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ISLAMABAD: Pakistan International Airlines (PIA) moved closer to full private ownership this week after the consortium led by Arif Habib Corporation Limited formally notified Pakistan&rsquo;s Privatization Commission of its intention to acquire the remaining 25% stake in the national carrier, completing a landmark transaction aimed at recapitalizing and expanding the airline. The notice, submitted under the terms of the Share Purchase and Subscription Agreement (SPSA) signed in January, includes the required standby letter of credit and sets the stage for full transfer of management control, expected on or before May 25, subject to regulatory and contractual approvals. The move follows the consortium&rsquo;s earlier acquisition of a 75% stake in PIA through a competitive privatization process and would bring the total transaction size to approximately Rs180 billion ($645.74 million), making it one of Pakistan&rsquo;s largest private-sector investments in a state-owned enterprise. Of the total investment, at least Rs55 billion ($197.31 million) will go to the government as divestment proceeds, while Rs125 billion ($448.4 million) will be injected directly into the airline as fresh equity to support its operational and financial restructuring. Talking to Pakistan TV Digital earlier this year, Arif Habib, chairman of the consortium, said the capital injection would be directed toward expanding and modernizing PIA&rsquo;s fleet, reviving grounded aircraft and improving the passenger experience. &quot;By the end of the current year, we will be able to take the fleet from 18 aircraft to 24,&quot; Habib said. &quot;Within three years, we plan to increase it to 38 aircraft, and within five years, we are targeting a fleet of 60 aircraft.&quot; Habib said the consortium was already in discussions with major aircraft manufacturers to support the expansion strategy, while also exploring short-term leasing options to bridge capacity gaps. &quot;We are in negotiations with Boeing and Airbus,&quot; he told Pakistan TV Digital. &quot;If we place orders for new aircraft, they can provide us with second-hand aircraft on lease until the new planes are delivered.&quot; He said the new owners also aim to bring back aircraft currently out of service within the next six to eight months, helping restore operational capacity on high-demand domestic and international routes. Alongside fleet growth, Habib said service quality would be an immediate focus. &quot;We will improve services for passengers while restoring PIA&rsquo;s international reach,&quot; he said, outlining plans to upgrade cabin interiors, catering, check-in facilities, and onboard systems. The Privatization Commission, in a statement issued this week, said it is working jointly with the consortium, the government, and PIA management to complete all conditions precedent ahead of the first closing date.

Economy

The consortium led by Arif Habib Corporation Limited formally notified Pakistan’s Privatization Commission of its intention to acquire the remaining 25% stake in the national carrier, completing a landmark transaction aimed at recapitalizing and expanding the airline.

