ISLAMABAD: Privatisation Commission Chairman Mohammad Zubair has said that the government is planning to split troubling national flag carrier Pakistan International Airlines (PIA) into two companies and sell control of the core business to a world airline over the next 18 months.
He, while giving an interview to a foreign news agency, said that economic advisers were now in negotiation with other world airlines about taking over the state entity. “No decision has been taken on the buyer, but he mentioned Emirates airline, Etihad and Qatar Airways as possibilities,” he added.
PIA has about 17,000 employees but just 36 aircraft – 10 of which are grounded due to dearth of spare parts. Mohammad Zubair, who is aiming to raise around $4 billion this fiscal year from the sale of stakes in several companies, has predicted that it would be the most difficult sale.
“If we are saying that for 25 years PIA has been going from bad to worse, we can’t claim that we are business-savvy and we can turn it around,” he said. “Anyone who thinks that the government can fund it is living in a fool’s paradise.”
Zubair said that the privatisation of the national airline would face strong political opposition and that would be a hurdle in quick sale of PIA. “It’s more politically sensitive,” he said, adding that PIA was not going to be sold just like other companies.
