- Representatives of the consortia met with the CEO of PIA on Saturday.
- Bidders are seeking daily records from the airline and commissions.
- Retirees’ pensions excluded from buyers’ liabilities.
KARACHI: Ahead of the December 23 auction of Pakistan International Airlines (PIA), the four consortiums have requested daily records from the national airline’s administration and the Privatization Commission, sources said. PK Press Club News Tuesday.
The privatization phase of the national airline has entered its final stage, the sources said, adding that officials of the consortia held a meeting with the chief executive officer and management of the PIA on Saturday to review operational and financial issues.
It was learned that the bidders were provided with all records of the airline’s domestic and international routes, as well as those of current and retired employees.
“Responsibility for retirees’ pensions will not fall to the consortium that acquires the airline,” the sources said.
The Prime Minister’s Secretariat has asked the national airline to fully cooperate and provide necessary details to the four consortia ahead of the December 23 bidding process, they added.
Prime Minister Shehbaz Sharif said on Thursday that “the entire tender process, which will be televised live, would be transparent and merit-based, adding that these were the government’s top priorities.”
The Prime Minister’s Office, in a statement, also said that the tender process was progressing smoothly to restore the airline’s “lost glory” and bring it in line with modern requirements.
The government’s previous attempt to privatize the entity failed as a $36 million bid from a real estate company failed to meet the floor price of $305 million, due to concerns over debt, staffing and limited control.
This time, the government is proposing total divestment, has eliminated sales tax on leased planes and is offering limited protection from legal and tax claims. Around 80% of the airline’s debt was transferred to the state.
Additionally, the PIA has also resumed flights to the UK, more than five years after a ban linked to the fake pilot license scandal was lifted in July. 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 expected next week.
