Atta-ur-Rahman

We live in an age in which natural resources have diminishing importance. Knowledge has become the single most important factor for socio-economic development. Countries that have realised that their real wealth lies in their children and invested massively in education, science, engineering and innovation have surged forward, leaving others behind. Just one company of Finland (Nokia), a country with a population about one-fourth of Karachi, has exports that are double the entire exports of Pakistan! Singapore, also with a similarly small population, has exports of $351 billion, almost 18 times those of Pakistan. South Korea revamped its educational system, laying emphasis on higher education, science and technology, and increased its university enrolment from five percent of the age group in 1960 to 92 percent of the same age group in 2010. The result was an astonishing increase in its exports, from $32 billion in 1960 to $466 billion by 2010. (Pakistan's exports stagnate at about $20 billion.) What went wrong in Pakistan? Since its formation in 1947 Pakistan has been facing one crisis after another. It is oscillating between successive democratic and military regimes. Regular military interventions were necessitated by corrupt governments which looted and plundered at will whenever they got an opportunity to do so, putting to shame the vision of Quaid-e-Azam Mohammed Ali Jinnah of a progressive, modern Pakistan. The military governments failed to punish those criminal politicians and bureaucrats who amassed vast fortunes abroad. In contrast, India brought in genuine

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Clearly, the British parliamentary system of democracy has been an abject failure. Military rule is also not an answer. Learning from bitter experiences, we need to adopt a system of governance which will root out and prevent corruption and promote the development of a strong knowledge economy. land reforms and, guided by the vision of Jawaharlal Nehru, gave the highest emphasis to education, science and technology. In contrast, Pakistan - where a robust middle class did not emerge because of the absence of land reforms -

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has developed one of the worst school systems in the world. The powerfully entrenched feudals, who have a stranglehold on the cabinets and parliaments, gave education the lowest importance, with Pakistan spending only 1.2 percent of its GDP, which makes it comparable to Bhutan, Nepal or Togo. We are now ranked among the bottom 10 countries of the world in terms of investments in education, a shameful fact about a nuclear power. The result has been an illiterate and lawless nation, drowning in foreign loans while the powerful loot and plunder. What, then, is the way forward? Clearly, the British parliamentary system of democracy has been an abject failure. Military rule is also not an answer. Learning from bitter experiences, we need to adopt a system of governance which will root out and prevent corruption and promote the development of a strong knowledge economy. The following key proposals are made in this connection: 1. Governance Reforms: We need to bring in constitutional and governance reforms by abolishing the present parliamentary form of democracy (which is bringing up largely corrupt politicians - 51 were found to have forged degrees and the degrees of another 250 are suspect) and replace it with a presidential form of democracy. The cabinet ministers, who should be eminent experts in their respective fields, could then be appointed directly on merit by the president (who will be the chief executive), from outside parliament. The Constitution will need to be changed to make this happen. The revised Constitution should also

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OPINION

ensure that parliamentarians are highly educated, as their primary job is lawmaking. Government secretaries should all be persons of international repute in the fields in which they are holding secretarial positions, and be selected on merit after open competition. The above measures will ensure that there will always be a competent government of technocrats. The positions of president, secretaries and parliamentarians should be screened by an Eminent Citizens Committee to be appointed by judges of the Supreme Court for "suitability" prior to their election/appointment. Persons judged by this committee as having "doubtful reputation" should not be allowed to contest any elections or hold any key positions in government or in government-controlled institutions. The heads and members of the boards of governors of public-sector organisations (PIA, the Steel Mills, etc.), as well as of such organisations as the Federal Board of Revenue, the FIA, the NAB, should be appointed by their respective boards of governors on merit after screening by the Eminent Citizens Committee, and not by the government. They should work as 06

completely autonomous organisations reporting to their own eminent boards of governors and not to any government ministry or official. It is notable that the former federal minister of finance, Mr Shaukat Tareen, estimated corruption of Rs500 billion annually in the FBR alone! 2. Education: If we are to rid ourselves of the crushing poverty and the huge national debt, we must develop a robust knowledge economy. This is only possible if we make necessary amendments to our Constitution to force our decision-makers to give education the highest national priority. Malaysia has been investing 30 percent of its budget for the last 30 years - we must by a constitutional requirement do the same. The only way out for Pakistan from its myriad difficulties - law and order problems, corruption, non-functional democracy, poverty, industrial stagnation, etc. - is to make quality education the launching pad for a new Pakistan. With about 90 million young people below the age of 19, we have a tremendous potential human resource. This offers a unique opportunity for development. If we empower this huge young workforce with quality education and training, and provide

