Pakistan’s air connectivity is dominated by the Middle East, holding a 70% share amongst key regions. The majority of flights in and out of Pakistan are operated by Emirates, Etihad, flydubai, Gulf Air, and Air Arabia, among other smaller players.
While Governmental reinforcements have accelerated the vaccination drive, Pakistan has a weary and stringent target to achieve the greatest number of inoculated populations.
All major airports in Pakistan have since commenced Rapid PCR testing, in line with international requirements for travel. The development of Rapid PCR testing has resulted in a much-needed relief to business and leisure travelers, who had been patiently waiting for the restrictions to be lifted.
Airlines are operating 50% of the pre-COVID19 schedule which is likely to continue until the end of December 2021. The string of financial losses continues. Airlines have had to pivot towards more unconventional approaches.
Pakistan Offers Ideal Incubation for Airline Business Continuity
Many airlines operating in and out of Pakistan cater to short-haul flights. Middle eastern carriers are on top of the game with the ability to utilize their hubs in Dubai, Abu Dhabi, and Manama, amongst others. During the pandemic, Pakistan and other nations in the region have become a saving grace for airlines providing short-haul and low-cost services.
Pakistan has provided a greenfield for airlines pivoting to a low-cost model. Major airlines such as Emirates, Etihad, and Gulf Air outsource passenger services and cargo services to third-party companies – most often referred to as ground handlers. A ground handler delivers check-in and baggage services to passengers and cargo handling services to consignees on behalf of the airline directly from Pakistani airports.
A big name among them is Gerry’s dnata, which originated as a joint venture in Dubai and was established in Pakistan some 27 years ago. The handler has enabled Abu Dhabi’s behemoth Etihad Airways to sustain through the pandemic by taking over its operations in 2020. Following this transition, Saudi Arabian Airlines switched its Peshawar and Multan cargo handling business to Gerry’s dnata.
Next came Pegasus Airlines, another Turkish carrier. Meanwhile, Azerbaijan’s Silkway West Airlines operating cargo charters out of Karachi, outsourced its cargo handling services to Gerry’s dnata.
While all this was going on during the peak of the pandemic, the UK’s popular Virgin Atlantic descended in Pakistan, offering direct flights to London and Manchester. Yet again another airline awarded its passenger and cargo handling business to Gerry’s dnata.
Come the middle of 2021, Sri Lankan Airlines moved its passenger handling and cargo handling operations to Gerry’s dnata.
Handling Airline Operations: How Gerry’s Dnata Sustained through COVID19
Gerry’s dnata, which has invested more than $50 million dollars in the last five years, including building the country’s first and the only fully automated AI and machine learning backed air cargo operating a warehouse, currently commands 80% of the market share.
And they continue to grow. Their latest coup d’état is Gulf Air – the state-owned flag carrier of the Kingdom of Bahrain. Gerry’s dnata’s fourth major win during COVID. No doubt an impressive feat for any business. But what makes this even more impressive is how nascent the ground services industry is in Pakistan. While in neighboring countries, multiple players contest desperately for a slice of the pie, in Pakistan just three companies make up the whole sector.
Back in 2018, the ground handler inaugurated a state-of-the-art automated cargo handling warehouse at Karachi airport, neighboring the old airport building. The warehouse, which spans over 75,000 sq. ft., is the largest facility to be owned by any Ground handler.
The facility is equipped with a dedicated Cold Storage, a GDP (Good Distribution Practice) certified system catering to temperature-sensitive goods such as Pharma. The storage offers temperatures between 15 to 25, 2 to 8, and -8 degrees Celsius – allowing safe and secure Pharma goods handling. The facility has played a significant role in the safe handling of COVID19 Rapid test kits, vaccines, and other life-essential goods arriving through air cargo in Pakistan.
Soon following in the footsteps of Karachi, Lahore cargo operations have been boosted with a New Export cargo terminal. The new facility supports a daily tonnage capacity increase of 270%, as the overall space increases from 20,000 sq. ft to 100,000 sq. ft. A timely initiative to enhance Mango exports from the country.
Among aviation aficionados, Gerry’s dnata has come to be associated with the ‘Gold Standard’ of service. The only thing that’s left to be seen is what remains of the competition.
