Rayyan Air (Pvt).

Ltd
Proposal for Cooperation 2009-2018
Proposal for Cooperation

AIRLINE & ALLIED PROJECTS

Enabling Access to Fast Growing Markets:

• Pakistan Domestic & International

• Gateway to China & China to Middle East and
Africa Traffic
 CONTENTS
01 About Rayyan Air and current Status

Projects underway and business plan 02

03 Potential of target segments

Financial Workings 04
Implementation Modalities
05 To be discussed

06 Summary
 FOREWORD
• In today’s rapidly changing geo-strategic situation, it is vital
that these bonds be further strengthened
• Expanding collaboration in important fields such as
aviation is a very necessary
• Saudi Arabia and Pakistan enjoy a
very special bilateral relationship

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• The
字内容 two Islamic Countries are linked
by cultural, religious, commercial,
economic, political and strategic ties
字内容 内容 字内
• A Saudi equity holder or investor can gain exceptional
advantages from the Rayyan Air platform
• The integrated elements of the Rayyan Air Project are
commercially viable, mutually beneficial, long term and
flexible

These concepts are presented here for

your kind consideration
The Case for Cooperation

• Rayyan Air is honoured to offer the Concept of Cooperation and Sharing of Aviation Platform
• Alliances promote co-operation in a broad scale of commercial and operational areas
• An equity alliance would achieve an efficient cross-border merger
• Leading Airlines such as Delta (USA), HNA (China) and Etihaad (UAE) are following similar strategies
• This would support the international business expansion objectives of Saudi Investor / Aviation Company
• This strategic partnership will create an organization with enhanced capabilities and an unbeatable edge over current
Pakistani operators
• Would establish the direct presence of Saudi Arabia in a strategically important region
• This cooperation of Saudi Partner with Rayyan Air would create an AIR CARRIER (the CARRIER) that can:
o Access profitable routes and rapidly growing aviation markets, otherwise not possible, due regulations
o Reach the entire region, including Central Asia from Islamabad as a key hub
o Gain direct access to the booming Chinese market via Islamabad
• The Carrier shall reach international and domestic markets, in a high growth region
• The geographical location and Islamabad hub would maximize advantage to Rayyan Air, thus gaining significant edge over
other Saudi competitors Flynas, Saudi-Gulf, Al Maha Airways and even Saudia
 01PART

About Rayyan Air and

Current Status
 The Rayyan Air Platform
Other Approvals:
• Company Management: • PIFA Freight Forwarding
• Experience of all core aspects of commercial aviation • PATA Tour Operator
• Record of performance and deliverance as Charter Operator • Govt. Tourism Services License

• Company Licenses: Current Self-Ground

• Regular public transport (RPT) Handling Licensees :
• Charter license – Class II
• Self-ground handling License PIA
• Rayyan Kashgar Logistics Company-( Registered in China) Air Blue
• Rayyan Logistics & Trading Company (Pakistan approval OK to operate Trucking and Rayyan Air
• Bus Services between Islamabad and Kashgar and Islamabad, Central Asia and other Countries).
请替换文 请替换文 请替文字 请替换文 Self ground handling can
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• Operational Experience and Status: 字内容 内容 字内 save substantial revenue for
• Operated three B747 Freighter aircraft on own AOC during the period January 2010 till April 2014 the airline.
Later this service can be
• Operated two BN-2 (passenger) and one IL-76 (cargo) aircraft on own AOC
provided to other airlines.
• Operated a regular charter passenger service on Islamabad-Kashgar-Islamabad sectors 2013-2016
• China Government has signed agreement to resume air service from Islamabad to Kashgar, also Karachi to Kashgar with
further extension to Sharjah with frequency increase
• China Government has assured support for further flights to Dushanbe/Gwadar/Bishkek via Islamabad
• Regular Charter Services between Islamabad and Xi’an are ready for launch

