Tag: PIA

  • PC Board rejects Rs10bn bid for PIA, floats new proposals

    PC Board rejects Rs10bn bid for PIA, floats new proposals

    The Privatisation Commission (PC) Board on Wednesday rejected the latest bid for the national carrier, Pakistan International Airlines (PIA), presenting new proposals for the airline’s privatisation.

    New proposals will now be forwarded to the cabinet committee and the federal cabinet for approval.

    The Blue World City consortium, the only bidder, had placed a bid of Rs10bn against the minimum price of Rs85.03bn. The Shehbaz-led government had pre-qualified six groups in June, but only the real estate development company participated in the final bidding process.

    The decision to reject the lowest bid and new proposals came during a meeting chaired by Privatisation Minister Abdul Aleem Khan. Several privatisation initiatives were reviewed and key recommendations were approved.

    The minister stressed that all privatisation efforts, including those for PIA, must adhere to legal protocols while prioritising the national interest.

    “The final decision on the privatisation of institutions like PIA rests with the cabinet committee and steps must be taken to enhance future bidding processes, Khan maintained.

    The minister also directed officials to expedite the privatisation of PIA and other public entities and emphasised the importance of learning from the current PIA privatisation process to improve future efforts.

    There are some media reports that the federal government is also working on a new plan for privatisation, which involves the sell-off of the cash-strapped national carrier to either Qatar or Abu Dhabi under a government-to-government (G2G) agreement.

    It is worth mentioning that the Khyber-Pakhtunkhwa (KP) government and local business community have also shown interest in buying the PIA.

  • PIA auction fails: Sole bid rejected by government for being too low

    PIA auction fails: Sole bid rejected by government for being too low

    Spectators watched as the televised auction of the flag carrier, Pakistan International Airlines (PIA), failed horribly. The government seemed interested in selling PIA for the right price but did not approve the sale when the sole bid was off by 88.2 per cent of the original value.

    The reason for only one bid is the government’s condition for the purchasing entity to inject over half a billion dollars into PIA to modernise the fleet. Five business owners out of the six companies selected for the auction process decided to opt out due to this additional investment that they would have to finance after the purchase of PIA itself.

    The government was expecting to receive a total of $305 million but managed to get only a reality check. In hindsight, the goal of privatising the national carrier to companies via auction was a bad idea.

    If lawmakers in Islamabad aim to make the sale, it will have to explore other avenues.

    The auction process could be expanded to include more local businesses and international players, too. As it stands, this seems viable as Saudi Arabia, UAE, and Qatar have all expressed great interest in purchasing PIA in the recent past.

    Additionally, these investors in the Gulf also have the financial capability to undertake the massive $700 million fleet modernisation plan once they acquire PIA. This would be a good way for Pakistan to secure FDI (Foreign direct investment) inflows of over one billion dollars.

    Alternatively, the government could opt for a simple solution. This could be issuing more shares to be traded on the PSX (Pakistan Stock Exchange). However, this will spell bad news for investors who already have their money parked in the publicly traded PIA holding company. This is because the value of their shares will be reduced due to the dilution of ownership that will occur post-share issuance.

    In simple words, the creation of new shares will cause investors to lose out due to more overall shares being traded on the PSX. This is especially true if we consider the fact that Islamabad is currently interested in selling around 60 per cent of PIA.

    In this approach, shareholders, in collaboration with the government, could use the funds raised by the sale of shares to modernise the fleet without extensive international investments.

    However, as it stands, PIA is a loss-making institution.

    With last year’s loss of 75 billion rupees, PIA’s liabilities grew to a staggering 825 billion rupees. If the government retains a majority of the share while raising capital by issuing shares, investors could actually lose out instead. This is because civil servants can simply not run a company with the same efficiency businessmen can.

    If investors believe that the government will not commit to running PIA as a profit-maximising business rather than the national carrier, they may not put their money into it to begin with.

    The question remains: Which entity will purchase PIA from the government? The answer, while currently uncertain, will be sought by suits in Islamabad’s boardrooms.

  • Real estate company bidding for PIA has more than 200 FIRs registered against it

    Real estate company bidding for PIA has more than 200 FIRs registered against it

    Only one company, Blue World City, completed requirements to enter the bidding process for a stake in the country’s flag carrier, Pakistan International Airlines (PIA).

    Blue World City is a real estate project based in Rawalpindi and Islamabad. Journalist Shahid Aslam reported that there are “almost 215 FIRs registered against the company owners with charges ranging from murder, illegal weapons, injuring people, and illegal occupation of land.”

