PIA privatisation 2024: Airline's auction set to be held on October 30

Successful bidders would be asked to increase the number of aircraft owned by PIA up to 40-45
Image of Pakistan International Airlines (PIA) passenger plane, taken through a glass panel, at Islamabad International Airport, Pakistan October 3, 2023. — Reuters
Image of Pakistan International Airlines (PIA) passenger plane, taken through a glass panel, at Islamabad International Airport, Pakistan October 3, 2023. — Reuters

In order to revitalise the national carrier and boost the country’s economy, the government of Pakistan has announced the final auction of Pakistan International Airlines (PIA) Corporation will be held on October 30. 2024.

Parliamentary Secretary for Communication Gul Asghar Khan revealed the date for the auction during a National Assembly session.

It should be noted that the privatisation process started in February 2024 and involves several institutions including Privatisation Commission Board. The matter has also been approved by the Cabinet Committee on Privatisation.

The privatisation process of PIA entered its final stages, and the case continued to see several significant developments.

The PIA's Corporation stake up for sale is 60%, attracting six pre-qualified consortia, including Fly Jinnah Limited and Air Blue Limited.

The successful bidders would be asked to increase the number of aircraft owned by PIA up to 40-45 in three to five years.

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The safety of employees was maintained through provisions of retention of jobs for a period of at least two to three years, with associated perks and pensionary benefits. The last hammer fell in the auction was scheduled on 30th October 2024.

The main challenges PIA faced during this period includes an ageing fleet and issues regarding the valid licenses of its pilots.

This airline went through one of the worst controversies ever in 2020 when more than a quarter of its pilots' licenses were declared fraudulent, resulting in an international ban.

The successful bidder would have to pay the earnest money and commit itself toward the expansion of the fleet and routes of PIA. Privatisation is also expected to bring about huge changes in the operations because 7,360 employees work in PIA.