• Company Mission & Objectives

• We are driven by a passion for aviation with the objective to provide Safe, Low Cost & Efficient Air Services
Approvals and Certificates
Approvals and Certificates
A Few Milestones of Rayyan Air
• A skilled and professional Management Team
• Record of performance and deliverance as a worldwide Charter Operator
• Proven Track Record of Handling Passenger and Air Cargo Charter Operations
• Rayyan Air has a Safety centered corporate environment
• The Company has successfully operated and managed a wide range of aircraft types

Rayyan Air Boeing 747 Freighter AP-BIB

receiving the traditional water cannon salute
after landing at Dubai World Central - Al
Maktoum International Airport (DWC), Dubai,
UAE, on June 27, 2010.
That was the first inaugural cargo flight to land
at the airport.
Rayyan Air Britten Norman BN-2 Islander
aircraft AP-BJJ, one of the two
passenger aircraft that operated 564
relief flights between Peshawar and
Parachinar in 2011
Rayyan Air IL-76 Freighter arriving at
Kashgar, China on December 9, 2010 from
Islamabad. This was the first ever
international Cargo flight to land at Kashgar
Airport
Rayyan Air Operations for
Rayyan Air has transported:
+18,000 UN Peace Keepers of 15 Nationalities across 4 Continents
Rayyan Air Operations have spanned the Globe:
Manila to Haiti & from Larnaca to Montevideo
Aircraft Operated:
Boeing-747 / 777 / 707 / 737; Airbus 310 / 320 / 321 / 319 & IL18 / IL76

COUNTRIES
SERVED
Pakistan
Nepal
Cambodia
Mongolia
India
Bangladesh
Ghana
Ethiopia
Jordan
Uruguay
Philippines
Haiti
Fiji
Rayyan Air Operations for

SOME DESTINATIONS
SERVED
Haiti: Port-Au Prince
East Timor: Dili
Sudan: El-Obeid

Khartoum
Nyala
El-
Fasher
Eritrea: Asmara
Asab
Sierra Leone: Freetown
Democratic Republic of Congo:
Kinshasa
Kisangani
Lumbumbashi
Kosovo: Pristina
Liberia: Monrovia
Ivory Coast:
Youmousokro
Abidjan

Numerous Innovations and Operational

Improvements were introduced
The Rayyan Air Logistics Concept
The Multi-Modal Gateway to Europe/Middle east /South Asia - 2010

2010
RAYYAN AIR’s Contribution to the China-Pak Economic Corridor - 2010

• Since 2005, Rayyan Air was working on developing a detailed logistics plan
• With Kashgar as Hub, it was clear that Chinese products could reach worldwide markets, with better cost affectivity than
Urumqi or other western ports, currently in use
• The detailed plan was presented to Kashgar Prefecture Government on 26th July, 2009.
• The plan was accepted and support was assured to link Kashgar with Islamabad for assisting trade & economy of
Xinjiang province
• Rayyan Air operated the first Cargo flight on Dec 9, 2010 but suffered a loss of Rs20 million

2010
RAYYAN AIR MULTI-MODE LOGISTIC PLAN – 2011
•Rayyan Air operated the first proven Cargo flight on Dec 9, 2010 but with a loss of Rs20 million
•The effort was acknowledged and an official invitation was issued by Shenzhen Free Zone in May 2011
•China National Logistic Cell was given a presentation to explain how China could benefit by making Kashgar as the bridge head for
its exports to Western markets
•Six months later, Rayyan Air was offered support to implement it’s concept , commencing with Kashgar-Islamabad connection
as Phase-1

2011
GENESIS OF CPEC – (Multimodal Logistics) Conceptualized in 2005.
( Implemented in August 2013)

11/20/2018

2013
 Suspension of Rayyan Air Operations
• Till April 2014, Rayyan air was successfully operating worldwide cargo operations as a leading regional charter carrier
• Rayyan Air contracted a project to transport commercial cargo from Moscow(Russia) to Damascus(Syria), while Syria was
under US sanctions. Though the US sanction did not apply to any non-US carrier, however, on strong objection of US, the
Pakistan Civil Aviation Authority (PCAA) suspended Rayyan Air operations