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opportunities for jobs in key economic sectors, then a wonderful future lies ahead. If we don't, then this can become a stifling burden that will only lead to massive poverty, frustrations and crime. Massive investments in education at all levels will allow us to develop the knowledge workers that are needed in high-tech industries - engineering goods, pharmaceuticals, biotechnology products, metallurgy, information technology, electronics, high value-added agriculture products, defence goods etc. - so that we can compete in the comity of nations. A national technology policy directed at achievement of national self-reliance needs to be formulated and implemented so that we become a major global exporter of high-tech products. 3. Prompt Access to Justice: We must punish the corrupt and those responsible for terrorism. The normal legal system has failed in this respect, because of the life threats to judges and witnesses by the powerful, the corrupt and terrorists. This has to be initially done under independent military courts until cleanup is achieved and a proper functional police force is established. Those who have amassed vast amounts of national wealth in foreign lands must be forced to return it to the nation and spend the rest of their lives in jails. A major overhaul of the justice system would be needed, including a mandatory requirement that court decisions are made within three months by strengthening the courts. This will need to be accompanied by genuine land reforms and abolition of the patwari system through computerisation of land records, our courts are choked by land disputes. The decision is ours to make as a nation. We have the natural and human resources and creative, hardworking people. The dream of Mohammed Ali Jinnah, the father of our nation, can become a reality if we are courageous and set a new path for ourselves through the above reforms. The writer is former federal minister for science and technology, former chairman of the Higher Education Commission. Email: ibne_sina@hotmail.com

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Asia airlines eye JapanÂ’s low-cost boom TOKYO: Despite high landing fees and fuel taxes, Japan has seen a rush by domestic airlines and their overseas partners to set up low-cost carriers in anticipation of booming demand for air travel in Asia. In less than a year, three new so-called LCCs have been unveiled as carriers aim to take demand away from Japan's bullet trains and buses, with an eye on airport capacity increases and rising demand as the economy recovers from the March 11 disasters. All Nippon Airways has stakes in Peach and also in AirAsia Japan, a venture with Malaysia's AirAsia, while Japan Airlines and Australia's Qantas on Tuesday unveiled their Jetstar Japan venture. But they are also positioning themselves against regional rivals to tap into Asia's huge growth potential amid rising affluence in places such as India and China, analysts say. Aircraft manufacturer Boeing Co. expects that half of the world's new traffic added during the next 20 years will be to, from or within the Asian-Pacific region. Japan has recently signed "open skies" agreements with the likes of the United States, Korea, Singapore, Malaysia, Hong Kong, Vietnam, Macau and Indonesia, opening the door to new entrants. "Japan's civil air transport policy is undergoing big changes, with the proliferation of 'open skies' agreements with other countries and the future 'liberalisation' of many domestic airports," said Geoffrey Tudor, a Tokyo-based analyst at Japan Aviation Management Research. "High infrastructure costs, a heavy fuel tax and sky-high landing fees have made it difficult to introduce LCC level fares but that is starting to change," he said. landing slots being made available, Japanese airlines risk losing out on demand to low-

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cost foreign rivals that are being courted for business by under-utilised domestic airports, analysts say. "Budget airlines are entering the market after Japan expanded the number of departure and arrival slots at the nation's key airports," said Makiko Nakagawa, aviation analyst at Fukoku Capital Management in Tokyo. Larger airports such as Tokyo's Narita are also set to expand. Currently there are 220,000 slots annually at Narita, but this will grow to 300,000 slots by 2015 and the airport is planning its own LCC terminal. Makiko warned that both ANA and JAL "will have to differentiate themselves from the expected influx of budget airlines into the Japanese market" and a competitive Asian space. By teaming up with Qantas and AirAsia, JAL and ANA "have done the smart thing and teamed up with highly successful LCC partners", said Tudor. Japanese budget carriers such as

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Skymark have been unable to offer the kind of heavily discounted fares associated with budget airlines in the United States and Europe due to high operating costs. The extensive Shinkansen or "bullettrain" network also often provides a fast and cheaper alternative for domestic travel in Japan. Larger carriers have also been forced to review their strategies. carrier JAL has been forced to restructure amid bankruptcy proceedings that it completed in March after going under in January 2010 with debts of about 2.32 trillion yen ($28 billion). ANA has also not escaped the need for restructuring and wage cuts. All Nippon Airways holds a 67 percent stake in its AirAsia Japan venture with Southeast Asia's largest budget carrier AirAsia, and a 33.4 percent stake in budget carrier Peach. Both aim to be airborne by the middle of next year. On Tuesday Qantas Airways, Japan Airlines and Mitsubishi Corp. said they will launch Jetstar Japan by the end of next year, aiming to offer fares that are 40 percent below existing domestic prices. All three new airlines are eyeing shorthaul Asia routes. Qantas already operates its own lowcost Jetstar Airways unit, which it will use to set up the venture in Japan. Qantas also has used Jetstar Airways to form ventures in Singapore and Vietnam. Its restructuring plans will see it create a premium airline as well as its Jetstar joint venture and slash 1,000 jobs. "Closer engagement with Asia is regarded as essential," said Qantas chief Alan Joyce. "China may already have the world's fourth largest population of millionaires, and India the 12th. There are many, many millions of premium travellers in waiting."n