PIA nears full privatization as consortium moves for remaining stake

ISLAMABAD: Airlines across Asia, Europe and the Middle East suspended or rerouted flights on Saturday after US and Israeli strikes on Iran triggered widespread airspace closures and security alerts across the region.&nbsp;Pakistan&rsquo;s flag carrier, Pakistan International Airlines, said it halted services to several Gulf destinations, citing deteriorating regional conditions.&nbsp;&ldquo;PIA&rsquo;s flights to the United Arab Emirates, Bahrain, Doha and Kuwait have been suspended due to the changing situation,&rdquo; the airline said in a statement.&nbsp;Multiple governments moved to restrict civilian air traffic after Iran closed its airspace and retaliatory activity spread across neighboring states. Pakistan, T&uuml;rkiye, Iran, Iraq, Israel, Syria, Kuwait and the United Arab Emirates all announced at least partial airspace closures within hours of the strikes.&nbsp;Airlines suspend regional operations&nbsp;Turkish Airlines said it cancelled flights to Lebanon, Syria, Iraq, Iran and Jordan until March 2.&nbsp;&ldquo;Flights to Qatar, Kuwait, Bahrain, the United Arab Emirates and Oman are suspended for today,&rdquo; spokesman Yahya &Uuml;st&uuml;n said.&nbsp;Qatar&rsquo;s civil aviation authority announced a temporary closure of the country&rsquo;s airspace, prompting Qatar Airways to suspend all departures and arrivals from Doha.&nbsp;The airline said it &ldquo;confirms the temporary suspension of its flights to, and from, Doha due to the closure of Qatari airspace.&rdquo;&nbsp;Air France said it was suspending flights to Dubai and Riyadh, expanding earlier cancellations that included Tel Aviv and Beirut.&nbsp;&ldquo;Due to the security situation at the destination, the airline has decided to cancel its flights scheduled for February 28 and March 1 to and from Tel Aviv,&rdquo; the company said, adding that the suspension would be extended.&nbsp;Russia&rsquo;s aviation authority said all commercial flights to Israel and Iran were cancelled &ldquo;until further notice,&rdquo; affecting multiple Russian carriers.&nbsp;Air India announced a blanket suspension of Middle East operations.&nbsp;&ldquo;In view of the developing situation in parts of the Middle East, all Air India flights to all destinations in the Middle East have been suspended,&rdquo; the airline said in a statement.&nbsp;British Airways said it would not operate flights to Tel Aviv and Bahrain until March 4 and confirmed the cancellation of a scheduled service to Amman.&nbsp;&ldquo;We are closely monitoring the situation and have taken the operational decision to cancel our flights,&rdquo; the airline said.&nbsp;Swiss International Air Lines said it suspended flights to and from Tel Aviv until March 7 and cancelled scheduled services between Zurich and Dubai.&nbsp;&ldquo;As numerous airspaces are closed as a result of the current situation, we are cancelling these flights,&rdquo; the airline said.&nbsp;The Lufthansa Group said it cancelled flights to and from Tel Aviv, Beirut, Amman, Erbil and Tehran until March 7, and temporarily halted services to Dubai and Abu Dhabi.&nbsp;&ldquo;These measures are due to the current situation in the Middle East,&rdquo; the group said.&nbsp;Air Alg&eacute;rie said it cancelled flights scheduled for Saturday to Amman, Dubai and Doha, according to a statement released to local media.&nbsp;Norwegian budget carrier Norwegian Air said it suspended flights to and from Dubai through March 4.&nbsp;&ldquo;We will then assess if it&rsquo;s possible to resume flights,&rdquo; communications director Charlotte Holmbergh said.&nbsp;Widespread airspace closures&nbsp;Iran&rsquo;s Civil Aviation Organization said the country&rsquo;s airspace was closed nationwide &ldquo;until further notice.&rdquo; Israel also shut its skies to civilian traffic, Transport Minister Miri Regev said.&nbsp;Iraq closed its airspace entirely, while the United Arab Emirates said it was implementing a &ldquo;partial and temporary&rdquo; closure. Syria&rsquo;s Civil Aviation Authority said southern air corridors near the Israeli border were closed for 12 hours.&nbsp;Jordan&rsquo;s military said its air force was conducting defensive drills to protect national airspace, later stating that two ballistic missiles were intercepted. Kuwait announced a full airspace closure, with its military saying it had &ldquo;engaged incoming missiles.&rdquo;&nbsp;Flight tracking service FlightAware reported that by early afternoon GMT, more than 11,000 flights had been delayed worldwide and over 900 flights cancelled, reflecting the broad impact of the regional escalation on global air travel.

Middle East

Europe

Americas

Pakistan International Airlines suspends Middle East flights as regional airspace closures follow US and Israeli strikes on Iran, with major global airlines cancelling routes amid escalating tensions and widespread disruption across Gulf and neighboring countries

