Pakistan International Airlines Corporation Limited (PIACL) may finally get privatised as Lucky Cement Limited (LUCK) has reportedly announced its participation in a consortium seeking to purchase a majority stake in the airline. According to reports, the consortium also includes notable companies such as Metro Ventures (Private) Limited, Hub Power Holdings Limited, and Kohat Cement Company Limited.

 

Reports indicate that the consortium has already put forth a Statement of Qualification and Expression of Interest to acquire 51 percent to 100 percent of PIACL. The consortium intends to acquire managerial control of the airline as well.

 

Reports reveal the Privatisation Commission has already qualified and shortlisted a number of parties, including the aforementioned consortium, to partake in legal, financial and technical analyses on PIACL. Following the shortlisting process and the completion of analyses by interested parties, a competitive bidding process is expected to follow.

 

Reports suggest that the bidding process will follow privatisation laws and that authorities are expected to ensure that no party is given an unfair advantage in the privatisation process. However, neither the consortium nor Lucky Cement have made a binding agreement with the federal government to purchase a stake in PIACL.

 

It merits a mention that Pakistan International Airlines (PIA) recently posted its first profit after logging losses for 21 consecutive years. PIA logged an operational profit of Rs3.9 billion in 2024, with net profit remaining at a healthy Rs2.26 billion.

 

A spokesperson from PIA claimed that the airline enjoyed an operating margin of over 12 percent. According to the spokesperson, the national carrier’s financial performance was in line with that of some of the best airlines in the world. PIA has been able to achieve this feat after making major changes to its business operations and structure.

 

These changes allowed PIA to lift the suspension that had been placed on its flights to major destinations, such as Europe and the United States. This moratorium on PIA’s services came about as a direct consequence of a post-crash speech by then-Minister Ghulam Sarwar, who had claimed without any evidence that 40 percent of PIA’s pilots were flying with fraudulent licenses. Sarwar’s speech detrimentally impacted the airline's credibility, and the airline lost its goodwill with customers, which it had earned over the years. 

 

With PIA having regained its reputation and working tirelessly to adhere to security regulations, it has regained the right to fly lucrative routes to Europe. Moreover, the airline continues to lease out its slots to airports to which it is barred from flying, such as London Heathrow airport. 

 

In addition to boosting revenues, the airline has focused on cutting costs, as reports indicate that annual expenditures fell considerably during 2024. PIA was able to slash its manpower while suspending flight operations to non-profitable routes. These developments have allowed investors to perceive the airline as a good investment.