EASA clearance to sweeten PIA sell-off

Asif says agency likely allow ops around mid-May

ISLAMABAD:

 

As the authorities take strides towards privatisation of the Pakistan International Airlines (PIA), Pakistan has set its sights on securing clearance from the European Union Aviation Safety Agency (EASA) in a bid to lure top-notch bids for the national carrier.

During a high-level chaired by Aviation Minister Khawaja Asif on Friday, the minister hinted at the possibility of EASA's nod coming around mid-May this year.

Asif highlighted that the green light from the international agency would significantly enhance the appeal and value of the national carrier, attracting potential investors.

The meeting, attended by key figures from the aviation, privatisation, and finance divisions, delved into the prospects of resuming flights to the UK.

The hope surfaces amid the aftermath of EASA's embargo on the airline's operations to lucrative European routes and the UK, following the tragic crash in Karachi that claimed nearly 100 lives in 2020. Subsequently, a scandal over fake pilot licenses further exacerbated the situation.

The ban's bite has cost PIA a hefty Rs40 billion annually, as per official figures disclosed in the parliament.

Despite PIA's pleas to EASA to lift the embargo, the silence from the European front has remained deafening. However, reports recently indicated that there was optimism in the PIA administration that flights to Europe and the UK would resume this year, anticipating a favourable decision from the EASA Safety Review Board.

Read PM urges PIA flight resumption to UK

Meanwhile, it was revealed during the meeting that the gears have also started turning on PIA's privatisation.

Discussions during the meeting centred on addressing hurdles in the privatisation process, debt restructuring with commercial banks, a six-month cash flow strategy, and delineating operational responsibilities.

Emphasizing the imperative of swift privatisation, Privatisation Minister Abdul Aleem Khan underscored the critical role of timely decisions in achieving substantial success in business.

In a parallel development, the Ministry of Aviation issued a gazette notification greenlighting the establishment of a holding company, a move aimed at alleviating PIA's financial burdens.

According to PIA sources, following the gazette notification, the company will be formally registered with the Securities and Exchange Commission of Pakistan (SECP) under the banner of PIA Holding Company Limited.