o What’s your name?

o Where did you study?

o Why did you select aviation?
o What are your hobbies?
o What is your dream job?

✓ Intro by Instructor
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PAF-KIET – Department of Aviation Management
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PAF-KIET – Department of Aviation Management
• Timing – Punctuality (-ve marks for being late)
• Entry Exit from class (no permission required)
• Talking in class (-ve marks for talking amongst yourself)
• Quizzes – every week (all quizzes are graded)
• Class participation (+ve marks for serious participation)
Ask Questions (+ve marks for good questions)
• Presentations (are mandatory and graded)
• Read Current Aviation News (to be discussed everyday)
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PAF-KIET – Department of Aviation Management
Quizzes/Class Participation = 35
Mid Term = 25
Final Term = 40

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PAF-KIET – Department of Aviation Management
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PAF-KIET – Department of Aviation Management
 Hubs on the rise

• Preliminary figures collated by Cirium covering the biggest 100 airports in the
world show passenger numbers increased by 5.3% during 2018
• While that is slightly down on the 5.6% rise across the largest gateways the
previous year, it still represents healthy growth

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PAF-KIET – Department of Aviation Management
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PAF-KIET – Department of Aviation Management
 JOINING THE CENTURY CLUB
• Delta Air Lines' main hub at Atlanta Hartsfield-Jackson International remains the largest
airport in the world. It handled 107.4 million passengers in 2018, an increase of 3.3%
• Beijing Capital became the second airport in the world to pass the 100 million passenger
mark. The airport enjoyed a further 5.4% rise in traffic as passenger numbers reached
100.9 million. That comes in a big year for the Beijing airport system, as the city's new
Daxing facility is set to open later in 2019
• Beijing and another Chinese hub, Shanghai Pudong, were the only two of the 10 biggest
airports to report passenger growth in excess of 5% last year. Passenger levels rose 5.8%
at Pudong, the ninth-biggest airport in the world, handling just over 74 million passengers
• Los Angeles and Tokyo Haneda were the only airports among the top 10 to change
positions. Passenger growth of 3.5% at Los Angeles to 87.5 million ranked the US hub
fourth-biggest in the world, putting it ahead of Haneda, which handled 87.1 million

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 JOINING THE CENTURY CLUB
• Dubai International is the third-biggest airport in the world, catering for just over 89
million passengers last year. But this marked growth of only a little over 1% – the slowest
rate at the airport for well over a decade
• Airports in Asia-Pacific account for more than one-third of the top 100and the largest
share of passengers, with more than 1.7 billion. The next biggest category, North
American airports, which accounted for 1.3 billion passengers, has 26 hubs in the top 100
• Europe comprises 29 of the 100 biggest facilities, which between them account for almost
1.2 billion passengers. There remain no African airports among the 100 biggest in the
world
• There are 24 US airports among the 100 biggest, the next-highest number for a country
being the 17 Chinese hubs that feature in the top 100

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PAF-KIET – Department of Aviation Management
 RAPID RISERS
• Figures show that 11 of the 100 biggest airports boosted passenger numbers at a double-
digit rate in 2018, including a 29% jump at Bengaluru's Kempegowda airport. It handled
32.3 million passengers, placing it 65th in the rankings
• The recovery in Turkish tourism after the challenges of recent years was again evident in
passenger growth of more than one-fifth at Antalya airport in 2018, reaching a total of
31.6 million
• Moscow Sheremetyevo International airport, which added 23 new routes and six carriers
during 2018 – recorded the third-highest growth rate of leading hubs last year. Passenger
numbers climbed 14% to over 45 million at the Russian airport, ranking it in 41st place in
the table for 2018

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 RAPID RISERS
• Figures show that 11 of the 100 biggest airports boosted passenger numbers at a double-
digit rate in 2018, including a 29% jump at Bengaluru's Kempegowda airport. It handled
32.3 million passengers, placing it 65th in the rankings
• The recovery in Turkish tourism after the challenges of recent years was again evident in
passenger growth of more than one-fifth at Antalya airport in 2018, reaching a total of
31.6 million
• Moscow Sheremetyevo International airport, which added 23 new routes and six carriers
during 2018 – recorded the third-highest growth rate of leading hubs last year. Passenger
numbers climbed 14% to over 45 million at the Russian airport, ranking it in 41st place in
the table for 2018