Pakistan, global airlines halt Middle East flights after US, Israel strike Iran

Ayesha Mir

ISLAMABAD: Pakistan International Airlines (PIA) is set for a major fleet expansion and service overhaul as its new private owners map out an ambitious plan to grow the national carrier from 18 operational aircraft to 60 within five years, following the formal signing of <a href="https://www.pakistantv.com/article/pia-revival-to-ride-on-talent-global-expertise-and-strategic-growth-arif-habib" style="color: rgb(0, 0, 0);">privatization</a>&nbsp;agreements. Speaking with Pakistan TV Digital,&nbsp;Arif Habib, chairman of the consortium that acquired a <a href="https://www.pakistantv.com/article/all-eyes-on-pia-as-pakistan-begins-highstakes-privatization" style="color: rgb(0, 0, 0);">controlling</a> stake in PIA, said the immediate focus will be on restoring aircraft already grounded, expanding capacity through leased planes, and placing long-term orders with major manufacturers to rebuild the airline&rsquo;s network and competitiveness. A consortium led by the Arif Habib Group recently acquired a 75%&nbsp;stake in PIA, investing <a href="https://www.pakistantv.com/article/pia-privatization-concludes-with-135-billion-rupee-winning-bid-after-bidding-war" target="_blank">Rs135 billion</a> ($482 million) through a structured,&nbsp;competitive bidding process. The deal values the national carrier at Rs180 billion ($643 million) and marks a significant step in revitalizing the airline, which has faced financial challenges in the past. &ldquo;By the end of the current year, we will be able to take the fleet from 18 aircraft to 24,&rdquo; Habib told Pakistan TV Digital. &ldquo;Within three years, we plan to increase it to 38 aircraft, and within five years, we are targeting a fleet of 60 aircraft.&rdquo; The expansion plan comes as the government formally concluded the legal phase of PIA&rsquo;s privatization, signing the share purchase and shareholders&rsquo; agreements with the winning consortium. Muhammad Ali, chairman of Pakistan&rsquo;s Privatization Commission, said the transaction marked a turning point for an airline that had been a sustained burden on public finances. <div class="fr-embed youtube-embed"><iframe src="https://www.youtube.com/embed/HXGmRNl5zrE" title="Privatization Commission chief explains how PIA handover is underway" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="" style="width: 100%; height: auto; aspect-ratio: 16 / 9; max-width: 100%; display: block;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</iframe>&nbsp;</div> &ldquo;The bidding was completed on Dec. 23, but after that, we needed time to finalize complex legal agreements and meet several conditions,&rdquo; Ali said. &ldquo;Today, the agreements are signed, and the handover will take approximately 90 more days.&rdquo; Ali said PIA had incurred average annual losses of around Rs50 billion ($179 million) over the past decade, with losses totaling roughly Rs650 billion ($2.33 billion) ultimately borne by taxpayers. &ldquo;Now, the government is not responsible for any loss,&rdquo; he said. &ldquo;Inshallah, the private sector management will make it more efficient and profitable.&rdquo; Habib said the consortium&rsquo;s strategy recognizes the tight global aircraft market, where new plane deliveries are currently projected several years out. &ldquo;If you order a new aircraft today, delivery is available around 2031 or 2032,&rdquo; he said. &ldquo;We are in negotiations with Boeing and Airbus so that, alongside new orders, we can acquire five- to ten-year-old aircraft on lease until the new planes arrive.&rdquo; In parallel, the new owners plan to revive aircraft currently out of service. &ldquo;Within six to eight months, we believe we will be able to bring back about eight aircraft that are not operational at the moment,&rdquo; Habib said. Beyond fleet numbers, Habib emphasized that improving passenger experience would be an early priority. &ldquo;Our plan is to improve services for users, cleaning, cabin services, check-in counters, uniforms, catering, seats, and overall presentation,&rdquo; he said. &ldquo;We will put in new carpets, new seats, improve in-flight entertainment, and ensure that the attitude of cabin staff is more user-friendly.&rdquo; The expansion is expected to support higher flight frequencies on key international routes, particularly long-haul destinations with strong demand. Habib said the consortium aims to increase services to destinations such as the United Kingdom and Canada, where current operations are limited. &ldquo;There is a lot of demand, especially for long-haul flights, and we want to increase frequencies, including moving toward daily flights on certain routes,&rdquo; he said. Speaking to Pakistan TV Digital, the privatization chairman said the transaction also sends a broader message about Pakistan&rsquo;s reform agenda, underscoring the government&rsquo;s resolve to push ahead with privatization and to implement complex economic reforms through transparent and competitive processes. &ldquo;This deal shows that Pakistan is serious about privatization and that the government has the capacity and the will to execute complex transactions,&rdquo; Ali said, adding that the process was conducted through open, competitive bidding with strict financial and technical requirements. He also underscored the role of domestic investors. &ldquo;This transaction has shown that local entrepreneurs believe in Pakistan,&rdquo; Ali said. &ldquo;It sets a strong precedent for future privatizations.&rdquo; For Habib, the revival of PIA carries both commercial and symbolic importance. &ldquo;PIA is a national airline, and people&rsquo;s sentiments are attached to it,&rdquo; he said. &ldquo;We consider it a matter of national pride to restore an airline that once had a leading position globally.&rdquo; As the transition period begins, both the government and the new owners say coordination will be critical to ensure regulatory approvals, management continuity and a smooth transfer of control, laying the groundwork for what they describe as a new growth phase for Pakistan&rsquo;s flag carrier.

