Air Karachi Launches as New Pakistani Start-Up Airline
Air Karachi is the latest start-up airline in Pakistan, emerging after a failed attempt to sell a majority stake in Pakistan International Airlines (PIA). The new airline is a joint venture backed by local business leaders and corporate investors, with Atif Ikram Sheikh, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), taking the lead.
Sheikh revealed that investors have already pledged an initial seed funding of PKR 5 billion (USD 18 million) for Air Karachi, with plans for additional financing to follow. Initially, the airline will operate with three leased aircraft on domestic routes, with future expansion plans to include international destinations.
“Our approach will deliver price competitiveness, value, growth, and sustainability,” Sheikh said. “We need to bring this model to Pakistan.” The airline aims to provide affordable and reliable air travel while expanding its network and meeting international standards.
The key investors in Air Karachi include prominent figures such as Aqeel Karim Dhedhi, chairman of AKD Group; Arif Habib, chairman of Arif Habib Limited; Bashir Janmohammad, an industrialist and educationist; and former FPCCI presidents Zubair Tufail and Hanif Gohar, among others. Retired Air Vice Marshal Imran Qadir has been appointed as the first CEO of Air Karachi.
Air Karachi’s business model draws inspiration from AirSial, a successful carrier based in Sialkot, Pakistan, which launched in 2020. AirSial, like Air Karachi, is owned by local business figures and has expanded from domestic flights to international routes.
The proposal for Air Karachi comes in the wake of the Pakistani government’s unsuccessful attempt to sell a majority stake in PIA. In late October 2024, the government held an auction for 60% of PIA, but only received a single offer of PKR 10 billion (USD 36 million), well below the reserve price of PKR 85 billion (USD 306 million). The sole bidder argued that the offer reflected the true value of PIA.
Sheikh emphasized the need for a well-managed airline to attract foreign investment and boost tourism in Pakistan. “Pakistan cannot attract substantial foreign investment or tourism without an airline that meets international standards and operates with integrity,” he said.
Air Karachi has already registered with the Securities and Exchange Commission of Pakistan and submitted a license request to the federal government. As the airline moves closer to launching operations, it aims to fill the gap left by the underperforming PIA and provide a new option for domestic and international travelers in Pakistan.
With its strong backing and a focus on competitive pricing and sustainability, Air Karachi hopes to contribute significantly to Pakistan’s aviation industry, offering a fresh approach to air travel that aligns with international standards.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com