(MENAFN- Live Mint) The Pakistan government is all set to sell the majority of stakes in Pakistan International airlines on October 31. However, Pakistani media reports have raised concerns over the delay in sales, as only one bidder has submitted prequalification documents for the privatisation of the airline.
Earlier, six entities had pre-qualified to bid for a 60 per cent stake in PIA, which includes several Pakistani budget carriers, including Fly Jinnah, AirBlue, Arif Habib Corporation, and three consortia led by YB Holdings (Private) Limited, Pak Ethanol, and Blue World City.
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However, five entities have withdrawn from the PI sale, leaving only one group, The News International, a Pakistani newspaper reported. The withdrawal of the five groups comes after the bidders, who initially agreed to a 60 per cent stake, pushed for complete ownership of PIA, citing concerns such as the airline's financial liabilities, outdated fleet, and operational difficulties. In response, the government increased its offer to only a 76 per cent stake, after which only one group was left as the bidder.
Pakistan International Airlines has been at the centre of several crises, including financial strains and safety concerns. In 2023, 7000 employees of the national flag carrier did not receive their salaries for the month of November.
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In August 2024, one Pakistani travel blogger travelling to Skardu on a PIA flight shared his experience, calling it“one of the most dangerous flights in the world.” The vlogger highlighted issues like unclean seats, broken handles, and duct tape on the overhead bin.
The European Union banned PIA in 2020 over safety concerns. The vlogger also shared that PIA was banned in Europe because“one in three airline pilots have fake licenses”.
PIA auction: Investments estimated at $500 million
Acquiring PIA's current fleet of smaller leased aircraft would require a significant investment of roughly about $500 million for fleet renewal and operations. Additionally, the suspension of international routes to Europ and the U.S. has diminished the airline's attractiveness.
Pakistani media reports state that potential buyers have urged the government to reinstate these routes to enhance the airline's profitability prospects.
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