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth

An Introduction to Aviation Safety Wing Commander Syed Naseem Ahmed What is Safety? - Zero accidents (or serious incidents)? - Freedom from danger or risks? - Error avoidance - Regulatory compliance? - Â…? Concept of Safety - Safety is the state in which the risk of harm to persons or property damage is reduced to, and maintained at or below, an acceptable level through a continuing process of hazard identification and risk management. -

Consider The elimination of accidents (and serious incidents) is unachievable. Failures will occur, in spite of the most accomplished prevention efforts. No human endeavour or human-made system can be free from risk and error. Controlled risk and error is acceptable in an inherently safe system.

How it is achieved - Licensing operational personnel - Certification of aircraft, operators and airports - The control and supervision of licensed personnel, certified products and approved organisations, - Provision of air navigation services - Aircraft accident and incident investigations AVIATION SAFETY GLOBAL INDICATORS - State Aviation Legislation - ICAO SARPS - Independent Audits - Media - Public perceptions - State Organizations/Interested Parties - Accident Rate National Legislative Framework Legislative system in a State comprises

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three tiers: 1. The primary aviation legislation: in this case the Civil Aviation Act 2. The secondary legislation: the operating Civil Aviation Regulations (CARs); and 3. The supporting requirements and guidance: CAA Requirements and Advisory Circulars (ACs). Regulatory Framework - Enables the compliance with the obligations of a State under the Chicago Convention. - Provides consistency and compliance with the Annexes to the Convention wherever practicable - Enables, the application of the CAA Requirements. - Provides a simplified interpretation of the CARs wherever practicable. ICAO SARPS - Annex 1 to 18 - Annex 13 - Improvement through investigations - Safety through investigations(ISASI) - Release of accident investigation report as soon as possible. ICAO ANNEX 13 Standard 6.5 In the interest of accident prevention, the State conducting the investigation of an accident or incident shall release the Final Report as soon as possible ICAO Annex 13 Standard 6.5 Present In the interest of accident prevention, the State conducting the investigation of an accident or incident shall release the Final Report as soon as possible. To be Amended by Nov 2010 - In the interest of accident prevention, the State conducting the investigation of an accident or incident shall make the Final Report publicly available as

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soon as possible and, if possible, within twelve months. ICAO Annex 13 Recommendation 6.6 to be upgraded to a Standard status of the investigation is to be publicly available on each anniversary of the occurrence if the final report is not completed within 12 months Comparison of the scope CAAs CAA PAKISTAN - Promotion of civil aviation activities; - Regulation of civil aviation activities; - Development of an infrastructure for safe, efficient, adequate, economical and properly coordinated civil air transport service in Pakistan. CASA AUSTRALIA - The main object of this Act is to establish a regulatory framework for maintaining, enhancing and promoting the safety of civil aviation, with particular emphasis on preventing aviation accidents and incidents". Aviation Safety Improvement- A Common Cause " Then why not cooperate for Public Interest " Through sharing of knowledge and information " Raising Public Awareness Common Traditional Barriers to Safety improvement - Unawareness - Legislation - Professionalism - Knowledge - Technical Support - Financial Resources The Real Blockade - A notion that I know everything - We do not need any training - We do not require specialists.n

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Travel & Tourism Economic Impact 2011

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth DEFINING THE ECONOMIC CONTRIBUTION OF TRAVEL & TOURISM

To u r i s m S a t e l l i t e A c c o u n t : Recommended Methodological Framework (TSA: RMF 2008). The total contribution of Travel & Tourism includes its 'wider impacts' (ie the indirect and induced impacts) on the economy. The 'indirect' contribution includes the GDP and jobs supported by: The direct contribution of Travel & Tourism to GDP reflects the 'internal' spending on Travel & Tourism (total spending within a particular country on Travel & Tourism by residents and nonresidents for business and leisure purposes) as well as government 'individual' spending - spending by government on Travel & Tourism services directly linked to visitors, such as cultural (eg museums) or recreational (eg national parks). Travel & Tourism is an important economic activity in most countries around the world. As well as its direct economic impact, the industry has significant indirect and induced impacts. The UN Statistics Division-approved Tourism Satellite Accounting methodology (TSA:RMF 2008) quantifies only the direct contribution of Travel & Tourism. But

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WTTC recognises that Travel & Tourism's total contribution is much greater, and aims to capture its indirect and induced impacts through its annual research.

