Ayesha Mir

ISLAMABAD: Pakistan International Airlines (PIA) is set for a major fleet expansion and service overhaul as its new private owners map out an ambitious plan to grow the national carrier from 18 operational aircraft to 60 within five years, following the formal signing of <a href="https://www.pakistantv.com/article/pia-revival-to-ride-on-talent-global-expertise-and-strategic-growth-arif-habib" style="color: rgb(0, 0, 0);">privatization</a>&nbsp;agreements. Speaking with Pakistan TV Digital,&nbsp;Arif Habib, chairman of the consortium that acquired a <a href="https://www.pakistantv.com/article/all-eyes-on-pia-as-pakistan-begins-highstakes-privatization" style="color: rgb(0, 0, 0);">controlling</a> stake in PIA, said the immediate focus will be on restoring aircraft already grounded, expanding capacity through leased planes, and placing long-term orders with major manufacturers to rebuild the airline&rsquo;s network and competitiveness. A consortium led by the Arif Habib Group recently acquired a 75%&nbsp;stake in PIA, investing <a href="https://www.pakistantv.com/article/pia-privatization-concludes-with-135-billion-rupee-winning-bid-after-bidding-war" target="_blank">Rs135 billion</a> ($482 million) through a structured,&nbsp;competitive bidding process. The deal values the national carrier at Rs180 billion ($643 million) and marks a significant step in revitalizing the airline, which has faced financial challenges in the past. &ldquo;By the end of the current year, we will be able to take the fleet from 18 aircraft to 24,&rdquo; Habib told Pakistan TV Digital. &ldquo;Within three years, we plan to increase it to 38 aircraft, and within five years, we are targeting a fleet of 60 aircraft.&rdquo; The expansion plan comes as the government formally concluded the legal phase of PIA&rsquo;s privatization, signing the share purchase and shareholders&rsquo; agreements with the winning consortium. Muhammad Ali, chairman of Pakistan&rsquo;s Privatization Commission, said the transaction marked a turning point for an airline that had been a sustained burden on public finances. <div class="fr-embed youtube-embed"><iframe src="https://www.youtube.com/embed/HXGmRNl5zrE" title="Privatization Commission chief explains how PIA handover is underway" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="" style="width: 100%; height: auto; aspect-ratio: 16 / 9; max-width: 100%; display: block;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</iframe>&nbsp;</div> &ldquo;The bidding was completed on Dec. 23, but after that, we needed time to finalize complex legal agreements and meet several conditions,&rdquo; Ali said. &ldquo;Today, the agreements are signed, and the handover will take approximately 90 more days.&rdquo; Ali said PIA had incurred average annual losses of around Rs50 billion ($179 million) over the past decade, with losses totaling roughly Rs650 billion ($2.33 billion) ultimately borne by taxpayers. &ldquo;Now, the government is not responsible for any loss,&rdquo; he said. &ldquo;Inshallah, the private sector management will make it more efficient and profitable.&rdquo; Habib said the consortium&rsquo;s strategy recognizes the tight global aircraft market, where new plane deliveries are currently projected several years out. &ldquo;If you order a new aircraft today, delivery is available around 2031 or 2032,&rdquo; he said. &ldquo;We are in negotiations with Boeing and Airbus so that, alongside new orders, we can acquire five- to ten-year-old aircraft on lease until the new planes arrive.&rdquo; In parallel, the new owners plan to revive aircraft currently out of service. &ldquo;Within six to eight months, we believe we will be able to bring back about eight aircraft that are not operational at the moment,&rdquo; Habib said. Beyond fleet numbers, Habib emphasized that improving passenger experience would be an early priority. &ldquo;Our plan is to improve services for users, cleaning, cabin services, check-in counters, uniforms, catering, seats, and overall presentation,&rdquo; he said. &ldquo;We will put in new carpets, new seats, improve in-flight entertainment, and ensure that the attitude of cabin staff is more user-friendly.&rdquo; The expansion is expected to support higher flight frequencies on key international routes, particularly long-haul destinations with strong demand. Habib said the consortium aims to increase services to destinations such as the United Kingdom and Canada, where current operations are limited. &ldquo;There is a lot of demand, especially for long-haul flights, and we want to increase frequencies, including moving toward daily flights on certain routes,&rdquo; he said. Speaking to Pakistan TV Digital, the privatization chairman said the transaction also sends a broader message about Pakistan&rsquo;s reform agenda, underscoring the government&rsquo;s resolve to push ahead with privatization and to implement complex economic reforms through transparent and competitive processes. &ldquo;This deal shows that Pakistan is serious about privatization and that the government has the capacity and the will to execute complex transactions,&rdquo; Ali said, adding that the process was conducted through open, competitive bidding with strict financial and technical requirements. He also underscored the role of domestic investors. &ldquo;This transaction has shown that local entrepreneurs believe in Pakistan,&rdquo; Ali said. &ldquo;It sets a strong precedent for future privatizations.&rdquo; For Habib, the revival of PIA carries both commercial and symbolic importance. &ldquo;PIA is a national airline, and people&rsquo;s sentiments are attached to it,&rdquo; he said. &ldquo;We consider it a matter of national pride to restore an airline that once had a leading position globally.&rdquo; As the transition period begins, both the government and the new owners say coordination will be critical to ensure regulatory approvals, management continuity and a smooth transfer of control, laying the groundwork for what they describe as a new growth phase for Pakistan&rsquo;s flag carrier.

