Pakistan has delayed the sale of beleaguered Pakistan International Airways (PIA) until autumn, as investors seek clarification on the books and on the potential return of service to Europe.
PIA Sale Delayed Until September
The economy of Pakistan is at a precarious crossroads and to stabilize spending and generate revenue, Pakistan plans to private flag carrier PIA. PIA has not been profitable for 20 years (beyond its lucrative hotel in New York City…) and has amassed nearly 1 billion USD in debt.
PIA is currently banned from travel to the United States, United Kingdom, and European Union due to lingering concerns over the carriers’ safety record (after a 2020 crash in Karachi killed 100 passengers and was blamed on pilot error). Those flight bans purportedly cost the carrier close to 150 million USD in revenue each year.
While PIA still operates to Canada, flight attendants routinely “disappear” never to return, underscoring the economic plight of many in Pakistan, even those who have what are considered plum jobs.
The planned sale of PIA this summer has been postponed as potential investors seek more information about the real state of the carrier:
“Pakistan has delayed the final auction for state-owned Pakistan International Airlines by two months until the end of September after potential bidders sought more information to assess the carrier, according to people familiar with the matter.”
Pakistan currently owns 100% of PIA and will sell a 51% stake to a private investor.
With intense regional competition without the high legacy overhead costs of PIA, PIA’s long-term recovery is pegged toward a return to longhaul service.
But is PIA just another perpetually unprofitable South African Airways or Alitalia? Or could it be the next Air India and revitalize after years of decline?
CONCLUSION
Pakistan will push its sale of PIA until September as investors seek more info on the balance sheet and concerning the possible return of service to Europe and the UK.
It’s fascinating to me to think that PIA is still utilizing the same Boeing 777 aircraft it was eight years ago when One Mile At A Time and I flew from Manchester to New York (full review).
> Read More: Pakistan Airlines 777 Business Class Manchester To New York Review
image: @pakistanintairlines / Instagram
This unfortunately likely means that they got no bids at all and the “extension” is really just trying again to sweeten the pot. Keeping the government of Pakistan as your 49% partner seems like a deal killer to me and last time I was in Pakistan late last year I avoided PIA because they didn’t have the cash to reliably by fuel and were cancelling many flights. The could sell 100% of the airline for $1.00 to a private party and still make the entire nation and traveling public far better off.
By the way, the dated SQ Spacebeds are sold as Economy Plus on the YYZ flights – this might be in part to get around onerous Pakistani taxes on business class airfare – and are a great bargain if one is traveling to Pakistan.
India was smart to dump Pakistan . UK is stupid dumb to import the third world , including Pakistan .
Now US is making the same stupid error , by importing the third world .
Import the third world … Become the third world .