Direct Contribution

The direct contribution of Travel & Tourism to GDP reflects the 'internal' spending on Travel & Tourism (total spending within a particular country on Travel & Tourism by residents and non-residents for business and leisure purposes) as well as government 'individual' spending -

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spending by government on Travel & Tourism services directly linked to visitors, such as cultural (eg museums) or recreational (eg national parks). The direct contribution of Travel & Tourism to GDP is calculated to be consistent with the output, as expressed in National Accounting, of tourism-characteristic sectors such as hotels, airlines, airports, travel agents and leisure and recreation services The direct contribution of Travel & Tourism to GDP is calculated to be

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consistent with the output, as expressed in National Accounting, of tourism-characteristic sectors such as hotels, airlines, airports, travel agents and leisure and recreation services The direct contribution of Travel & Tourism to GDP is calculated from total

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internal spending by 'netting out' the purchases made by the different tourism sectors. This measure is consistent with the definition of Tourism GDP, specified in the 2008 The 'induced' contribution measures the GDP and jobs supported by the spending of those who are directly or

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indirectly employed by the Travel & Tourism industry that deal directly with tourists. The direct contribution of Travel & Tourism to GDP is calculated from total internal spending by 'netting out' the purchases made by the different tourism sectors. This measure is consistent with the definition of Tourism GDP, specified

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth

in the 2008

TRAVEL & TOURISM'S CONTRIBUTION TO GDP

Pakistan: Total Contribution of Travel & Tourism to GDP The direct contribution of Travel & Tourism to GDP is expected to be PKR507.3bn in 2011 (3.0% of GDP). This primarily reflects the economic

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activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). But it also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists. The direct contribution of Travel & Tourism to GDP is expected to grow by 5.5% per annum

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(pa) to PKR867.6bn (3.0% of GDP) by 2021. The total contribution of Travel & Tourism to GDP (including wider effects from investment, the supply chain and induced income impacts, see page 2) is expected to be PKR1,092.3bn in 2011 (6.5% of GDP). It is forecast to rise by 5.4% pa from PKR1,842.5bn by 2021 (6.4% of GDP).

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth

COUNTRY RANKINGS, 2011

WTTC League Table Extract: Absolute Contribution

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COUNTRY RANKINGS, 2011

WTTC League Table Extract: Relative Contribution

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth

COUNTRY RANKINGS, 2011 - 2021

WTTC League Table Extract: 10-year Real Growth per annum

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SUMMARY TABLES

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth

THE ECONOMIC CONTRIBUTION OF TRAVEL & TOURISM

*Concepts shown in this table align with the standard table totals as described in the 2008 Tourism Satellite Account: Recommended Methodological Framework (TSA: RMF 2008) developed by the United Nations Statistical Division (UNSD), the Statistical Office of the European Communities (EUROSTAT), the Organisation for Economic Co-operation and Development (OECD) and the World Tourism Organization (UNWTO).

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THE ECONOMIC CONTRIBUTION OF TRAVEL & TOURISM

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth

Birth of a Nation, Birth of an Airline Air transport has probably never been more important to the development of a new nation than in the case of Pakistan. In June 1946, when Pakistan was still in the offing, Mr. Mohammad Ali Jinnah, the Founder of the upcoming nation, instructed Mr. M.A. Ispahani, a leading industrialist, to set up a national airline, on a priority basis. With his singular vision and foresight, Mr. Jinnah realized that with the formation of the two wings of Pakistan, separated by 1100 miles, a swift and efficient mode of transport was imperative.

Orient Airways Takes to the Skies

On 23rd October 1946, a new airline was born. Initially registered as a pilot project in Calcutta, Orient Airways Ltd. had at its helm Mr. M.A. Ispahani as Chairman and Air Vice Marshal O.K. Carter as General Manager. The new carrier's base remained in Calcutta and an operating license was obtained in May 1947. Four Douglas DC-3s were purchased from Tempo of Texas in February 1947 and operations commenced on 4th June 1947. The designated route for Orient Airways was Calcutta-Akyab-Rangoon, which also happened to be the first postwar international sector to be flown by an airline registered in India. Within two months of Orient Airways' operational beginnings, Pakistan was born. The birth of a new nation generated one of the largest transfers of population in the history of mankind. Orient Airways, along with the help of BOAC aircraft which had been chartered

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by the Government of Pakistan, started relief operations and transportation of people between Delhi and Karachi, the two capitals. Subsequently, Orient Airways transferred its base to Pakistan and established a vital link between Karachi and Dacca, the two capitals of the two wings of Pakistan. With a skeleton fleet of just two DC3s, three crew members, and twelve mechanics, Orient Airways launched its scheduled operations in a fairy-tale manner. The initial routes were Karachi-Lahore-Peshawar, KarachiQuetta-Lahore and Karachi-Delhi Calcutta-Dacca. By the end of 1949, Orient Airways had acquired 10 DC3s and 3 Convair 240s which were operated on these routes. In 1950, it had become increasingly apparent that additional capacity would have to be inducted to cater to the growing needs of the sub-continent.