• During the suspension period, the company had to go through severe commercial and financial losses, due to premature
termination of lease of three (03) 747 aircraft

• The suspension was challenged in the courts of Pakistan and United States and Rayyan Air was honorably exonerated by
both the courts. Extract from judgment of Pakistan High Court is reproduced below:

“In view of hereinabove facts and circumstances of this case and the candid statement of the learned Standing Counsel and
representative of CAA, we are of the opinion that in the absence of any violation on Civil Aviation Laws or the terms of license
issued by the respondents in favour of petitioner, the impugned letter dated 28.3.2014 regarding suspension of charter
operations of M/s Rayyan Air (Pvt) Ltd., is without lawful authority which is hereby set aside.”

• Rayyan Air Clearance / Removal from Entity List of US Bureau of Industry & Security is reproduced below:

“This rule implements the decision of ERC to remove the following three entries from the entity list based on removal requests
received by the BIS: Numinen Oy, located in Finland; Rayyan Air, located in Pakistan, and AAG Makina
………………………………………………… Pakistan (1) Rayyan Air Pvt Ltd., House no 614 Street No 58 I-8/2 Islamabad Pakistan and Office
No 456, K street 57 I-8/3 Islamabad, Pakistan”
 Current Status

About Rayyan Air

and Current Status
Current Status of Rayyan Air
Full and Unconditional Clearance by Charter and Airline Licenses Cleared for Implementation
US Government by Pakistan Government
Present Status of Rayyan Air Licenses
• CAA Charter License
• To be Renewed
• CAA Regular Public Transport License
• To Be Renewed
• Rayyan Air AOC
• To be Renewed subject to renewal of Charter License and RPT
• Department of Tourism License
• Active
• PATA License
• To be Renewed
• Islamabad Chamber of Commerce and Industry Membership
• Active
• PIFFA License
• To be Renewed
• Trucking and Bus Service License - Rayyan Logistic Services International (Pakistan)
• Active
• Trade License - Rayyan Kashgar Logistics and Trading Services (China)
• Active
 02 PART

Projects underway
and business plan
 Growth Strategy of Rayyan Air
• Rayyan Air discontinued its B-747 Freighter operations in April 2015
• The company continued to conduct various aviation activities including regular charter services
• From August 2013 till March 2016, Rayyan Air operated regular air services between Islamabad and Kashgar, with A310 aircraft chartered
from PIA
• The Company is now poised to launch regular air services between Islamabad and Xi’an, with A320 aircraft chartered from PIA
• Rayyan Air expects to resume regular flights to Kashgar from both Islamabad and Karachi by March 2019, under an Agreement with the
Government of Kashgar, with A320 chartered from PIA
• Currently, efforts are underway to activate Charter and Airline Licenses of Rayyan Air
• The objective is to commence operations as a licensed air operator, in a pre-planned sequence
• Aircraft shall be inducted on lease to retain flexibility and minimize fleet build-up cost
• The phase-wise growth strategy shall ensure optimal use of resources and best utilization of assets
• Charter Operations shall be activated first and thereafter, regular airline operations under the RPT License of Rayyan Air shall be activated
• Umrah and Haj operations as well as other Charters to China shall be developed with own licenses
Phased Implementation of Rayyan Air Projects

• The Phased plan is to initially commence Charter operations, followed by Domestic RPT operations, and then
International RPT as a Low Cost Carrier
• Fleet planning is based on induction of leased narrow-body aircraft (A320 or 737-800)*
• The Rayyan Air business plan is depicted below:
Phased Implementation of Rayyan Air Projects
Phase-1 is centered on commencing flights between Islamabad and Kashgar, with aircraft chartered from PIA

