Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, responded to questions regarding the airline experience of bidders in the privatization of Pakistan International Airlines (PIA). He stated that the participating groups are capable of managing the national carrier despite lacking previous experience in running large international airlines. Ali emphasized that airline management extends beyond aviation-specific backgrounds and relies heavily on corporate governance, management expertise, and financial capacity.
He further explained that bidders, including consortiums led by Lucky Group and Arif Habib Group, possess extensive experience in managing large enterprises, executing turnarounds, and operating within highly regulated environments. Ali indicated that this experience is translational into airline operations through the engagement of professional aviation management teams, international consultants, and technical partners. He acknowledged the complex areas involved in airline operations, such as fleet management and regulatory compliance, and highlighted that these challenges can be addressed with the right expertise.
Operational and Financial Risk Mitigation
Addressing concerns about operational and financial risks, Ali pointed out that the transaction structure has been designed to mitigate these risks. He noted that 92.5% of the sale proceeds would be injected into PIA to strengthen its financial position, and assured that the government has guaranteed job security for employees for at least 12 months while retaining responsibility for pension liabilities. He expressed confidence that private-sector discipline, coupled with professional management and capital infusion, will enable PIA to overcome its long-standing challenges and restore stability.