A New National Flag Carrier for Pakistan

Orient Airways was a privately owned company, with limited capital and resources. It could not be expected to grow and expand independently. It was then that the Government of Pakistan decided to form a stateowned airline and invited Orient Airways to merge with it. The outcome of the merger was the birth of a new airline, through PIAC Ordinance 1955 on January 10, 1955. In addition to transport activities, Orient Airways had established the

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth nucleus of overhaul and maintenance facilities and acquired trained pilots, engineers and technicians, measures which proved to be a great asset for PIA during its teething phase.

PIA's First International Service

The year 1955 also marked the inauguration of the fledgling airline's first scheduled international service - to the glittering, glitzy capital city of London, via Cairo and Rome. Initially, there was much criticism, as the public could not comprehend or justify the need to operate an international route when, in their opinion, other projects vital for a developing country should have been given a higher priority. However, PIA's focus was, and continues to be, to serve the Pakistani community at large. The provision of transportation to expatriates has remained one of the foremost priorities of the national airline. Moreover, PIA earned substantial foreign exchange through international services, which it invested in the purchase of aircraft and spare parts, as fleet expansion was a grave necessity for the airline.

New Planes, New Directions, New

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Management

In 1956, orders were placed for two Super Constellations and five Viscounts which were to be delivered in 1959. At this juncture, PIA possessed a small fleet which comprised of Convairs, Viscounts, Super Constellations and DC-3s. While Mr. M.A. Ispahani was the first Chairman of the new dynamic airline; it was the first Managing Director of PIA, Mr. Zafar-ul-Ahsan, who in his 4 year tenure, got the ball truly rolling and set the shape of things to come. The PIA Head Office building at Karachi Airport, which houses all the major departments of the airline, was the brain-child of Mr. Zafarul- Ahsan. In fact, on his departure from the airline, the employees presented him with a silver replica of the building with the caption, "The House You Built". In 1959, the Government of Pakistan appointed Air Commodore Nur Khan as the Managing Director of PIA. With his visionary leadership, PIA 'took off' and within a short span of 6 years, gained the stature and status of one of the world's frontline carriers. In aviation circles, this period has often been referred to as the "golden years of PIA". Development, expansion, and growth were keywords that the new management was committed to. In March 1960, PIA launched its first Boeing 707 jet service on the London-Karachi-Dacca, route which later proved to be very successful. This trail-blazing accomplishment resulted in PIA becoming the first Asian Airline to operate a jet aircraft, setting trends for the future. In 1961, the airline took on the mammoth task of initiating a cross-Atlantic service from Karachi to New York. By this time, PIA had placed orders for more new aircraft, which included Fokker F27s, Boeing 720Bs and Sikorsky helicopters. Helicopter services in East Pakistan had gained momentum by 1962 and expanded to include Sylhet, Chittagong, Dacca, Comilla and Ishurdi. PIA's helicopter services carried over 70,000 passengers during the first year of operation. At the time, it was regarded as a stellar operation, equal to any other in the world. Unfortunately, due to two mishaps, the service was discontinued in

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1966.

Historic Firsts and Unbroken Records

In 1962, finding the upper winds forecast favorable, PIA set out to break the record for the fastest flight between London and Karachi. With representatives of FAI (Federation Aeronautique International) on board to monitor the official timings, PIA completed the flight in 6 hours, 43 minutes, 51 seconds, a record which remains unbroken to this day. In 1964, PIA achieved another historic first, regarded as a major milestones in the chequered history of the airline. On 29th April, 1964, with a Boeing 720B, PIA earned the distinction of becoming the first airline from a non-communist country to fly into the People's Republic of China.

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth the following year.

Style, Glamour, and Charisma

Around this time, the airline saw a change in the top slot. Air Vice Marshal, Asghar Khan took over the reigns of PIA for a tenure of 3 years. A number of highpoints are attributed to this period. The most colourful, if not the most significant, occurrence for PIA was the introduction of a new air-hostesses' uniform designed by none other than the renowned French designer, Pierre Cardin. Taking the aviation world by storm, this move, more than any other single factor, imprinted PIA's name on the international market. The uniforms were an instant hit, both at home and abroad.

