pia up for sale 6-way battle to secure the prize
Published on: June 12, 2024.
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It’s finally happening! After years of struggle, the privatization of Pakistan International Airlines (PIA) is becoming a reality. Previous attempts by three successive governments to privatize PIA have fallen through due to political interference, bureaucratic red tape, and government arrogance. But this time, the process has reached a critical point, and the fate of the entire Pakistani airline industry hangs in the balance.
In the past month, eight bidders have submitted qualification statements to express their interest in acquiring PIA from the government. However, two of these initial bids have already been rejected. Interestingly, all eight bids were placed by newly formed consortiums, so there is no single known company or individual that stands out as a frontrunner.
Among these consortiums are four different Pakistani airlines: Fly Jinnah, AirSial, Serene Air, and Air Blue. For these airlines, the acquisition of PIA is a matter of survival. Currently, PIA boasts the largest fleet and the most extensive domestic and international network in Pakistan. Being the market leader in the country’s aviation industry, controlling PIA would give a significant advantage to any airline or conglomerate.
There are two possible outcomes of this privatization process. The first is that an airline conglomerate takes over PIA, instantly becoming the market leader. The second scenario involves a conglomerate without any airline involvement taking over, which would result in the establishment of a new entity while PIA’s position remains unchanged. Regardless of the outcome, the aviation industry in Pakistan is bound to experience significant changes.
The challengers vying for PIA encompass a diverse range of industries. These consortiums include not only airlines but also power producers, chemical manufacturers, and real estate developers. As the process unfolds, it is highly likely that some participants will drop out, leading to changes in the composition of the consortiums.
This privatization effort is a major development for Pakistan’s aviation industry. The outcome will not only determine the future of PIA but also reshape the competitive landscape for all airlines in the country. The stakes are high, and all eyes are on the progress of this historic privatization process.
Source: [Profit Pakistan Today](https://profit.pakistantoday.com.pk)
