New capital will help ‘resolve PIA’s problems,’ says Arif Habib

Terming the privatisation of Pakistan International Airlines (PIA) a “success for Pakistan”, renowned industrialist Arif Habib, the Chief Executive of Arif Habib Corporation Limited, on Tuesday said the transaction would help restore investor confidence and pave the way for fresh investment in the country.

Speaking after the conclusion of the privatisation process, Habib said PIA carried a strong legacy and possessed a skilled workforce capable of supporting a turnaround under new capital injection.

“PIA has enjoyed a fabulous legacy and was once ranked the second-best airline in the world. Many employees are highly competent and understand their work very well,” he said.

He expressed hope that the inflow of new capital would help address the airline’s longstanding operational and financial challenges. “I hope that this new capital will help resolve the airline’s problems.”

The remarks came after a consortium led by AHCL on Tuesday emerged as the winning bidder for the acquisition of a 75% stake in Pakistan International Airlines (PIA), submitting a top bid of Rs135 billion, which was well above the government’s initial minimum price of Rs100 billion and the base price of Rs115 billion, at which the auction began.

Outlining expansion plans, Habib said the airline’s fleet would be increased to 38 aircraft in the first phase, followed by a further expansion to 65 aircraft.

“Depending on the demand, we will increase the number of aircraft,” he added.

Habib also underscored the importance of employee confidence in the turnaround process, noting that existing staff expertise would be fully utilised.

“We will give confidence to the employees and take full advantage of their expertise. With expansion, there will be opportunities for more people to work,” he said.