Safety Management System at PIA

PIA's first service to China was from Karachi to Shanghai via Canton. In 196465, PIA expanded its fleet further with the addition of a fourth Boeing 720B and two Fokker F-27s. Serious development had become a reality and the PIA team continued to move ahead with ambitious plans and goals for the national flag carrier. A collective pride and a joyous buoyancy was pervasive within the PIA family. Riding high on the crest of success, PIA became a household name in Pakistan in the mid sixties. The war between India and Pakistan, during 1965, further tested the national airline. PIA played a major role in providing logistical support to the Armed Forces by operating special flights using Boeings, Super Constellations, and Viscounts. The Founder of the Nation, Mr. Jinnah had predicted that the Pakistan Airforce would need the support of a civil airline in special circumstances, and this came into evidence during the war. In 1966, a system of feeder services linking eight new points in West Pakistan was introduced. By this time, the airline's Viscounts were proving inadequate owing to traffic growth, and had to be replaced by Tridents. The airline continued up the growth curve, receiving two Fokker F27s, two Boeing 707s and one Trident in

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PIA is the first airline to get certified (initial certification) on Safety Management System (SMS) by Civil Aviation Authority CAA - Pakistan. CAA Air Navigation Order (ANO 91.0032 issued in September 2008) binds all airlines operating in Pakistan to have SMS. Well before the issuance of this ANO, PIA initiated SMS awareness and implementation in July 2008. PIA awarded initial certification on SMS in 27th February 2009 by CAA. The Pursuit of Excellence Through Technology and Quality Control Not content with a number of historic firsts under its belt, PIA made history yet again, by installing Pakistan's first computer, an IBM1401, in 1967. PIA's first Engine Overhaul Shop, located near the Head Office building, was also completed and commissioned around this time. The Ground Training School (GTS)

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now known as the PIA Training Centre, was first conceived and developed during 1961-62. Interestingly, training was initially imparted in the T-shaped building which has now become the PIA Dispensary, close to the Head Office building. Besides visible development and growth in traffic and revenues in the sixties, PIA added additional destinations, new equipment, and cutting-edge technology to support its ever expanding operations. A new Jet Hangar for Boeings with a supporting airframe overhaul shop was completed and commissioned in 1968. In 1970, PIA set up its own Flight Kitchen in Karachi, which caters, even today, to the national airline as well as other carriers. Over the years, with the airline's expansion and increased capacity, the need for a second Flight Kitchen became imperative.

Ushering In a New Era of Growth and Development

PIA heralded the nineties by donning a bright new corporate identity. Old-timers may remember the flutter that the earlier green and gold livery had created when it was first introduced in 1974. However, in keeping with the changing times, PIA introduced a smart, sporty 90's look. The familiar PIA green was reinforced with moss green and pale blue stripes were incorporated into the new corporate identity. The stripes, a universal symbol of sport, highlighted PIA's active participation and sponsorship of a diverse range of national games. PIA's players have always been at the forefront of Pakistani Cricket, Hockey, Squash, Football, Chess, Bridge, Polo and TableTennis teams. The nineties also saw the expansion of PIA's massive Haj and Umrah operations to Pakistan's smaller cities, in addition to the major cities of Islamabad, Peshawar, Lahore, Quetta and Karachi. PIA's growth continues unabated and the airline now operates globally, covering the entire domestic landscape and international destinations spread over 4 continents. Impressive statistics for a comparatively young airline? Since its inception in 1955, PIA has indeed, come a long way.n

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth

Salient features of the Hajj Policy 2011 Ministry of Religious Affairs - Islamabad

i. Pakistani Hujjaj quota has been increased from 159,647 to 179,256. ii. Hajj scheme 2011 shall be implemented through Government Hajj Scheme and Private sector i.e. Hajj Group Organizers (HGOs) with proportionate share of around 50:50. iii. There shall be no balloting this year under Government Hajj Scheme and applicants will be considered successful on the principle of "first come first serve". iv. The applications under Government scheme will be invited from 15th April to 10th May 2011 through designated banks. v. Under the Government Hajj Scheme, there will be two categories of accommodation i.e. Green Category within 2000 meters without transport with a rental ceiling of Saudi Rayal (SR) 4000/- per pilgrim and White Category beyond 2000 meters with transport with a rental ceiling of SR.3600/- per pilgrim. vi. The rent in Makkah Mukarramah will be charged on actual basis from pilgrims and at Madinah Munwwarah at a flat rate of SR.450/- per pilgrim. vii. PIA has agreed for airfare @ Rs. 72,000/- for south zone and Rs. 84,000/for north zone. viii. Hajj dues of White category will be Rs. 200,847 for south zone and Rs. 212,847 for north zone. ix. Hajj dues of Green category will be Rs. 210,047 for south zone and Rs. 222,047 for north zone. x. Hujjaj will be airlifted by the national airlines of both countries in equal share, in pursuance of the revised Air Service Agreement (ASA) between Government of Pakistan and Kingdom of Saudi Arabia. xi. 15% of the total seats under

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Government scheme will be reserved for hardship cases, pilgrims recommended and funded by charitable institutions and Labour/low paid Employees of different organizations/corporate entities under corporate social responsibility etc. Balance number of seats, if any, will be allocated to late comers at an enhanced package @ 5% of the Green category to fill the resource gap for welfare activities. xii. A broad based Accommodation Hiring Committee comprising five members will hire the accommodation in

