Malaysia Airlines ceases its operations in Pakistan

Malaysia Airlines ceases its operations in Pakistan

Tuesday, January 10, 2012: Malaysia Airlines has packed up their bags and bid adieu to its operations in Pakistan. Malaysia Airlines is exhibiting a significant route rationalisation exercise as part of its Business Plan, which
they had already divulged to the Government of Pakistan back in December 2011.

The basic motivation behind its closure is to stem the companies losses anticipated in 2011 and 2012.  

Nihal Akbar, finance head of Malaysia Airlines, said, “The decision is not abrupt. The airline had decided to wrap up its operations in Pakistan last year in September. According to our information, the government of Malaysia informed
the government of Pakistan about the pending closure in October last year.”

The Civil Aviation Authority (CAA) claims that Malaysia Airlines decision to cease its operation in the country was purely based on their Business plan and not because they were facing any problems in Pakistan. A source within
CAA said, “This fact is clear because they have cut down their global operations in different countries and not only in Pakistan.”

Aviation industry officials say that government of Pakistan should increase its efforts to lure foreign airlines to country because of the immense economic advantages that the aviation industry offers to any economy. They say that
an increase in the operations of foreign airlines will help improve hotel occupancy, tourism and other associated industries that Pakistan needs in these difficult economic times.

Malaysia Airlines is not the only company that has closed down its operations in Pakistan. In recent years Singapore Airlines, Lufthansa and Swiss International Air Lines have all closed down operations in Pakistan, usually citing
low revenues and profitability.

Malaysia Airlines decision to cease operations will affect a significant number of Pakistani students, tourists and business people who frequently travel to Malaysia and Australia through the airline.

The airline had two weekly flights from Pakistan on the Dubai-Karachi-Kuala Lumpur route. The decision will help the other airlines operating on this route like Cathay Pacific and Thai Airways as nearly all of the Pakistani traffic
of Malaysia Airlines will now be diverted to these airlines.

Short URL: https://www.newspakistan.pk/?p=8787

Posted by Wajahat Javed on Jan 11 2012. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry