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PIA Privatization

PIA flight departs from Islamabad for Paris, ending 4-year EU ban


AFP | Dawn.com
January 10, 2025


Pakistan International Airline (PIA) crew members arrive before boarding their flight to Paris at the Islamabad International Airport on Jan 10, 2025. — AFP



Pakistan International Airline (PIA) crew members arrive before boarding their flight to Paris at the Islamabad International Airport on Jan 10, 2025. — AFP

Immigration officers check documents of passengers before boarding their Pakistan International Airlines (PIA) flight to Paris at the Islamabad International Airport on Jan 10, 2025. — AFP



Immigration officers check documents of passengers before boarding their Pakistan International Airlines (PIA) flight to Paris at the Islamabad International Airport on Jan 10, 2025. — AFP

Pakistan International Airlines (PIA) finally resumed flights to Europe on Friday, after a four-and-a-half-year ban was lifted by EU regulators.

A flight of the state-owned airline, plagued by a history of deadly crashes and a pilot licence scandal, took off from Islamabad at around 12:40pm heading for Paris, AFP journalists saw, becoming the only carrier to offer a direct route to and from the European Union.

“This is the first time I am travelling with PIA,” said passenger Shumaila Rana, a 38-year-old school teacher living in Germany. “I’m nervous and I’m having a lot of anxiety, but I’m hoping it’s gonna be a good flight.”

Debt-ridden PIA was banned in June 2020 from flying to the European Union, United Kingdom and the United States, a month after one of its Airbus A-320s plunged into Karachi’s Model Colony, killing nearly 100 people.

The disaster was attributed to human error by the pilots and air traffic control, and was followed by allegations that nearly a third of the licences for its pilots were fake or dubious.

In 2016, a PIA plane burst into flames after one of its two turboprop engines failed during a flight from Chitral to Islamabad, killing more than 40 people.

On November 29, the European Union Aviation Safety Agency announced it had lifted the ban, however, it remains barred from flying in the UK and the United States.

At the time, it said it had “re-established sufficient confidence” in the Pakistan Civil Aviation Authority’s oversight capabilities.

The airline flies to multiple cities inside Pakistan, including the mountainous north, as well as to the Gulf and Southeast Asia.



 Ground staff stand next to the Pakistan International Airline (PIA) aircraft ahead of its takeoff for Paris at the Islamabad International Airport on Jan 10, 2025. — AFP



Ground staff stand next to the Pakistan International Airline (PIA) aircraft ahead of its takeoff for Paris at the Islamabad International Airport on Jan 10, 2025. — AFP

PIA, which employs 7,000 people, has long been accused of being bloated and poorly run — hobbled by unpaid bills, a poor safety record and regulatory issues.

Pakistan’s government has said it is committed to privatising the debt-ridden airline and has been scrambling to find a buyer.

It has been decided that the losses of the national flag carrier will be transferred to the Holding Company, making PIA free of liabilities and attractive and lucrative for investors who had been otherwise shy in acquiring the national flag carrier due to the losses.

Late last year, a deal fell through after a potential buyer reportedly offered a fraction of the asking price.

The government hopes the opening of European routes, which officials expect will be followed by a similar announcement by the UK later this year, will boost its selling potential.

Aviation Minister Khawaja Asif had called the restoration of flights to Europe a “major value addition” that would make the airline more attractive to potential buyers.

PIA posted losses of $270 million in 2023, according to local media. Its liabilities were nearly $3 billion, about five times the total worth of its assets.

In the same year, amid a national economic crisis, dozens of domestic flights were cancelled when it could not afford fuel for its planes.

PIA came into being in 1955 when the government nationalised a loss-making commercial airline and enjoyed rapid growth until the 1990s.
 
Pakistan international airlines Airbus a320
getting water canon salute at Oman airport
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PIA Boeing 777 at Paris Charles de Gaulle Airport.
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ماضی کی جھلک: اپریل 1976
پی آئی اے کا پہلا بوئنگ B747-282B (رجسٹریشن: AP-AYW) اپنے بیس کراچی پاکستان
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پہنچا، نئی شکل میں پرچم کے سبز رنگ اور سنہری دھاری کے ساتھ، اور اپنی عظیم دم Tail پر فخریہ طور پر PIA کا نشان سجائے ہوئے۔
اگر آج دوبارا ہم اسی جزبے اور ایمانداری سے کام کریں تو ہمارا ملک اور ادارے پھر سے دنیا میں وہی مقام حاصل کر سکتے ہیں ۔

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what a loser airline...
 