Commencement Aircraft Type of Comments & Returns &

Time Frame Induction Operations Business Strategy Profit Sharing

START Immediately Charter A320 REGULAR CHARTER Flights to Xi’an • Frequency to be increased progressively from 2 flights per week upto 5 Total 3 year Project Returns – Two weekly Flights
from PIA flights per week • Projected Profit for 3 Years: $15 Million
With increased Cargo loads, one KHI-ISB-XIY • Increase to weekly The Rayyan Air strategy is to gain foothold in market
flight per week to be operated with • Subsidy Payments for 3 Years: $9 Million
XIY-ISB-KHI with low price tickets and extra facilities for Pax
Duration: PIA B777-200 • Financial security of the Project is ensured by guaranteed subsidy • Profit Sharing with Investor ____%
Initial 3 Years payments from Chinese Government
Extension +2 Yrs • This strategy has been successfully applied by Rayyan Air for over 3
Total 3 year Project Returns – Two -Five weekly Flights
years on Islamabad-Kashgar-Islamabad route
• With Ctrip and PIA booking System the flight will be accessible to all There is likely possibility to Incrementally increase the
• Xi’an is one of 13 emerging megacities of China and is the origin point of Number of flights as per our understanding with
both OBOR and CPEC
Chinese Government:
• The direct flight to Xi’an will greatly facilitate both Pakistani traders it
would also serve CPEC Personnel • Projected Profit for 3 Years: $ 36.26 Million
• Taking connections on PIA Gulf/Saudi network to ISB, Chinese working • Subsidy Payments for 3 Years: $ 19.14 Million
in Middle East will pay lowest price to reach Xi’an and Central China • Profit Sharing with Investor _____%
Phased Implementation of Rayyan Air Projects
Phase-2 is centered on activating own Charter License, induction of two aircraft and commencing Charter operations

Commencement Aircraft Type of Comments & Returns &

Time Frame Induction Operations Business Strategy Profit Sharing
START + 6 Months Lease 2 Aircraft: Commence PASSENGER • Projected Profit from Haj/Umrah: $3.4 Million
• Xi’an Operation would continue, and weekly frequency would be increased upto
CHARTER OPERATIONS 5 flights During first 6 Months Period
A320-200 / 737-800
• International Charters possible from start due prior satisfactory performance by • Projected Profit from Xian Ops: $4.1 Million
Rayyan Air During first 12 Months Period
Umrah / Haj Flights
• Focus to be kept on High Profit Making Umra and Haj Operations
To MED from ISB, LHE, KHI
• Tourism unit to be activated to promote and create group tour business
• Work with Askari Aviation to provide Charter flights for transport UN • Paid-up Capital for RPT: Rs 50 Million
Peacekeepers of PAK ARMY To be sourced from earnings of China Project
An Investment of USD 15-20 million
Required

• To enable rapid start up, the Rayyan Air strategy is to induct aircraft on wet lease initially
• Aircraft configuration: One class - All Economy
Phased Implementation of Rayyan Air Projects
Phase-3 is centered on activating own RPT License, induction of one more aircraft and commencing Domestic airline operations

Commencement Aircraft Type of Comments & Returns &

Time Frame Induction Operations Business Strategy Profit Sharing
START + 11 Months Lease 1 Aircraft: Commence DOMESTIC • Keep focus on High Profit Making Umra and Haj Operations • Projected Profit from Haj/Umrah: $6.8 Million
RPT OPERATIONS (Airline) • Use Charter to sustain Domestic RPT Operations During 12 Months Period
A320 / 737-800 • Projected Profit from Dom. RPT: $0.0 Million
• Operate Min RPT Flights on Trunk routes
• The local aviation sector is set to develop to mirror the growth of the During 6 Months Period
KHI-ISB-KHI country’s economy RPT Project is assumed at no Profit & no
KHI-LHE-KHI • Demand is rising with increasing middle classes Loss
• Register as Vendor with UN Logistics after inducting third aircraft for • Projected Profit from Xian Ops: $ 6.8 Million
KHI-GWD-KHI
International Charters During 18 Months Period
• Offer socio-economic flights for other carriers
• Start flights to GWD from ISB or KHI to provide end-to-end air connectivity for • Paid-up Capital for RPT: Rs 500 Million
CPEC To be sourced from earnings of Charter Operations