    The Privatisation Commission had initially pre-qualified six bidders, including Fly Jinnah, a consortium led by YB Hol¬dings (Pvt) Ltd, Airblue Ltd, a consortium led by Pak Ethanol (Pvt) Ltd, Arif Habib Corporation Ltd, and Blue World City.

    It was also reported that initially, government members did not think of Blue World City, a real estate company, as a serious contender for PIA.

    The Commission shortlisted the six companies after an extensive review based on technical, financial, and documentary requirements, inviting them to proceed with the next stage of the bidding process to start buy-side due diligence.

    However, out of all the six qualified bidders, only one chose to submit “earnest money” prior to final bidding.

    Earnest money is a deposit made to a seller that represents a buyer’s good faith in making a purchase.

    The successful bidder would own a 51 percent stake in PIA and 100 percent of the airline’s share capital, along with management control.

    Business Recorder reported that the owner of Blue World City was also looking into acquiring operations at the Islamabad International Airport, which the government is looking to outsource.

    As part of the IMF conditions for structural reforms, the government decided to privatise PIA as in 2023, it reported a loss of over Rs 75 billion.

    PIA has a debt load of around Rs800 billion ($2.9 billion), and the government has needed to bail it out multiple times over the years.

    Journalist Shahid Aslam also reported that the management of Blue World City also owns the media group Suno TV. According to Aslam, the management of the Blue World City is “run by retired Generals – Arif Waraich and Sajjad Rasool – who served in ISI.”

    Aslam claimed that “Gen (retd) Arif Warraich served as the DG SCT (ISI) in 2014-15 and is now serving at a Director level in Suno TV’s management. While Gen (retd) Sajjad Rasool served as DGS Security & Administration in ISI, and he is also part of the core management team at Suno TV.”

  • PIA bans photos, videos on flights

    PIA bans photos, videos on flights

    Pakistan International Airline (PIA), the country’s flag carrier, has banned mobile phone photography and vlogging during flights.

    A preliminary implementation of the ban has been initiated.

    Action can be taken against those who record videos or take pictures of other passengers during the flight. Incidents falling under harassment or immoral acts could be reprimanded for doing so.

    Geo News reported that photography during international flights, especially take-off and landing, will be strictly banned.

    PIA sources told Geo that the ban is being imposed to protect passengers and prevent the making of unauthorized videos, photography, and any emergency incidents.

    A proper announcement of the prohibition on photography and video making will also be made during the flight.

  • Bird strikes increase at domestic airports; PIA faces crores in losses

    Bird strikes increase at domestic airports; PIA faces crores in losses

    Bird collisions with planes at domestic airports have increased as national carrier PIA reports that the airline has incurred losses amounting to crores of rupees as a consequence of these collisions.

    PIA reported 38 bird strike incidents involving its planes from January to June this year.

    The majority of these collisions occurred at Lahore Airport, with 14 incidents, and Karachi Airport, with eight incidents, over the past six months. Additionally, seven cases were reported at other locations. Four incidents were reported at Multan Airport and one each at Sukkur, Faisalabad, and Gilgit Airports.

    The incidents primarily occurred during landing and take-off, resulting in additional expenses of crores of rupees for PIA.

    The Civil Aviation Authority is responsible for keeping birds away from airports, but the necessary systems have not been installed.

  • Guess what a Pakistani air hostess was smuggling in her socks

    Guess what a Pakistani air hostess was smuggling in her socks

    A video of a Pakistani air hostess being detained by police while trying to smuggle cash hidden in her socks has emerged online.

    The incident has raised concerns about security and professionalism among airline staff. There have been numerous issues and blunders involving PIA staff in the recent past, including cases of misconduct and operation failures. But smuggling and such illegal activities are few and far between and instead involve individuals rather than any systemic flaws.

    The uniform the person in the video is wearing resembles that of state carrier PIA.

    Here is the video of Air hotess:

  • Babur Junaid Jamshed shares his father’s wish for Shahadat 

    Babur Junaid Jamshed shares his father’s wish for Shahadat 

    Junaid Jamshed, known for his music and devotion to Islam, left a lasting impact on both, a legacy now carried on by his son.  

    Recently, Babur Junaid appeared as a guest on the Nadir Ali podcast. He talked about the last conversation with his father and his last wish for martyrdom (Shahadat). 

    During the podcast, Nadir Ali respectfully requested permission to share Junaid Jamshed’s last voice note, provided by a close friend. 