Talking to Pakistan TV Digital, Arif Habib says the new owners plan to expand PIA’s fleet, revive grounded aircraft, improve services and restore the national airline’s global reach.

From 18 to 60 aircraft: New owners unveil PIA expansion plan

ISLAMABAD: Pakistan on Tuesday moved closer to privatizing its national flag carrier as the bidding process for Pakistan International Airlines Corporation Limited (PIACL) entered its decisive stage, marking one of the government&rsquo;s most significant state-owned enterprise reform initiatives.&nbsp;Three consortia, led by AirBlue, Arif Habib Private Limited, and Lucky Cement, are competing to acquire a 75% stake in the airline. The process follows Fauji Fertilizer Company (FFC) withdrawing from the bidding race, though FFC retains the option to join the winning consortium at a later stage.&nbsp;According to privatization minister Muhammad Ali, the two unsuccessful bidders will be excluded from any future role in the airline&rsquo;s management. He explained that losing bidders would have no right to join the winning bidder, and only groups that were not parties to the auction would be able to enter the new management.&nbsp;To safeguard the integrity of the privatization, the government has introduced a key condition preventing unsuccessful bidders from participating in the airline&rsquo;s future management. Privatization minister Ali said this measure aims to ensure transparency and avoid post-auction arrangements that could undermine competition.&nbsp;Under the announced schedule, sealed bids were submitted to the Privatization Commission at 10:30 a.m., while the bids are set to be opened at 3:30 p.m. in a formal ceremony attended by the bidders. The reference price for the transaction will be approved by the Privatization Commission Board and the Cabinet Committee on Privatization only after bids are received.&nbsp;The entire bidding process is being broadcast live on television and digital platforms to reinforce transparency.&nbsp;Ahead of the auction, reports emerged of informal discussions between some bidding groups regarding a potential shared stake. However, Lucky Cement Chairman Muhammad Ali Tabba and government officials clarified that these interactions were private in nature and not facilitated by the government, and that they had no impact on the bidding process.&nbsp;Officials remain confident that the current auction will avoid the shortcomings of the previous privatization attempt, when a single bidder offered Rs10 billion for a 60% stake, far below the reference price of Rs85 billion, leading to the cancellation of the sale.&nbsp;The government views the privatization of PIA as a critical step towards improving operational efficiency, reducing fiscal burden, and attracting long-term private investment into Pakistan&rsquo;s aviation sector.

Three bidders, Lucky Cement, Arif Habib Pvt Ltd, and AirBlue, are in the race to acquire a 75% stake in the airline.

Privatization process of Pakistan International Airlines kicks off

ISLAMABAD: In what could mark Pakistan&#39;s first major privatization in nearly two decades, Pakistan International Airlines (PIA) is set for a crucial bidding process on Tuesday, with the entire auction broadcast live on national television to ensure transparency. Prime Minister Shehbaz Sharif originally announced the decision during a high-level meeting with business leaders and representatives from pre-qualified bidding consortia earlier this month, according to the Prime Minister&#39;s Office. The sale is seen as a key test of Pakistan&rsquo;s broader economic reform agenda, as the government seeks to cut losses from state-owned enterprises and revive investor confidence. Islamabad has launched a five-year privatization plan covering 24 state entities between 2024 and 2029, including the Roosevelt Hotel in New York, three banks, power distribution companies, and the Postal Life Insurance Company, the Privatisation Commission of Pakistan confirmed. With the exit of Fauji Fertiliser Company Ltd, three parties remain in contention: Lucky Cement group, Arif Habib Corporation, and private carrier Airblue. Privatization of loss-making state firms has long been urged by the International Monetary Fund (IMF), as the country seeks to address fiscal and external financing challenges. The PIA sale is a key requirement under the country&#39;s $7 billion IMF bailout program agreed in September. Privatization Adviser Muhammad Ali said the government plans a full divestment of the airline, beginning with the auction of a 75% stake on Tuesday, with the remaining 25% to be offered later at a 12% premium. Signs of recovery and future plansThe airline has shown recent improvement. PIA reported its first annual profit in 21 years for fiscal year 2024, earning an operational profit of $13.7 million. The European Union lifted its four-year flight ban in November 2024; PIA resumed service to Paris in January 2025 and restarted flights to the UK in October 2025. This marks Pakistan&#39;s third attempt at privatization, following a failed 2024 auction that received only one bid of $35 million &mdash; far below the government&#39;s $298 million floor price, according to Privatisation Commission records. Under the new business plan, PIA&#39;s fleet is expected to expand from 18 to 38 aircraft by 2029, with service to over 40 cities. The government is targeting $302 million in privatization proceeds this year, though Ali said restoring PIA&rsquo;s operations remains the priority over maximizing short-term revenue.