January 10, PIA Boeing 777-200ER aircraft registration AP-BGK
departure from Islamabad Airport as flight PK749 to Paris
 
Gwadar International Airport
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Pakistan International Airlines ATR-42-500 flight PK503 lands at Gwadar International Airport & receives a water cannon salute
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British Airways vs PIA Airline
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دنیا کے بہترین ماہر پائلٹ ۔
پی آئی اے ہمارا فخر ہے پی آئی اے کا ساتھ دیجئے۔ یہ ہماری پہچان ہے۔ ہم سب پاکستان ہیں باکمال لوگ لاجواب سروس

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In 1985, PIA became the first airline from Asia to operate Boeing 737-300.
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Pakistan International Airlines (PIA) McDonnell Douglas DC-10-30 and Boeing 747 at Frankfurt Airport.
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PIA planning to operate 22 weekly Boeing 777 flights from UK to Pakistan.
10 weekly Boeing 777 from London
9 weekly Boeing 777 from Manchester
3 weekly Boeing 777 from Birmingham

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PIA privatisation: Commission ready for second attempt at sell-off​


In October 2024, Blue World City consortium failed to meet the Rs85.03 billion bid for PIA, offering only Rs10 billion

News Desk
February 03, 2025

tribune


The privatisation commission (PC) has announced that it is "fully prepared" for a second attempt at privatising Pakistan International Airlines (PIA), with several returning bidders and parties involved in the process.

This update came during the 6th meeting of the National Assembly’s Standing Committee on Privatisation, chaired by Dr Farooq Sattar, on Monday.

The commission briefed the committee on the progress of PIA's privatisation, emphasising that this second attempt would build upon lessons learned from last year’s failed attempt.

In October 2024, the government’s initial plan to privatise the national carrier fell through after the only bidder, Blue World City consortium, refused to meet the Privatisation Commission’s minimum expectation of Rs85.03 billion. Instead, the consortium offered just Rs10 billion for a 60% stake in the airline.

Following this setback, the government now plans to initiate a fresh process for the sale of PIA, with updated strategies to attract new bidders.

One of the key recommendations presented during the meeting was a proposal to waive the 18% Goods and Services Tax (GST) imposed by the government on the induction of new planes and fleet expansion.

Bidders suggested that removing the GST would stimulate private sector investment in new aircraft and aid the growth of Pakistan's aviation industry.

The committee was informed that the government had raised this issue with the International Monetary Fund (IMF), which agreed to remove the tax if PIA is privatised. This move is expected to encourage investment in the airline’s fleet.

Furthermore, the committee discussed the liabilities of PIA, which amount to Rs45 billion. These liabilities include Rs26 billion in taxes owed to the Federal Board of Revenue, Rs10 billion owed to the Civil Aviation Authority (CAA), and pension liabilities.

The government plans to devise a mechanism to address these outstanding liabilities to ensure they do not deter potential investors.

The committee also clarified that non-core assets of PIA would not be included in the privatisation bidding process. A separate policy for these assets is being formulated, with a consultant already hired to propose options to the Cabinet Committee on Privatisation.

In a previous meeting, it was revealed that the IMF had agreed to clear the Rs45 billion negative equity of Pakistan International Airlines Company Limited (PIACL), which is a significant step towards revitalising the airline and facilitating the privatization process.

Additionally, the committee discussed the Privatisation Commission (Amendment) Bill 2024, raising concerns over Clause 4, Section 7(4), which grants the prime minister the authority to make privatization decisions instead of the cabinet.

The committee has asked the Ministry of Law to clarify whether there is any precedent for this provision and deferred the bill until further details are provided in the next meeting.
 
Pakistan International Airlines (PIA) Boeing 747 at Karachi Airport.
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PIA team has arrived in UK to review arrangements for the resumption of airline's flights expected from March 2025.
PIA has planned to operate Boeing 777 flights to destinations in UK including London, Manchester and Birmingham.

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