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 Low-cost and leisure traffic helped deliver
double-digit growth at European airports
Athens, Milan Malpensa and Vienna, while
Chinese airports Zhengzhou Xinzheng and
Nanjing Lukou logged growth of 13% and 11%
respectively

Sao Paulo Guarulhos and Fort Lauderdale were

the only Latin American and North American
airports to record double-digit growth in the top
100 last year

Passenger numbers fell at just five of the 100

biggest airports last year

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PAF-KIET – Department of Aviation Management
 Passengers increased 14% at
Moscow’ Sheremetyevo

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PAF-KIET – Department of Aviation Management
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PAF-KIET – Department of Aviation Management
PAF-KIET – Department of Aviation Management
PAF-KIET – Department of Aviation Management
PAF-KIET – Department of Aviation Management
PAF-KIET – Department of Aviation Management
PAF-KIET – Department of Aviation Management
 US unit terminals: back to the future?
• The pressing need for terminal space means some of the USA's biggest airports are once again favouring
projects controlled by airlines – but the trend is not popular with everyone
• The unit terminal is back. Some of the busiest airports around the USA are engaging their biggest tenants,
airlines, to help them keep up with the pace of growth through major building programmes
• A who's-who of US carriers, from Alaska Airlines to Delta Air Lines and Southwest Airlines, are investing
their own cash in major terminal projects at airports on each coast
• "We're playing catch up," Shannon Holden, head of corporate real estate at Delta, said on the Atlanta-based
carrier's airport investments in August 2017. "It gives us an opportunity to think forward and be very
progressive on how we build our facilities so we're not building for today, but we're trying to build for
tomorrow"
• At the time, Delta had just broken ground on its $3.9 billion redevelopment of terminals C and D at New
York LaGuardia airport, and was preparing to begin work on its $1.8 billion upgrade of terminals 2 and 3 at
Los Angeles International airport (LAX)
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PAF-KIET – Department of Aviation Management
 OWN STRUCTURES
• Unit terminals had their heyday in the 1960s and 1970s, when carriers ranging from
American to Braniff International Airways and TWA designed and built their own
structures at airports. The concept ultimately fell out of fashion as air traffic grew and
hub-and-spoke networks became the standard, with the majority of airports undertaking
capital projects themselves today
• "The ego and vanity that existed at the dawn of the jet age when airlines wanted
terminals as monuments to themselves has given way to a much more pragmatic
approach," says Henry Harteveldt, president and travel industry analyst at the
Atmosphere Research Group. "Airlines realised they don't necessarily need a separate
building but can customise their gate and boarding areas"
• Where airlines are building their own terminals, namely LAX and the New York area
airports, have a history of unit terminals creating a potential path-of-least-resistance for
continuing with the model
• https://reader.flightglobal.com/publications-dist/1264/81157/2495/26587/article.html
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PAF-KIET – Department of Aviation Management
 Pivotal opening for Istanbul airport
• Conceiving of, building and bringing a hub into operation is an achievement
on its own. But wider factors mean the toughest task may be ensuring the
facility fulfils its potential
• Operations began in earnest at Istanbul's new airport on 6 April, following a
series of delays and a "soft" opening in October last year
• An initial capacity of 90 million passengers makes it already one of the
biggest airports in the world – and there are plans for that figure to more
than double
• But while there will be relief and celebration that the airport has finally
become fully operational, the economic and political situation in Turkey
suggests it might be a bumpy ride towards achieving any mega-hub aims
• https://reader.flightglobal.com/publications-dist/1264/81157/2495/26591/article.html
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Airport-wise Market Share Passenger Traffic 2017-18
Domestic Market Share International Market Share Total Market Share
Karachi 3,074,413 42.0% 4,193,169 27.5% 7,267,582 32.3%
Islamabad 1,665,157 22.8% 3,413,548 22.4% 5,078,705 22.6%
Lahore 1,241,173 17.0% 3,790,684 24.9% 5,031,857 22.4%
Peshawar 218,679 3.0% 1,359,640 8.9% 1,578,319 7.0%
Multan 167,254 2.3% 1,171,925 7.7% 1,339,179 6.0%
Sialkot 43,288 0.6% 746,755 4.9% 790,043 3.5%
Faisalabad 115,442 1.6% 440,496 2.9% 555,938 2.5%
Quetta 345,688 4.7% 71,834 0.5% 417,522 1.9%
Sukkar 114,081 1.6% 0.0% 114,081 0.5%
R Y Khan 64,927 0.9% 22,414 0.1% 87,341 0.4%
Skardu 60,871 0.8% 0.0% 60,871 0.3%
Turbat 34,954 0.5% 19,580 0.1% 54,534 0.2%
Gilgit 38,179 0.5% 0.0% 38,179 0.2%
Bahawalpur 34,492 0.5% 0.0% 34,492 0.2%
Gwadar 27,916 0.4% 6,068 0.0% 33,984 0.2%
Chitral 8,467 0.1% 0.0% 8,467 0.0%
Others (15) 62,588 0.9% 0.0% 0.0%
Total 7,317,569 100.0% 15,236,113 100.0% 22,491,094 100.0%
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PAF-KIET – Department of Aviation Management
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PAF-KIET – Department of Aviation Management
 Airport-wise Market Demand Int'l Passengers 2017
22,414 19,580
440,496 71,834 6,068

