Ariana Airlines Rents Planes From Abroad

12 years ago | Posted in: Afghanistan, Business | 966 Views

At the Kabul International Airport, a number of planes belonging to Ariana Airlines, a goverment-backed company, can been seen covered and parked over in the corner. As the company faces challenges competing with larger foreign airlines, its own fleet has become increasingly reliant on planes rented from abroad.

The present state of Ariana Airlines has caused some experts to question whether or not it should continue to be subsidized by the Afghan government. Many believe it is time to turn Ariana over to the private sector.

Officials at Kabul International Airport reported that Ariana relies primarily on Pamir Airline planes and 320 Airbuses rented abroad.

“Currently, Ariana Airlines uses one of its own planes, three Pamir Airline planes given to Ariana and two 320 Airbuses, which were chartered,” said Muhammad Yaqub Rasooli, the head of Kabul International Airport.

Meanwhile, Ariana officials have maintained that despite challenging competition, the airline is doing much better than it was in previous years, with a 17 percent increase in sales.

“Considering the high cost of fuel in Kabul, we decided to rent smaller planes with lower cost instead of using our own large planes,” Ariana chief Naseer Ahmad Hakimi said. “Our rented planes have lower costs and this has increased our profits.”
Yet on the government’s side, there remain major concerns about the future of Ariana.

Hameedullah Farooqi, a Former Minister of Transport and Aviation, who is in favor of privatizing Ariana, said that government support has been wasted because the Airline has not been able to compete and has been operating at a loss. He advocated for reform.

“This is a question that government must be asked, considering that Ariana Airlines does not operate as a profitable company and is a loss to the people of Afghanistan – why is it not sold to the private sector?” Farooqi said. “The government can sell this company and use its assets transparently in other areas or the airline should be leased to gain its creditability.”

While Ariana Airline enjoys government loans and sponsored programs like free transportation for Hajji’s, this company is not using its own planes, but rather renting ones from abroad. Ariana officials may see that as a viable strategy, but many experts are wondering if the government should continue backing what they see to be a sinking ship.

Tolonews

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