- Representatives of the consortia met with the director general of PIA on Saturday.
- Bidders seek daily records from the airline and the commission.
- Retired staff pensions excluded from buyers’ liabilities.
KARACHI: Ahead of the December 23 auction of Pakistan International Airlines (PIA), the four consortia have requested daily records from the management of the national flag carrier and the Privatization Commission, sources said. Geographic news on Tuesday.
The privatization phase of the national airline has entered its final phase, sources said, adding that consortium officials met the CEO and PIA officials on Saturday to review operational and financial matters.
It was learned that bidders have been given all records of the airline’s domestic and international routes, as well as current and retired employees.
“Responsibility for the pensions of retired employees will not fall on the consortium that acquires the airline,” the sources said.
The Prime Minister’s Secretariat has directed the national airline to extend full cooperation and provide necessary details to the four consortia as the December 23 bidding process approaches, they added.
Prime Minister Shehbaz Sharif stated on Thursday that “the entire bidding process, which will be live-streamed, will be transparent and merit-based, adding that these were the government’s top priorities.”
The Prime Minister’s Office, in a statement, also said the tender process was progressing smoothly to restore the airline’s “lost glory” and align it with modern requirements.
The government’s previous bid to privatize the entity failed because a $36 million bid from a real estate company did not meet the minimum price of $305 million, raising concerns about debt, staffing and limited control.
This time, the government is offering full divestment, has eliminated sales tax on leased aircraft and is providing limited protection against legal and tax claims. Around 80% of the airline’s debt has been transferred to the State.
In addition, the PIA also resumed flights to the United Kingdom, more than five years after a ban was lifted in July over a fake pilot license scandal. Its European flights resumed in January after a four-year ban.
The renewed efforts have attracted interest from local business groups including Airblue, Lucky Cement, Arif Habib Group and Fauji Fertiliser, with final bids scheduled for next week.
