The ruling elite has finally concluded the state’s ownership of Pakistan International Airlines (PIA), handing over the reins to a consortium led by Arif Habib, a former top stockbroker turned industrial tycoon. This move marks a pivotal shift for the national flag carrier, which was once a premier regional airline boasting vast infrastructure and licences for nearly 70 global destinations. While the PKR 135 billion price tag for a 75 per cent stake has sparked intense public debate, aviation and financial experts suggest the deal is more strategic than it appears at first glance.

Rather than a simple buyout, the financial structure is designed to revitalise the airline’s crumbling foundations. The government is set to receive an initial PKR 10 billion in cash, a figure that could rise to PKR 55 billion if the consortium follows through on its plan to acquire the remaining 25 per cent of the shares. More importantly, the lion’s share of the bid, roughly PKR 125 billion, is earmarked for direct injection into the company. This capital is intended to modernise ageing technology, overhaul operational efficiencies, and fund the much-needed induction of new aircraft, offering a genuine path towards restoring the airline to its former glory.

Looking back, this privatisation marks the end of a chapter for an airline that once boasted an outstandingly glorious past and a superb upward trajectory. Pakistan International Airlines (PIA) was established in 1953 through the merger of Orient Airways with government backing.

In 1950, Orient Airways’ traffic had declined after losing routes to British airlines and local competitors, leading to government subsidies by 1952. The government established PIA with Rs 25 million. In 1955, Orient Airways merged into PIA, adding new routes such as Karachi–Quetta–Lahore and increasing passenger capacity by 50 per cent. PIA’s first international flight landed in London. The airline ordered new aircraft in 1956, and by 1958–59, passenger numbers rose to 208,000 under Air Marshal Noor Khan, marking a successful era for PIA.

© The Friday Times