The airlines, filing passengers fare for sales from Pakistan will establish in USD from August 12, 2019 and IATA consolidated Exchange Rate (ICER) will be considered to convert the USD fare amount to the PKR equivalent on regular basis. Talking to Business Recorder, representatives of foreign airlines said that all foreign and local airlines, operating from Pakistan on international routes, had requested the IATA for said decision, due to unstable PKR. Replying to a question, they said that prior to this decision, they used to quote passengers fares for summer and winter seasons to the head offices in PKR and the same then was converted in USD by the head offices but when it was remitted, it cost the airline, due to rupee depreciation.
"For instance, an airline quotes Rs. 110000 as passenger fare for economy class for the Karachi-New York flight for summer season to its head office at the exchange rate of Rs. 140, which is equivalent to almost USD 800 but when it remits the exchange rate rose to Rs. 160 so the airline incurred the loss of USD 100 on each ticket," they apprised.
Keeping the said in view, the airlines have requested the IATA to allow establishing ticket fares and add-ons in US dollars in order to avoid such unexpected losses, they maintained. Answer to another question, they said that from August 12, 2019, airlines would establish ticket fares and add-ons not in PKR but in US dollars on the basis of current exchange rate; adding that that this development would have no impact on billing and settlement plan (BSP), Pakistan remittance procedures and airlines would continue to pay BSP billing in PKR.