• Rayyan Air strategy is to start Regular Public Transport (RPT) operations with limited flights on Karachi-Lahore and Karachi-Islamabad routes
• Priority to be given to utilize aircraft on more profitable Umrah and Haj flights
• Convert aircraft from Wet Lease to Dry Lease within 6 months (as applicable)
• Regulations allow International RPT operations after one year of successful domestic operations
Phased Implementation of Rayyan Air Projects
Phase-4 is centered on induction of two more aircraft and commencing International airline operations

Commencement Aircraft Type of Comments & Returns &

Time Frame Induction Operations Business Strategy Profit Sharing
START + 12 Months Lease 2 Aircraft: Commence INTERNATIONAL • Operate Min Domestic RPT Flight routes • Projected Profit from Haj/Umrah: $10.2 Million
RPT OPERATIONS (Airline): During third 18 Months Period
A320 / 737-800 • Keep focus on High Profit Making Umra and Haj Operations • Projected Profit from Dom. RPT: $0.0 Million
• Establish new routes to China During third 12 Months Period
Operate Flights to China • Projected Profit from Int’l. RPT: $0.0 Million
• Explore new routes to CIS
ISB-XIY-ISB • With consolidation of routes and fleet, the projected RPT revenues would During third 6 Months Period
ISB-CGO-ISB equal Direct Operating Costs RPT Project is assumed at no Profit & no
• Aggressively follow up to gain high profit UN Logistics Business Loss
KHI-KHG-KHI
• Projected Profit from Xian Ops: $9.4 Million
ISB-KHG-ISB
During 24 Months Period
ISB-SHJ-ISB
 03PART

Potential of Target
Market Segments
Phase-I
Regular Flights between
‘ISLAMABAD & XI’AN
Connecting Capitals: XI’AN and ISLAMABAD
• At present there is no direct air connection between these two key cities of CPEC
• Xi’an has ideal location -Track railway, high speed railway and express way which can
be linked to every major city in china intersect in Xian
• 2 hrs of high speed range covering 410 million people and 15.4 trillion of economy
• 2 hrs of air range covering 760 million people and 29 trillion of the economy
• This would facilitate rapid movement of CPEC project personnel
• Facilitate travel of students and business people and trade activities
• Track railway, high speed railway and express way which can be linked to every major
city in china intersect in Xian
Connecting Capitals: XI’AN and ISLAMABAD
• Only three cities of each country are inter-connected with total 17 flights per week
• 8 flights weekly from China and 9 flights by Pakistani Airlines – too less capacity for available traffic. Catered by other
carriers.
• Businessmen spend extra time and money to reach manufacturers in the Central region

• The optimum solution is to

provide a flight between Xian and
Islamabad
• Rayyan Air –Direct flight will
have Edge over :
a) China Southern – Urumqi and
Guangzhou Connections Two
Peripheries
b) PIA – Serves Two Points.
Beijing and Tokyo
c) Air China – It touches two
airports in Pakistan
XI’AN Project in One Picture
Phase-II
Passenger Charter Operations

Phase-III
Domestic RPT Operations

Phase-IV
International RPT Operations
 WORLD AIR TRAFFIC TRENDS

INFOGRAPHICS
Growth and Change in Passenger journeys by Region
o ME/W. Asia leads Air traffic
577 m growth in the world
651 m 2.6 %
3.3 % o Global studies confirm steady
250 m
5.1 % traffic growth till 2034

o Air Freight Growth is

OPTION #5 concentrated in Asia and
559,752K
There are many Middle East
variations of there
passages of lore
o Air freight market is
328 m
expanding by 4.5%,
4.4 % 190 m 1753 m outpacing growth in world
4.9 % 4.9 % trade (4.0%)

In its forecast till 2034, IATA includes Pakistan in ‘the fastest growing markets’ and predicts annual
passenger growth % in Pakistan will be 7.5% compared with worldwide rate of 4.0%
Pakistan - Ideally Located at the Center of Highest Travel Growth

