Turkish Airlines has denied recent
reports suggesting it is in talks to acquire Pakistan International Airlines
(PIA), a claim initially circulated by Bloomberg.
In an official statement, Turkish
Airlines clarified that the rumors "do not reflect the truth,"
confirming that it has no plans to pursue any acquisition or agreement with
PIA. The airline emphasized, "There is no undertaking in this
direction," firmly rejecting the speculations.
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Airlines to increase flights to Pakistan
PIA, which has been grappling with
financial difficulties and restructuring challenges, is currently preparing for
privatization. According to a Privatization Commission official, 60% of the
carrier's shares are scheduled to be sold on October 1, 2024.
PIA's assets are valued at Rs155
billion, while its liabilities, through PIA-CL, amount to Rs200 billion. Rather
than an upfront payment of $500 million, the buyer will be required to invest
over a three-year period, with Rs70 billion needed annually to keep the airline
operational.
The privatization process is
expected to incur a cumulative loss of Rs45 billion. The official also revealed
that PIA is currently not sustainable, with the bidding process set for October
1, and the share transfer projected to be completed within two months.
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made to utilize Turkish expertise in PIA's privatization
PIA, which currently employs 320
certified pilots, will need to hire additional staff to support the anticipated
expansion of its fleet. The airline generates Rs1.5 billion annually in Federal
Excise Duty (FED) from ticket sales, a figure expected to double in the near
future.
Source:
Mettis Global