Makkah Mukarramah and Madinah Munawwarah. xiii. Hujjaj under Government scheme will not be required to pay any amount on account of Personal Exchange Quota (PEQ) and same will be arranged by them from open market through banks or foreign exchange companies. xiv. There shall be no fresh enrolment of HGOs in the year 2011. HGOs already enrolled with MORA in the year 2010 shall continue in 2011 with the same quota. xv. HGOs will offer only two packages i.e. economy and executive. xvi. For the welfare services, Medical Hajj Mission will be increased from 260

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(2010) to 540 (2011), 230 Khuddam ul Hujjaj to be drawn from Armed Forces, Civil Armed Forces & Pakistan Boys Scouts and number of Local Khuddam ul Hujjaj to be increased from 250 (2010) to 900 (2011) subject to availability of resources. xvii. A comprehensive awareness campaign and training to the intending pilgrims will be launched. xviii. Hujjaj Mohafiz Scheme based on the concept of "Takaful" will be launched with the contribution of Rs.400/non-refundable by each Haji for compensation due to death / accident during Hajj. xix. There will be a c o m m i t t e e o f Parliamentarians called "Hajj Advisory Committee" to advise on policy, planning and management of Hajj operation 2011 in Pakistan as well as in KSA. xx. Any person who has performed Hajj during the last five years will not be eligible except Mehram, Group Leader or undertaking Haj-ebadal. xxi. International Machine Readable Passport, Computerized National Identity Card and medical certificate shall be mandatory. xxii. All pilgrims (Male/Female) to affix a Pakistan flag sticker on their "Ahrams" for identification. Every female pilgrim to carry at least two "Abayas" preferably of black colour. xxiii. Pilgrims to ensure that their luggage is labeled bearing Name, Nationality, Passport Number, Air Carrier, Building and Flight Numbers. xxiv. Monitoring and supervision mechanism for Hajj operation in Pakistan and KSA shall be strengthened.n

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth

SHAHEEN AIRPORT SERVICES

SAPS IS COMMITTED TO PROVIDE SAFE, EFFICIENT AND COMPETITIVE GROUND HANDLING SERVICES TO ALL VALUED PARTNERS IN AVIATION BUSINESS

Shaheen Airport Services - SAPS is a subsidiary of Shaheen Foundation, PAF. It specializes in the aircraft ground handling business to cater for the Aviation Industry of Pakistan. Since 1982, the inception year at Karachi, it is presently, operating 24/7 from all major International airports of Pakistan which includes Karachi, Lahore, Islamabad, Peshawar & Quetta. In addition, it is ready to handle special flights at short notice even at remote airfields with full movement / transportation of its resources i.e., equipment and trained manpower. SAPS is fully equipped to handle any type of narrow body and wide body freighter or passenger aircraft as well as VIP/VVIP and Executive Jets. From aircraft parking to servicing and pushback, all types of services are provided to handle an aircraft once it is on the ground. SAPS places high importance to the smooth handling and

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on time departure of any flight by deploying adequate Ground Support Equipment and sufficient trained manpower. We may add that SAPS staff are effectively supervised and are trained to work with determination, considering ground time their enemy and thus they often succeed in reducing ground time due to delayed arrival of aircraft. SAPS flight operation is fully functional at all our stations and is operational 24 hours, manned by qualified and experienced staffs that are fully capable to provide crew briefing, flight documentation, ATS flight plan filing and NOTAM required during flight assistance. SAPS takes pride in declaring that it has the most modern Cargo Terminals in Pakistan covering all the necessary facilities both for Import and Export Cargo and the Warehousing storage space facility pertaining to the handling of perishable items, dangerous goods, valuable goods, special shipments and unaccompanied baggage. SAPS staff always strives hard to come up to the expectations of airlines, consignees and shippers by using most modern computerized system of cargo management. The sophisticated cargo screening facility coupled with the latest CCTV cameras and sufficient number of

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth Goods Regulations, Weight and Balance Computation, Flight Operations Officers License, Grooming, Computer Familiarization, Basic Loader Operation, Ramp Safety, Fire Safety, Aviation Security, Quality Assurance, etc. SAPS, an ISO 9001-2008 qualified company, is a member of IATA Ground Handling Council and has attuned to excellent operational expertise required to face current and future challenges. It has distinction in terms of Safety, Quality and Reliability. In a continual effort for improvements, SAPS is heading towards IATA Safety Audit for Ground Operations (ISAGO). Our mission is to provide safe, effective and competitive ground handling services to all valued partners in the aviation business.n

security guards on duty 24 hours ensures maximum security for our cargo operations. It provide International standard of aviation training in various aspects of airport operations through its Aviation College which is IATA accredited for all categories of DGR training. The courses which are conducted at the Aviation College prepare personnel for Passenger Services, Cargo Handling, Dangerous