• Pakistan is situated at the heart of a developing region

• This region is consistently registering strong growth rate of commercial air traffic

IATA STATISTICS
• The annual growth rate of domestic traffic in Pakistan
is 9.9%, whereas the worldwide rate is 3.8%
• Pakistan is flanked by the Middle East and Asia-
Pacific regions which have annual growth rates of
4.9%

• For the same period Europe and America have growth

rates of 2.7% and 3.3% respectively
Geo-Commercial location- Pakistan/China (North South Traffic)

Beijing-Islamabad:3,875
Islamabad-Beijing:3,875
Beijing-Dubai:(Beijing-Islamabad) + (Islamabad-Dubai)
Beijing-Dubai: 3875+ 1954 = 5826
Total Beijing-Islamabad-Beijing-Dubai:13576
Geo-Commercial location- Pakistan/China (North South Traffic)

Islamabad-Beijing:3,875
Beijing-Islamabad:3,875
Islamabad-Dubai: 1954
Total: Islamabad-Beijing-Islamabad-Dubai: 9704
 LOCATION : Advantage of Islamabad/Lahore VS Middle East

Pakistan Based Carrier vs Other Middle Eastern carriers

• Middle Eastern Carriers have deeply cut into the Pakistani market
• They carry Pakistani traffic through their hubs to Europe and other global
destinations

An airline based at Islamabad is: ✓ Nearly 65% of the subcontinent air

traffic is westwards
• Most suitably located for domestic operations
✓ Pakistan is located in a better
• Best for tapping international traffic flows from the position to exploit traffic to west
from neighboring countries
main population centers of Pakistan
• Ideally located for East - West traffic from
neighboring countries.
• ISB / LHE are geographically better located than
Dubai, Abu Dhabi or Doha (home stations of
Emirates, Etihad and Qatar, the MEB3)

• This enables Less Time, Less Cost for operations

from ISB / LHE to Europe
LOCATIONAL BENEFITS-PAKISTAN VS INDIA,BANGLADESH,NEPAL ETC.

Pakistan 200 millions

India 1.35 billions
Bangladesh 161 millions
Nepal 28 millions
Bhutan 21 millions
Sri Lanka 800,000

Total Regional 1.76 billions

Hajj and Umrah
Passenger Charter Operations
 Hajj and Umrah

• Hajj and Umrah is one of the vital sectors with huge growth potential that will create business potentials and job
opportunities;
(Thanks to Saudis diversification strategy to increase revenue to compensate falling oil prices.)
• Saudi Arabia has extended Umrah season by one month from 15th Ramadan to 15th Shawwal which is likely to
continue in future as well.
• Population in Muslim countries continues to grow.
• The Hajj and Umrah quota is being increased and expected to be nearly doubled – (Pakistani Religious Minister)
• Last year more then 6.5 Million Muslims performed Umrah from around the world.
• For Umrah and Hajj operators, the opportunities and potential shall continue to increase.
Hajj and Umrah

Data Assumptions
Aircraft 3 X A321 Aircrafts
Operations 35 Weeks Less Hajj
Umrah – Pakistan Origins 4 Stations – KHI,LHE,ISB,PEW

Number of flights each station 4 flights a week

Avg monthly flying/Aircraft/Months 227BH
Total Expected Profit US $ 6,853,944
 CPEC Air
Connectivity
 • The Kashgar -Centric Concept
CPEC AIR CONNECTIVITY • Ideal Regional sky links

• CPEC is a game changing wonder of 21st

century
• It will play a key role in changing economic
and strategic future of Kashgar /Pakistan
and regional states
• While much has been talked about road,
rail, sea links of CPEC , one critical factor
remains unaddressed: AIR
CONNECTIVITY
• This should have been the first priority
• To address this shortcoming, Rayyan Air
has developed a comprehensive and
practicable proposal
• Our determined efforts are to make CPEC
Air Connectivity revolve around Xinjiang
province with Kashgar, Islamabad and
Gwadar playing key role as hub of this air
Network.
Rayyan Air Financial Projection – CPEC