A Pakistan International Airlines aircraft taxis before takeoff for France at Islamabad International Airport. (File/AFP)

Pakistan will auction Pakistan International Airlines on Dec. 23 in a live televised bidding process, with three parties competing. The sale is part of a broader government plan to privatize 24 state-owned enterprises.

Pakistan to broadcast live auction for PIA privatization

ISLAMABAD: Pakistan International Airlines (PIA) resumed direct flights to the United Kingdom on Saturday, marking the restoration of services that had remained on hold for the past five years.&nbsp;The development follows the UK&rsquo;s decision in July to allow the national carrier to operate once again, after assessing that Pakistan&rsquo;s aviation safety standards meet international requirements. Earlier this month, the UK Civil Aviation Authority issued a Foreign Aircraft Operating Permit to PIA, completing the final procedural step. <div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-1" scrolling="no" frameborder="0" allowtransparency="true" allowfullscreen="true" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-1&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=1982017808142926068&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Fsections%2F&sessionId=1955e616218c9bd2515cd73355e0e0aa6832ae8c&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px" style="position: static; visibility: visible; width: 550px; height: 576px; display: block; flex-grow: 1;" data-tweet-id="1982017808142926068"></iframe></div></div>&nbsp;Speaking at the ceremony held at Islamabad International Airport, Defense Minister Khawaja Asif said the restoration of flights reflected the commitment and coordinated efforts of Pakistani aviation authorities.&nbsp;&ldquo;After a long and difficult delay of five years, today the resumption of flights from Islamabad to Manchester is a feat we have achieved through our hard work and determination,&rdquo; he said. Asif noted that significant improvements had been made in pilot training, licensing processes and aircraft safety compliance during this period.&nbsp;PIA has started with a twice-weekly service between Islamabad and Manchester, with plans to expand operations to London and Birmingham in the coming months. A PIA spokesperson confirmed that the first flight, carrying 284 passengers, departed for Manchester on Saturday afternoon.&nbsp;The airline had also resumed flights to Paris earlier this year after receiving clearance from European aviation authorities in late 2024.&nbsp;The government continues efforts to strengthen the national carrier and has reiterated its commitment to restructuring and reforming the organization.

PIA resumed direct flights to Manchester on Saturday after a five-year hiatus, following safety and regulatory improvements. The airline plans to add London and Birmingham routes next.

Pakistan national carrier resumes direct flights to Britain after five-year hiatus

ISLAMABAD: Pakistan International Airlines (PIA) has received clearance to resume flights to the United Kingdom (UK), nearly five years after services were suspended in the wake of a fatal 2020 crash.&nbsp;The national flag carrier announced on Wednesday that it had secured Third Country Operator (TCO) certification from the UK&rsquo;s transport department, allowing it to restart operations between Pakistan and Britain.&nbsp;&ldquo;PIA gets TCO Certification from UK. Plan to resume UK operations by next month,&rdquo; the airline said in a post on X, formerly Twitter.&nbsp;PIA flights are expected to resume in October, starting with services to Manchester, the first since the suspension following the 2020 Karachi crash that claimed 97 lives and triggered international scrutiny of Pakistan&rsquo;s aviation safety standards.&nbsp;The UK&rsquo;s decision follows a comprehensive audit of Pakistan&rsquo;s aviation oversight systems. Alongside PIA, private airline Airblue has also been granted a TCO license, paving the way for its entry into the UK market.&nbsp;Initially, routes will focus on Manchester and Leeds, with plans to expand to Birmingham, London, and Heathrow in the near future, according to Gulf News.

Foreign Affairs

Pakistan International Airlines has received UK clearance to resume flights after a five-year suspension following a 2020 crash. Operations will restart in October, beginning with Manchester, alongside private carrier Airblue’s UK approval.

Articles tagged with "PIA"