    Nadir Ali said, “With your permission, I’d like to discuss your last moments with Junaid Jamshed. I would also like to talk about his last voice note, which was shared by Arsalan Bhai, who used to be with him. I’ve listened to the voice note, and I noticed that Junaid Jamshed often used to say ‘MashaAllah’ and ‘Insha Allah’ frequently, but in his last message, he said, ‘I will come to Karachi’ without adding ‘Insha Allah.’ It seems that Allah had other plans, and it was not meant to be.”. 

    Talking about Junaid Jamshed Shahadat 

    Babur Junaid Jamshed said, “I was at home when we heard about Baba’s news. My mother told me, but there’s something I’ve never told anyone before: he wished for martyrdom. He often said, ‘I acknowledge my faults and wrongdoings; I seek forgiveness,’ which is why he desired martyrdom. Embracing martyrdom was our father’s greatest wish; you wouldn’t believe that he consistently prayed for it. We would become concerned, and my mother would sometimes get upset with his prayers, but that’s how it was.” 

     Junaid Jamshed was a very good, kind, humble, and friendly person, qualities bestowed upon him by Allah.” Babur added.

  • PIA and other airlines increase federal excise duty on international flights

    PIA and other airlines increase federal excise duty on international flights

    Pakistan International Airlines (PIA) and other airlines operating in Pakistan have announced a significant increase in the federal excise duty (FED) on international flight tickets, following the federal government’s decision in the 2024-25 budget.

    According to the latest notification, the FED on economy and economy plus tickets has surged by 150 per cent. Previously, passengers paid Rs5,000 in FED for economy class tickets, but this has now increased to Rs12,500.

    For premium travellers, the increase is even more substantial. Passengers travelling to the USA in Club Class, who previously paid Rs250,000 in FED, will now be charged Rs350,000. Similarly, the duty for flights to destinations in Africa and the Middle East has risen from Rs75,000 to Rs105,000.

    Travellers to European cities will see their FED increase from Rs150,000 to Rs210,000. The duty on tickets for flights to Australia, New Zealand, and countries in the Far East has also risen by 40 per cent, now standing at Rs210,000.

  • PIA Hajj flight makes emergency landing in Riyadh after technical fault

    PIA Hajj flight makes emergency landing in Riyadh after technical fault

    A Jeddah-bound Hajj flight of Pakistan International Airlines (PIA) made an emergency landing at Riyadh Airport after high temperature warning.

    The Hajj flight had departed from Karachi for Jeddah at 10 pm on Friday night.

    Geo News reports that a passenger on PK 839 said that an explosion was heard in the plane during the journey, after which the plane was diverted from Jeddah and landed at Riyadh airport.

    Following an aircraft check, high temperature warning mechanism was found to be faulty, and the flight was then flown to its original destination.

  • PIA to resume direct flights to Paris in June

    PIA to resume direct flights to Paris in June

    Pakistan International Airlines (PIA) is set to resume its flight operations to Paris in June, marking a significant step forward for the national carrier.

    In an address to a delegation from the Council of Economic and Energy Journalists in Islamabad, PIA Chairman Abdullah Hafiz unveiled the anticipated receipt of safety approval from the International Aviation Safety Assessment (IASA) in the imminent future.

    “With the imminent clearance from IASA, we are poised to launch flights to Paris by June, followed by the reinstatement of direct flights from Pakistan to Britain’s Heathrow Airport on August 14,” stated Hafiz with assurance.

    In anticipation of these pivotal routes, PIA has intensified its efforts in the maintenance and overhaul of its Boeing 777 aircraft fleet.

    Presently, seven Boeing 777 aircraft are operational, with an additional two expected to join the fleet within the next two months.

    This expansion will equip PIA with a total of nine Boeing 777 planes, facilitating efficient flight operations to both Europe and Britain.

    Highlighting Pakistan’s global aviation connectivity, Chairman Hafiz underscored that the country boasts air service agreements with 97 nations worldwide.

    The European Union Aviation Safety Agency (EASA) had imposed a flight ban on PIA following a tragic plane crash in Karachi in May 2020, which claimed 97 lives.

    Subsequent investigations uncovered discrepancies in the licensing procedures for commercial pilots.

    It is noteworthy that in November 2023, a delegation from EASA conducted a comprehensive evaluation of Pakistan’s Civil Aviation Authority (CAA) and PIA, assessing various aspects such as licensing, flight safety, flight standards, and airworthiness.