Based on Three Flights per Week

Pakistan
Part -II Pakistan -China, CPEC Connectivity – China, CPEC Connectivity
Year 1: Year 2: Year 3:
Flights Routes 1- Karachi-Kashgar-Karachi Flights Routes 1- Karachi-Kashgar-Karachi Flights Routes 1- Karachi-Kashgar-Karachi
2- Kashagar-Islamabad-Kashgar 2- Kashagar-Islamabad-Kashgar 2- Kashagar-Islamabad-Kashgar
3- Kashgar- Sharjah-Kashgar (via Islamabad) 3- Kashgar- Sharjah-Kashgar (via Islamabad) 3- Kashgar- Sharjah-Kashgar (via Islamabad)
4- Addition Route shall be started for Pasni to
Connect Gwadar with China. Later when
4- Kashgar-Gwadar-Kashgar
Gwadar become operational, direct flights to
Gwadar shall be started.
5- Addition Route shall be started from China
to Central Asia.
Estimated Profit - Estimated Profit - Estimated Profit -
USD 3.89 million USD 5.25 million USD 5.25 million
Year 1: Year 2: Year 3:
Chines Govt. Chines Govt. Chines Govt.
USD 7.36 million USD 5.39 million USD 2.69 million
Assitance Assitance Assitance
Total Profit USD 11.25 million Total USD 10.64 million Total USD 7.94 million
Additional Routes financial effects are not Additional Routes financial effects are not
Total 3 Years USD 29.83 million
accounted for accounted for
UN Logistics
Operations
 Huge Potential of UN Logistics
• Provision of Air Transport Services to UN Logistics is a most lucrative business
• The scope and scale of the opportunity is reflected in the UN Procurement Division
allocation (2016):
• The Air Transportation Services budget for 2016 was USD 582 Million

➢ As PIA and Airblue Charter GSA, Rayyan Air has provided the bridge for PIA and Airblue to access the lucrative UN
Logistics business
➢ To PIA : +$90 million
➢ To Air Blue: +$50 million
➢ Rayyan Air is the only company in this region providing Air Transportation support to UN Troops.
➢ Our in-depth knowledge of UN Operations is based on a comprehensive (13 year) Experience.
➢ Pioneered the Letter of Assist (LOA) Procedure: Conceptualized Working with UN Logistics and Pak Army to
introduce LOA in 1994 for the movements of Pak UN troops in Somalia, Bosnia & Herzegovina, Haiti and later East
Timor.
Ideal Location of Pakistan for Regional UN PEACEKEEPERS
 Importance of Pakistan’s geo-strategic location

Pakistan is better located to

avail the potentials of the
countries mentioned.

Note: Two great benefits for

Pakistani operators:
a. Easy to get traffic rights from
these countries.
b. Pakistan is located between
South Asia and Saudi Arabia
and offers best financial
viabilities from these
countries
UN PEACEKEEPERS: The Current Scenario
• Total uniformed personnel to be transported by UN air chartered services in 2017/18 is approximate :
➢ Troops: 89,098
➢ Police: 12,611
➢ Total: 101,709
• These are mostly deployed in African countries, Haiti, Cyprus and Levant states (Lebanon, Syria, and
Israel)

• Rotation of troops is a year round activity

• Pakistan continues to be a major contributor to the UN Peacekeeping force

• Below are the countries where a Pakistani operator can exclusively exploit The Movements UN troops:
Bangladesh 7000 Expected Financial Benefits:
India 7600 ✓ Located very close to the a. Total UN peacekeepers: 101,709 (USD
Indonesia 2700 originating countries hence huge 582m)
Malaysia 876 reduction in positioning and de- b. Number of troops within Rayyan Air
Nepal 5200 positioning costs comparing the exclusive range: 33,026
Pakistan 7500 competitors. (USD 189m)
Republic of Korea 650 c. We can secure at least 50% of these troops
✓ The Proposed Airbus 321 ideally
Sri Lanka 500 16,500
Philippines 150
suits the transportation due to its
(USD 95m)
Cambodia 850 comparatively more volumetric
cargo space and optimal range d. Average profit: 15% of USD 95m
TOTAL 33026
USD 14.25m
factor.
UN PEACEKEEPERS: The Current Scenario
• Total uniformed personnel to be transported by UN air chartered services in 2017/18 is approximate :
➢ Troops: 89,098
➢ Police: 12,611
➢ Total: 101,709
• These are mostly deployed in African countries, Haiti, Cyprus and Levant states (Lebanon, Syria, and
Israel)

