Punjab Government Approves Air Punjab Airline — Rs 1 Billion Funding Requested for Takeoff

The Punjab government has formally approved the establishment of its own provincial airline under the name “Air Punjab”, marking a significant step toward transforming the region’s aviation and transport infrastructure. According to official sources, a funding request of Rs 1 billion has been submitted to the provincial Finance Department to initiate the first phase of the project.

The airline will operate under a public-sector corporate model, with plans to lease five aircraft for initial operations. Once operational, Air Punjab will become Pakistan’s first provincial airline, positioning Punjab as a regional aviation hub while reducing dependence on federal carriers such as PIA, AirSial, and AirBlue.

What Is Air Punjab?

Air Punjab is an upcoming government-backed commercial airline being developed by the Punjab administration to serve both domestic and regional passenger routes. Instead of relying solely on the national carrier, the provincial government aims to build an independent aviation platform to improve connectivity between Punjab’s major cities and underserved destinations.

Officials have indicated that Lahore will likely serve as the primary base, with Multan, Faisalabad, Bahawalpur, and Sialkot being considered as potential secondary hubs. The long-term plan includes international connectivity to Gulf destinations such as Dubai, Jeddah, Doha, and Sharjah, which have high passenger demand from Punjab-based expatriates.

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Funding and Operational Structure

The working committee overseeing the project has submitted a demand for Rs 1 billion in initial funding to cover setup costs, regulatory requirements, staffing, and lease security for aircraft.

While the government will retain majority ownership, sources suggest that private-sector partnerships and PPP models may be explored for long-term sustainability. The possibility of outsourcing ground handling and cabin services to aviation contractors has also been discussed.

Fleet Strategy — Five Aircraft to Be Leased

Instead of purchasing new aircraft, the Punjab government plans to lease five planes from private leasing companies. Discussions are reportedly underway with international aircraft lessors, with ATR 72, Airbus A320, and Embraer E-Jets being considered based on cost, operational efficiency, and runway compatibility in Punjab’s mid-tier airports.

This leasing model will reduce upfront capital expenditure while allowing faster deployment of services once regulatory approval is granted.

CAA Licensing and Regulatory Progress

The Punjab government has submitted an application to Pakistan’s Civil Aviation Authority (CAA) for an official Air Operator Certificate (AOC). Once approved, Air Punjab will be legally permitted to operate both passenger and cargo flights.

Additionally, the government is preparing to establish an Air Transport Board or Aviation Authority at the provincial level to oversee compliance, route allocation, and operational policies.

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Expected Routes and Services

While the final route map is yet to be announced, internal proposals indicate an initial focus on:

Air Punjab is expected to operate as a hybrid low-cost carrier, offering competitive fares with flexible service options depending on passenger demand.

Can Air Punjab Compete with PIA and Private Airlines?

Pakistan’s aviation sector is currently dominated by PIA, AirBlue, SereneAir, Fly Jinnah and AirSial. However, analysts argue that there is significant untapped demand from second-tier cities, where private airlines operate limited flights.

Air Punjab may fill this supply gap, especially on religious travel, labour routes to the Middle East, and short-haul commuter flights within Punjab. If executed correctly, it could reduce travel times, boost tourism, and ease pressure on road transport.

Economic and Employment Impact

The project is expected to generate hundreds of direct jobs in aviation operations, maintenance, and administration, along with thousands of indirect jobs through hospitality, logistics, and airport services.

Moreover, enhanced connectivity could boost tourism in northern Punjab, industrial transport in Faisalabad, and trade linkages in Multan and Sialkot.

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Expert Opinions — A Bold Move, But Execution Will Be Key

Aviation experts have welcomed the initiative but cautioned that financial discipline and professional management will be critical for long-term success.

“Government-run airlines often struggle due to mismanagement. Air Punjab must be run like a business, not a bureaucracy,” said a former PIA official.

Others argue that a provincial airline could become a model for Sindh or Khyber Pakhtunkhwa, if successful.

Conclusion — A High-Stakes Takeoff

The approval of Air Punjab marks a milestone in Pakistan’s aviation landscape, signalling greater provincial autonomy in commercial infrastructure development. If licensing, leasing, and operational plans proceed smoothly, the airline could begin flight operations within the next 12 to 18 months.

Whether Air Punjab becomes a disruptive success or a bureaucratic burden will depend on transparent leadership, efficient financial planning, and competitive route strategy. The coming year will determine whether Punjab is ready to launch its wings into the sky — or remain grounded in paperwork.

Air Punjab Airline Frequently Asked Questions (FAQs)