PIA to be privatized; Malaysia Airlines model being considered

PIA - Pakistan International Airlines will be privatized as part of the new Pakistani prime minister, Nawaz Sharif's, plans to remove the financial millstone from around his government's neck. 

The AFP reports that the plans include the sale of a 26% stake in the ailing national carrier with managerial control to be handed over to private investors.

With over 18,000 employees for 42 planes, PIA has consistently been listed as one of the worst performing parastatals among Pakistan's various state-run assets. Most recently, the airline posted a loss of USD320million for its latest financial year. 

"The government is fully committed to reforming and restructuring all ailing state enterprises, including PIA," Sharif said after a recent cabinet meeting. Mr Sharif had invited ex-Malaysia Airlines CEO, Idris Jala, to attend the meeting where he presented details about Malaysian economic programs and Kuala Lumpur's transformation of Malaysian Airlines into a viable entity. 

Once issued, the tender is expected to attract international investors and possibly some Gulf carriers.

Source: CH-Aviation