Economy

Talking to Pakistan TV Digital, Arif Habib says the new owners plan to expand PIA’s fleet, revive grounded aircraft, improve services and restore the national airline’s global reach.

From 18 to 60 aircraft: New owners unveil PIA expansion plan

Web Desk

ISLAMABAD:&nbsp;Pakistan concluded the sale of a controlling stake in its national carrier,&nbsp;Pakistan International Airlines (PIA),&nbsp;on Tuesday, finalizing a deal worth Rs135 billion ($485 million) following a televised auction in the capital. The Arif Habib Consortium submitted the highest offer for the 75% stake in the PIA, surpassing a bid from a group led by Lucky Cement Limited. The final price exceeded the government&#39;s reference price of Rs100 billion ($357 million) established earlier in the day. Finance Minister Muhammad Aurangzeb said the transaction would help integrate Pakistani institutions into the global economy. &ldquo;We need to stop the bleeding and losses, but more importantly, our institutions need to be part of the comity of nations, and we will take them there,&rdquo; Aurangzeb said at the ceremony. &ldquo;The fact that they have stepped up is a doubtless sign that anyone who is the successful bidder will take it not only to where we were, but where we need to be.&rdquo; The auction began with sealed offers from three pre-qualified groups: Arif Habib, Lucky Cement, and Airblue. In the first round, the Arif Habib group offered Rs115 billion ($410.7 million), while the Lucky Cement group offered Rs101.5 billion ($362.5 million). The Airblue consortium submitted a bid of Rs26.5 billion ($94.6 million)and was eliminated for falling below the minimum reference price. A second round of bidding followed between the two remaining groups, starting with a base price of Rs115 billion ($357 million)&nbsp;and a minimum increment of Rs250 million ($892,782). Lucky Cement raised its offer to Rs134 billion ($478.5 million) before the Arif Habib group submitted the final bid of Rs135 billion. Lucky Cement did not submit a further counteroffer. Privatization Minister Muhammad Ali said the government aimed for transparency by engaging multiple bidders. He stated that 92.5% of the sale proceeds will be reinvested into the airline to fund operations and fleet expansion. The remaining 7.5% will go to the government exchequer. The terms of the sale require the new owners to expand the airline&#39;s fleet from 18 operational aircraft to at least 30 within 3-4 years. The government retains a 25% stake in the carrier, which the winning consortium has the option to purchase within 90 days. The sale is part of an economic reform agenda linked to a $7 billion loan program from the International Monetary Fund, which mandates the privatization of loss-making state-owned enterprises.&nbsp;The government previously transferred approximately Rs600 billion ($2.14 billion) of the airline&rsquo;s debt to a holding company to facilitate the sale. This auction follows an unsuccessful attempt to sell the airline in November 2024, when a sole bidder offered Rs10 billion ($35.7 million) against a reference price of Rs85 billion ($303.5 million). The final bid requires formal approval from the Cabinet Committee on Privatization.

Arif Habib Consortium wins 75% stake in PIA with Rs135 billion ($482 million) bid, exceeding government reference price.

PIA privatization ends with $482 million winning bid

ISLAMABAD: Pakistan&rsquo;s Defense Minister Khawaja Asif rejected what he called &ldquo;baseless propaganda&rdquo; about the safety and operations of the national carrier, Pakistan International Airlines (PIA), on Monday. In a statement on X (Twitter), the minister said flight safety is &ldquo;non-negotiable&rdquo; and regulated by Pakistani and international authorities. He said that &ldquo;unqualified people cannot dictate it.&rdquo; <div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-0" scrolling="no" frameborder="0" allowfullscreen="true" style="position: static; visibility: visible; width: 550px; height: 368px; display: block; flex-grow: 1;" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=1987825916165431715&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F&sessionId=41083d636fb3f2062963698455b96286b669c5c0&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px"></iframe></div></div> The minister stated that PIA&rsquo;s average daily revenue over the past three days stood at Rs600 million ($2.1 million), achieved through uninterrupted domestic and international flight schedules. The minister said detractors were spreading malicious news to harm Pakistan&rsquo;s national interests and &ldquo;sabotage&rdquo; PIA&rsquo;s progress. He said the airline has been steadily improving after years of effort to restore profitability. According to the statement, PIA continues to operate flights as scheduled, serving destinations including Toronto, Manchester, Paris, Saudi Arabia, China, and the Far East. Plans to expand to Europe and North America are also in the works.

Pakistan’s defence minister rejected 'baseless propaganda' over PIA’s safety, saying flights meet international standards and recent revenues hit PKR600 million daily.

Articles tagged with "Pakistan International Airlines (PIA)"

From 18 to 60 aircraft: New owners unveil PIA expansion plan

PIA privatization ends with $482 million winning bid

‘Propaganda in the air’: Pakistan rejects claims of PIA safety issues