Ramada plaza Karachi In a very short span of time, Ramada plaza Karachi has earned the reputation as the most active place in the community for creating activities according to the cultural, religious and regional events. In the same line of our tradition, we have arranged an "ultimate Pakistani theme" to celebrate our holy month of ramazan. We offer traditional style of provincial theme representing all four provinces. The bar be que from khybar pakhtoon khawa, famous sajji from balochistan, the all time favorite food from Punjab and not to forget the famous sindhi biryani with other sindhi dishes are waiting for our patronizers. By depicting the true spirit of being Pakistani, ramada plaza Karachi has developed a fine name for iftar / dinner. This year again, we will make sure that the holy month of ramazan is celebrated at its best at ramada plaza karachin

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SITA reaches two millionmessage milestone for daily aircraft communications The leading specialist in air transport communications, SITA, announced that it is now processing two million messages per day for more than 10,000 user aircraft, airline operations centres, air traffic control, and aircraft and engine manufacturers. The airline industry standard cockpit ACARS (Aircraft Communications Addressing and Reporting System) messages are critical to the safety and the operation of the world's aircraft and are supported by data link processing centres in Montreal and Singapore and an extensive network of over 1,200 VHF ground stations. Demand for the SITA service has doubled in five years and the new generation aircraft, such as the Airbus A380 and the Boeing 787, still have ACARS systems for their flight-critical communications in parallel with their new generation electronic flight bags. Pilots and cockpit systems use ACARS primarily to communicate with airline flight operations and aircraft maintenance departments as well as with air traffic control. Critical routing information is sent by air traffic control through Controller Pilot Datalink Communications (CPDLC) over FANS (Future Air Navigation) systems using ACARS. Weather updates or new flight plans can be requested by the crew. ACARS also supports realtime engine monitoring by delivering data to aircraft and engine manufacturers.n

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth

PIA Shaheed Benazir Bhutto Flight Academy (SBBFA) inaugurated PIA Shaheed Benazir Bhutto Flight Academy's (SBBFA) formal launch ceremony was held at Shaheed Benazirabad DistrictNawabshah Airport on Saturday 30 July 2011. The Academy was inaugurated by Chairperson National Assembly Standing Committee on Defence and MNA, Dr. Azra Fazal Pechuho. Speaking at the occasion Ms. Pechuho said that the inauguration of the Flight Academy has been made possible through the initiatives taken by the present government, Honorable President of Pakistan, Mr. Asif Ali Zardari and the personal efforts of Managing Director PIA, Mr. Nadeem Khan Yousufzai. Ms. Pechuho praised the efforts of PIA management in the realization of the Flight Academy. Ms. Pechuho said that there are a few female pilots but now after the opening of the Flight Academy, more should apply and that she would like to see women pilots flying commercial aircrafts not only for PIA but for other airlines in Pakistan and globally as well. Managing Director PIA, Mr. Nadeem Khan Yousufzai said that he was grateful to President of Islamic Republic of Pakistan Mr. Asif Ali Zardari for

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PakistanÂ’s Aviation & Travel Industry --Synergy & Growth having confidence in him to make the Shaheed Benazir Bhutto Flight Academy project a reality. He also appreciated the role of Director Standards and Special Projects PIA, Captain Junaid Younus, Director Flight Operations PIA, Captain Naveed Aziz and First Officer, Chakar Ali Shah for their sincere efforts in this regard. He especially thanked Pakistan Civil Aviation Authority (CAA-Pakistan) for their cooperation. MD PIA further said that the students who have completed their ground schooling and now are being

trained for commercial flying. Insha Allah their training will be completed on time and they will get the opportunity to serve airlines, he added. MD PIA wished them success in their future and said that he was hopeful that very soon students from abroad especially from brethren Islamic countries will join the Academy for the training of pilots. Director Standards and Special Projects PIA, Captain Junaid Younus gave a brief to the gathered audience on the functionality of the Flight Academy. Captain Junaid Younus while briefing, said that the Academy will use modern training aids such as simulators, computer based training facilities, models and actual aircraft instruments for training both at Nawabshah and PIA Training Center Karachi. Two Cessna 172N aircraft are being used for the said purpose; he said two more Cessna 172N join the fleet soon, he concluded. Later during the ceremony, Managing Director PIA, Mr. Nadeem Khan Yousufzai presented a Shield to the Chief Guest, Dr. Azra Fazal Pechuho. The Chief Guest distributed Certificates to 15 trainee flying cadets on completion of their Ground training.

Towards the end of the ceremony Cadet Pilots flew off Cessna 172N aircraft at Nawabshah Airport. The Ceremony was attended by PIA Directors, Senior Officials of the airline, Businessmen, Bureaucrats, Ministers and Government officials. At PIA Shaheed Benazir Bhutto Flight Academy, the program takes about 14 months and after completion of ground training and 200 flying hours, one can attain the license of Commercial Pilot and start their careers with any airline in the world.n

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