Islamabad engaged in ongoing discussions with Qatar regarding
PIA stake
The Pakistani government remains in active talks with the
Qatari government concerning the possibility of Qatar taking a stake in PIA - Pakistan
International Airlines.
Fawad Hasan Fawad, Pakistan's Minister for Privatization,
has recently held a series of meetings with Qatari officials, and discussions
are progressing smoothly.
Committee
established to expedite privatization of Pakistan International Airlines (PIA)
As part of its efforts to partially privatize the
financially struggling state-owned carrier, Pakistan's government has appointed
an Ernst & Young-led consortium to provide advice on the sale. However,
discussions regarding Qatar Airways acquiring a stake in PIA are not new.
Reports from fifteen months ago indicated plans by the Pakistani government to
offer Qatar Airways a 51% stake, along with operational control of PIA.
An internal report from the Pakistani government on the
partial privatization outlines a significant severance payout for an
unspecified number of employees who may lose their jobs in the event of
privatization.
Privatization
of PIA-owned Scribe Hotel in the pipeline
PIA's historically high employee-per-aircraft ratio, while
reduced through ongoing efforts, may still pose a challenge for potential
investors, potentially leading to job losses. The lack of union agreements on
job loss numbers and associated financial payouts, to be covered by the
Pakistani government, remain key obstacles to garnering unanimous support
within PIA for the stake sale.
The same report identifies PIA's key assets as its routes,
landing rights, core engineering services, and air service agreements.
Particularly valuable routes include those to the UAE, Jeddah, London Heathrow,
Toronto Pearson, Rome Fiumicino, and New York JFK. However, the age and
condition of PIA's 33 aircraft, coupled with the necessary investment for their
upgrade, may impact the final sale price.
Source: https://www.ch-aviation.com/