746,755
Karachi
1,171,925 Islamabad
4,193,169
Lahore
Peshawar
1,359,640
Multan
Sialkot
Faisalabad
Quetta
R Y Khan
3,790,684
3,413,548 Turbat
Gwadar

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PAF-KIET – Department of Aviation Management
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PAF-KIET – Department of Aviation Management
Airport-wise Cargo Market Share 2017-18 (Tons)

Domestic Market Share International Market Share Total Market Share

Karachi 37,539 49.2% 101,414 41.1% 138,953 43.0%
Lahore 26,745 35.1% 78,273 31.7% 105,019 32.5%
Islamabad 10,289 13.5% 45,892 18.6% 56,181 17.4%
Peshawar 527 0.7% 7,118 2.9% 7,646 2.4%
Multan 84 0.1% 7,030 2.8% 7,114 2.2%
Sialkot 42 0.1% 7,225 2.9% 7,268 2.2%
Faisalabad 339 0.4% 10 0.0% 349 0.1%
Quetta 602 0.8% 0.0% 602 0.2%
Sukkar 2 0.0% 0.0% 2 0.0%
R Y Khan 12 0.0% 2 0.0% 14 0.0%
Skardu 17 0.0% 0.0% 17 0.0%
Turbat 22 0.0% 3 0.0% 25 0.0%
Gilgit 4 0.0% 0.0% 4 0.0%
Bahawalpur 0.0% 0.0% 0.0%
Gwadar 2 0.0% 2 0.0% 5 0.0%
Chitral 2 0.0% 0.0% 2 0.0%
D G Khan 1 0.0% 0.0% 1 0.0%
Total 76,229 100.0% 246,969 100.0% 323,202 33100.0%
PAF-KIET – Department of Aviation Management
Airport-wise Mail Market Share 2017-18 (Tons)
Domestic Market Share International Market Share Total Market Share
Karachi 201 49.6% 12,014 95.5% 12,216 94.1%
Islamabad 140 34.6% 362 2.9% 502 3.9%
Lahore 63 15.6% 198 1.6% 261 2.0%
Peshawar 0.0% 0.0% 0.0%
Multan 0.0% 0.0% 0.0%
Sialkot 0.0% 0.0% 0.0%
Faisalabad 0.0% 0.0% 0.0%
Quetta 1 0.2% 0.0% 1 0.0%
Sukkar 0.0% 0.0% 0.0%
R Y Khan 0.0% 0.0% 0.0%
Skardu 0.0% 0.0% 0.0%
Turbat 0.0% 0.0% 0.0%
Gilgit 0.0% 0.0% 0.0%
Bahawalpur 0.0% 0.0% 0.0%
Gwadar 0.0% 0.0% 0.0%
Chitral 0.0% 0.0% 0.0%
D G Khan 0.0% 0.0% 0.0%
Total 405 100.0% 12,574 100.0% 12,981 100.0%
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PAF-KIET – Department of Aviation Management
 Annual Domestic Passenger Growth Rate
15.0%

