Government launches Pakistan International Airlines(PIA) privatisation tender
The Pakistani government has officially kickstarted the process of privatizing its national carrier, Pakistan International Airlines (PIA), by inviting potential investors to submit expressions of interest by May 3rd.
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With the government holding a dominant 96% stake in PIA, the tender aims to offload anywhere from 51% to 100% of the airline’s ownership.
This move follows the approval of prequalification criteria by the Privatisation Commission Board, paving the way for the formal launch of the tender.
According to Abdul Aleem Khan, the Minister of Privatisation, PIA presents an attractive investment opportunity for both local and international investors, particularly after the airline’s recent restructuring, which has significantly reduced its financial liabilities. Khan expressed hope that the Pakistani business community will show keen interest in acquiring the national airline.
The tender emphasizes PIA’s extensive rights to 97 international routes, including sought-after slots at various destinations. It also underscores the growth potential of Pakistan’s aviation market, which is projected to experience a 5.5% annual compound growth rate over the next five years.
Despite facing challenges, PIA’s latest annual report reveals revenues of PKR 172 billion ($619 million) from serving 4.2 million passengers in 2022. While this figure is slightly lower than its pre-pandemic peak of 5.2 million passengers in 2019, it indicates a resilient performance. However, the airline has incurred losses from 2017 to 2022, as reported in its financial statements.
Data from Cirium fleets reveals that PIA operates a fleet comprising eight Boeing 777s, 13 Airbus A320s, and a pair of ATR 42s.
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