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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.

Articles tagged with "Privatization"

PIA nears full privatization as consortium moves for remaining stake

PIA nears full privatization as consortium moves for remaining stake