PIA set to resume flight operations to UK after approval
Pakistan International Airlines (PIA) is seeking approval to resume flight
operations in the United Kingdom, following a four-year suspension triggered by
a pilot licensing scandal. PIA has formally approached
the UK Department of Transport and Civil Aviation under the directive of CEO
Khurram Mushtaq.
Request for Authorization
The Civil Aviation Authority (CAA) has confirmed receiving PIA’s letter
requesting reinstatement of the Third Country Authorisation, a crucial step
toward resuming operations in the UK. PIA plans to relaunch flights to London,
Birmingham, and Manchester, with the first European flight to Paris already
scheduled for January 10, 2025.
Read More Pakistan
actively seeking to reinstate PIA flights to UK
The airline anticipates a significant boost in revenue from the restoration
of these routes, which were once key to its operations.
Context and Impact
PIA’s services to Europe and the UK were suspended in 2020 following a pilot
licensing scandal that led to widespread bans. The resumption of UK operations
is part of broader efforts to rebuild the airline’s reputation and financial
stability.
IMF-Backed Privatization Efforts
The move comes amid ongoing efforts to privatize PIA, with the International
Monetary Fund (IMF) recently approving several conditions for the process.
These include:
- Sales tax
exemptions on aircraft purchases or leases for potential buyers.
- Settlement
of equity losses to encourage higher bids for PIA, potentially reaching up
to Rs350 billion.
Sources indicate that PIA’s lease agreements will benefit from monthly sales
tax exemptions worth 8.1 million rupees.
Read More UK
aviation authority considering to lift ban on Pakistan flights
Debt Restructuring and Asset Sales
The government has also restructured PIA’s debt, transferring Rs660 billion
in liabilities to a holding company. Proceeds from the sale of the Roosevelt
Hotel in New York are earmarked for debt settlement. A joint venture for the
hotel’s sale is expected to generate up to $1 billion within six months.
The IMF has approved using these funds to clear the holding company’s debts.
Additionally, sales tax exemptions for aircraft purchases and leases have been
extended to domestic routes, enhancing the privatization’s attractiveness.
Outlook
PIA’s efforts to resume UK flights and secure privatization align with the
government’s broader strategy to revitalize the national carrier and restore
its position in global aviation.
Source: ARY News