PIA sale to go ahead as scheduled
The Pakistani government is set to
proceed with the sale of a majority stake in Pakistan International Airlines
(PIA) this week. Originally scheduled for September, the auction was postponed
until October 30, 2024, due to bidder concerns regarding certain sale
conditions. As the end of October approaches, the auction date is confirmed to
remain unchanged.
Six bidders have pre-qualified for a
60% stake in PIA, including Fly Jinnah, AirBlue, Arif Habib Corporation, and
three consortia led by YB Holdings (Private) Limited, Pak Ethanol, and Blue
World City. Reports indicate that bidders raised issues regarding conditions
requiring them to retain all 7,300+ employees for at least two years and
fulfill obligations related to pension and benefits.
Read
More Bidders
demand full ownership as PIA privatization approaches
Additionally, bidders requested a
one-year warranty for 18 aircraft and assurances against ongoing legal
disputes. These warranties would cover the aircraft's condition, maintenance
records, and parts information. A government spokesperson mentioned that
discussions were ongoing to address these concerns.
Recently, Parliamentary Secretary
for Communications Gul Asghar confirmed in parliament that the PIA auction will
proceed as scheduled on October 30.
Meanwhile, reports highlight PIA's
struggles with grounded aircraft, with ten planes remaining out of service for
over a year due to delays in obtaining spare parts and conducting necessary
engine inspections. This situation is attributed to management shortcomings and
poor planning.
Read
More Rs30
billion net worth companies eligible to bid for PIA stakes
Sixteen of PIA's 32 aircraft are currently grounded for various reasons. This includes seven out of 17 A320-200s, two of three ATR42-500s, and several B777 models. Consequently, PIA has been forced to cancel multiple flights. However, the airline plans to launch a new weekly roundtrip service between Islamabad and Beijing Capital starting next month using one of its operational B777-200s.
In addition to the partial
privatization of PIA, the sale of Islamabad’s international airport is
scheduled for November as part of the government's broader privatization
strategy.
Source: ch-aviation