Overseas Group Bids to Acquire PIA for Rs 130 Billion

Islamabad, Nov 12 (PTI) An overseas Pakistani group has proposed to acquire Pakistan International Airlines (PIA) for over Rs 130 billion, including a pledge to settle the airline's Rs 250 billion debt, a media report said on Tuesday.

The group initially proposed a Rs 125 billion bid and later raised the proposed amount to Rs 130 billion, The Express Tribune newspaper reported.

The group, Al Nahang, had reportedly sent a formal offer via email to the ministers of privatisation, aviation and defence, outlining its vision to revitalise PIA.

In addition to debt repayment, Al Nahang's proposal promises not to lay off PIA employees and offers a phased plan to double salaries across 30 pay periods.

The group also presented a comprehensive business plan, which includes adding modern aircraft to the PIA's fleet and developing the airline into a maintenance hub for other carriers.

The development comes after a local Pakistan group offered just Rs 10 billion to buy the airline, which was far below the minimum Rs 85 billion price tag set by the government to sell the national flag carrier.

Consequently, the process was halted as aviation minister Aleem Khan said at a press conference that the national asset would not be offloaded at a throwaway price.

Citing sources, the paper reported that Pakistan's Civil Aviation officials have finalised a plan for the restoration of Pakistani airlines' operations in European countries. The proposal, which aims to address the concerns that led to the initial restrictions, will be presented to European authorities.

In July 2020, a scandal involving suspicious pilot licenses led to a ban on all Pakistani airlines, including PIA, in Europe and the UK.

A meeting of the European Aviation Safety Committee is scheduled to begin in Brussels on November 19, 2024, where the potential resumption of Pakistani airlines, including national carrier Pakistan International Airlines (PIA), in European airspace is expected to be discussed.

The meeting will bring together representatives from the European Union Aviation Safety Agency (EASA), aviation officials from various European nations, and a delegation from Pakistan's Civil Aviation Authority (CAA), Express News reported.

Earlier in September, the CAA informed the EASA that it fulfilled all conditions related to aviation safety and has requested permission for the national flag carrier PIA to resume flights to the European Union and the United Kingdom.

According to sources, several online technical sessions have taken place between the CAA and EASA officials. During these extensive sessions, discussions focused on the restoration of PIA flights to Europe and the UK.

In these sessions, which lasted several hours, the CAA team briefed European officials on the safety measures taken by Pakistan. It informed EASA that it had completed all the required conditions set by the agency. The CAA also requested that the EU authority grant immediate permission for the restoration of Pakistani airlines.

According to sources, the government wants PIA flights to Europe and the UK to resume before the privatisation process of PIA is completed, according to the newspaper.