10.0% 9.5%
9.2%
8.1%
6.4%
5.0% 5.5%
3.0% 3.2%
1.9%
0.0%

-5.0% -5.4%
-7.8%
-10.0%
CAGR 1.6% -12.1%

-15.0%
2007-08 2008-09 2009-10 2010-11 2012-11 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Series1 9.2% -5.4% 8.1% 5.5% -7.8% 3.0% 6.4% -12.1% 9.5% 3.2% 1.9%
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PAF-KIET – Department of Aviation Management
 Reasons for Slow Growth

• Compound Annual Growth Rate (CAGR) of just 1.6% on domestic sector for last
12 years presents rather a bleak picture of domestic passengers’ growth rate
• Other emerging markets in Asia-Pacific regions has had much higher CAGR
figures—China 10% (2009-2018), Indonesia 10.26% (2005-2017) and India 13.91%
(2006-2018)
• There are several reasons for Pakistan’s this rather very low CAGR 1.6% between
2006 and 2018, on domestic sector, including but not limited to homeland
security situation, low per capita GDP, and uneven distribution of national wealth
among its citizens

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 Reasons for Slow Growth

• About 99% of our population cannot afford air travel. Those who do get a chance,
are either government employees or that of multinationals
• The figure of about 7.5 million passengers per annum on domestic sector, when
analyzed critically is reduced to just a few hundred thousand individuals, and not
7.5 million as the figure indicates.
• Firstly, every passenger on domestic sector is counted four times when he/she
travels by air, i.e. departure from Karachi, arrival at Islamabad, departure from
Islamabad, and finally arrival back at Karachi. Secondly, the same businessmen
and government officials travel very frequently up and down the country

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 Annual Int'l Passenger Traffic Growth Rate
20.0%

18.0%
17.4%
CAGR 4.8%
16.0%

14.0%

12.0% 12.1%
11.3% 11.3%
10.0%

8.0%
7.7% 7.6%
6.0%
5.4%
4.0% 4.2% 4.0%
CAGR 7% 2.9%
2.0% 1.9%

0.0% 0.0%
2006-07 2007-08 2008-09 2009-10 2010-11 2012-11 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Series1 12.1% 5.4% 4.2% 1.9% 11.3% 4.0% 11.3% 7.7% 17.4% 7.6% 382.9%
PAF-KIET – Department of Aviation Management
 Excellent Growth of International Passenger Traffic

• The figure of 7% (CAGR) on international sector over a period of 12 years is a

good one for a country that has had almost zero inward tourism, due to negative
security perception. Almost all the international passengers consisted of Pakistani
expats, and to some extent Pakistani businessmen & outward tourism
• Other emerging markets in the region experienced different CAGR figures—China
15.1% (2009-2018), Indonesia 6.5% (2013-2017), and India 9.36% (2006-2018)
• Pakistan could have achieved even higher growth rates provided it was not beset
with law and order situation in the country for the foreigners

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 Annual Total Passenger Traffic (Dom + Int'l) Grwoth Rate
16.0%
14.7%
14.0%
12.0%
10.7%
10.0%
9.3%
8.0%
6.0% 5.9% 6.1%
4.0% 3.6%
3.5%
2.0% 2.5% 2.6%

0.0% 0.0% 0.4%

-0.2%
-2.0%
2006- 2007- 2008- 2009- 2010- 2012- 2012- 2013- 2014- 2015- 2016- 2017-
07 08 09 10 11 11 13 14 15 16 17 18
Series1 10.7% 0.4% 5.9% 3.5% 2.5% 3.6% 9.3% -0.2% 14.7% 6.1% 2.6%

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PAF-KIET – Department of Aviation Management
 The overall passenger traffic
2016 2036 CAGR growth of 4.8% CAGR—
domestic and International
China 579 1500 4.9% passengers put together—does
US 699 1100 2.3% not look bad, when compared
India 141 478 6.3% with other markets

Indonesia 120 355 5.6% IATA estimates CAGR of 3.5%

Turkey 77 196 4.8% between 2016 and 2036. Other
markets
Asia-Pacific 4.8%
Other emerging markets are
expected to experience much
higher growth rates than global
average in 20 years
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PAF-KIET – Department of Aviation Management
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PAF-KIET – Department of Aviation Management
Thank You

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