• Rotation of troops is a year round activity

• Pakistan continues to be a major contributor to the UN Peacekeeping force

• Below are the countries where a Pakistani operator can exclusively exploit The Movements UN troops:
Bangladesh 7000
✓ Located very close to the Expected Financial Benefits:
India 7600
originating countries hence huge a. Total UN peacekeepers : 101,709
Indonesia 2700
Malaysia 876 reduction in positioning and de- b. Number of troops within Rayyan Air
Nepal 5200 positioning costs comparing the exclusive range : 33026 = 32.47%
Pakistan 7500 competitors. c. Revenue Percentage = 32.47 % of 582
Million = UD $189 Million
Republic of Korea 650
✓ The Proposed Airbus 321 ideally
Sri Lanka 500 d. Average profit = 15% of 189 Million =
suits the transportation due to its
Philippines 150
comparatively more volumetric US $28.35 Million
Cambodia 850
TOTAL 33026
cargo space and optimal range
factor.
UN Logistics
Operations
Regular Schedule Airline Operations

• With three aircrafts on its AOC, the airline is entitled to carry out schedule operations (RPT-Regular Public
Transport)
• Rayyan Air can start its local operations on limited basis between major trunk routes, that is Karachi-Lahore and
Karachi-Islamabad
• After one year successful domestic operations, Rayyan Air would be entitled to operate international scheduled
operations, besides new international routes, it will help airline to increase its revenue on Umrah flights.
 04 PART

Conclusions
The Need for Airline Co-operation

• Today’s competitive market environment makes it difficult for any company to survive without
partners
• Even the biggest airlines are entering into strategic airline alliances with their competitors
• Alliances promote co-operation in a broad scale of commercial and operational areas
• With further interaction, concurrence on ways and means to move forward to achieve a
1
feasible and mutually beneficial venture would be possible.
 PROSPECTS FOR COLLOBORATION
▪ Rayyan Air is a reliable partner with record of commitment and deliverance

▪ Rayyan Air has local aviation expertise

▪ Key factors are favorable for launch of a new airline in Pakistan:

o Available capacity is not sufficient for passenger demand and growth rate
o Fuel prices are at low levels
o Economic and political factors are conducive

▪ Rayyan welcomes the SAUDI GROUP to jointly evaluate the Airline project

▪ The project offers numerous potential benefits for the SAUDI GROUP

▪ If deemed acceptable, modalities for future cooperation can be discussed

▪ With firm commitment and decisive actions, the first flight could be anticipated within 4-6 months

▪ The goal of Rayyan Air to deliver safety and better quality at an affordable price would guarantee success
CONCLUSION
 Modalities for future cooperation can be drawn up after further discussions
 The parameters for a mutually beneficial Business relationship can be drafted, to include:
o MOU for Commitment
o Detailed Agreements defining Scope and Minimum duration for engagement
o Estimation of Equity & Technical Needs
o Profit sharing formulae
o Funding, fleet plan and routes
o Due Institutional Processes
o Description of Management Structure - Decision making
o Organogram / Staffing
RAYYAN AIR IS POISED FOR ‘FAST
TRACK’ LAUNCH OF CHARTER AND
RPT OPERATIONS
THE SAUDI INVESTMENT MANAGEMENT MAY
LIKE TO EVALUATE THIS PROPOSAL
Proposal for Cooperation

Financial Workings
Analysis of the Opportunity Market Share Expectations
Implementation Modalities
Thank you