In a significant decision, the Supreme Court of Pakistan has withdrawn its earlier order requiring consultation before privatizing Pakistan International Airlines (PIA). The government is now moving ahead with its plans, aiming to attract investors and improve the airline’s financial health.
PIA’s Current Status
- Valuation and Debt: PIA’s debts have been reduced, with over PKR 650 billion in liabilities shifted to a separate holding company. This cleanup has prepared PIA for privatization with a starting government-set minimum price of PKR 85 billion for a 51–100% stake.
- Yearly Losses: The airline incurs losses of over PKR 70 billion annually, compounded by inefficiencies and legacy issues
- Fleet and Operations: PIA operates around 25 aircraft and maintains 170 weekly flights, serving 20 countries. Key routes include heavy traffic to Saudi Arabia
Privatization Efforts
The government is seeking to sell a 51% majority stake, retaining 49% ownership while transferring operational control to the buyer. Initially, six bidders were pre-qualified, including Fly Jinnah, Airblue, and Blue World City. However, challenges remain, as the only bid received so far, for PKR 10 billion, fell short of the set minimum price
Government’s Stance
The government emphasizes the urgency of privatization to reduce losses and meet IMF conditions under its economic reform agenda. Despite concerns from potential bidders about policy continuity and operational challenges, the government insists this move will revitalize the struggling airline
The Supreme Court’s decision has reignited hopes that PIA’s privatization will attract strong bidders and ultimately transform the airline into a profitable enterprise. However, the government’s ability to secure a competitive and credible deal remains under scrutiny.
A few days before good news surfaced about PIA’s access to European routes.
Pakistan International Airlines (PIA) has received clearance from the European Union Aviation Safety Agency (EASA) to resume flights to European destinations, marking the end of a four-year suspension. The ban was initially imposed in 2020 due to safety concerns following a PIA crash and issues with pilot licensing.
EASA has now expressed confidence in the oversight capabilities of Pakistan’s Civil Aviation Authority (PCAA), which implemented significant reforms, including a new aviation safety framework and professional leadership appointments.
PIA plans to restart European routes with Paris as the first destination and aims to expand to the UK, including cities like London, Manchester, and Birmingham.
