Pakistan International Airlines (PIA) is preparing for a major transformation under new ownership, with investors pledging significant capital despite acknowledging that losses will continue in the short term. The consortium, led by the Arif Habib Group, has outlined plans to modernize the fleet, improve service standards, and restore confidence in the national carrier, Arab News reported.
Investment and Early Losses
The new owners have committed around $400 million over seven years, with two‑thirds of the funds to be injected at the time of takeover, expected in April. The investment will cover operational losses in the initial years and finance upgrades to aircraft and passenger facilities.
According to Arif Habib, quoted by Arab News, the airline is likely to remain in deficit for one to two years before returning to profitability. He emphasized that investors are focused on long‑term returns rather than immediate gains.
Passenger Experience and Operational Discipline
Management has pledged to renovate check‑in counters, refurbish cabins, replace seating, and install modern entertainment systems. Flight punctuality has been identified as a priority, with strict measures planned to rebuild passenger trust.
Habib noted that improving the customer journey will be central to the turnaround strategy of PIA, alongside enforcing operational discipline across the airline.
Fleet Expansion Plans
PIA currently operates 19 aircraft. The new roadmap envisions expanding to 38 planes in the first phase and eventually reaching 64 aircraft. The expansion is designed to address demand on high‑traffic international routes, including the UK, United States, and Canada, where limited availability has constrained growth.
Discussions are also underway with the US Federal Aviation Administration to resume flights to America, suspended in recent years due to regulatory concerns.
Privatization Deal
The consortium acquired a 75 percent stake in PIA on December 23 for Rs. 135 billion, valuing the airline at approximately Rs. 180 billion. The deal marks one of the most significant privatizations in Pakistan’s aviation sector, with expectations that private management will deliver efficiency and competitiveness.
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