Pakistan International Airlines planning to go public with issuance of shares
The new majority owners of Pakistan
International Airlines (PIA) are preparing to take the airline
public within a year of assuming operational control.
According to Aqeel
Karim Dhedhi, chairman of AKD Group
and a member of the consortium that acquired a 75% stake in the national
carrier, the plan is to float between 5% and 10% of the airline through an
initial public offering (IPO).
The consortium purchased its majority stake from
the government for 135 billion rupees (approximately RM1.89 billion). Dhedhi,
who holds a 16% share in the buying group, said the IPO would form part of a
broader strategy to revitalize the airline and restore profitability.
PIA has long depended on government bailouts
after years of heavy losses and mounting debt, attributed to operational
inefficiencies, an aging fleet, and political interference. The new owners aim
to reverse this trend by expanding direct international routes and reclaiming
lost market share.
Read More New
owners say more jobs will be created in Pakistan International Airlines (PIA)
“At present, there are no direct flights from
Pakistan on many key routes, and passengers are relying on transit services
through airlines based in Qatar, Abu Dhabi, Saudi Arabia, and Turkey,” Dhedhi
said. “We intend to bring that business back. Given the option, passengers will
always prefer direct flights over transit connections.”
Meanwhile,
the government continues broader privatization efforts, including seeking a
redevelopment partner for the Roosevelt Hotel in New York and divesting power
distribution companies. These measures form part of reform commitments tied to
financial support from the International Monetary
Fund (IMF).
Source:
The Edge