The government has set limitations on the possible buyer of state-owned Pakistan International Airlines (PIA), preventing the investor from reselling the airline for the first three years after acquisition and forcing it to add 20 aircraft to the fleet.
Speaking to local media, Arif Habib, Chairman of Arif Habib Corporation, one of the pre-qualified bidders for the airline, stated that the government’s business plan following the privatization of PIA indicated that the buyer would be unable to resell it for at least three years.
Earlier, when discussing the business strategy with a group of journalists, Habib stated that the new buyer will increase PIA’s fleet by at least 20 aircraft.
Currently, the airline manages a fleet of 34 long and short-haul aircraft. PIA owns 20 aircraft, with the remainder bought on dry lease. Furthermore, the airline employs 10,323 people, resulting in an average of 304 workers per aircraft.
He predicted that the possible bidder would choose to purchase 75% of PIA’s stock in order to establish majority control of the airline.
Habib, who leads a conglomerate of industries that includes fertiliser, cement, and steel production, expressed hope that the PIA bidding process will be completed in less than a month, by October 1, 2024.
The Ministry of Aviation informed the National Assembly Standing Committee on Aviation in July of PIA’s financial performance, noting that the airline reported an operational profit of Rs3.187 billion for the January–December 2023 period.
The Ministry also disclosed that the airline’s net loss for the same period was Rs103.90 billion.
