PIA Returns Under-Utilized Office Space in Cost-Cutting Move Amid Privatization Preparations
Pakistan International Airlines (PIA) is set to return under-utilized office space to its owner, the Pakistan Civil Aviation Authority (PCAA), as part of the airline’s ongoing efforts to reduce expenses and streamline operations ahead of its partial privatization.
A spokesperson for PIA confirmed to ch-aviation that the airline will hand back excess PCAA-owned office space located at its Karachi head office complex. The decision is aligned with PIA’s commitment to cost-saving measures and optimizing resources, particularly in preparation for the impending partial privatization process.
“With the PIA privatization process in full flow, it is imperative that un/under-utilized spaces are returned back to the PCAA in order to save on costs,” stated the PIA spokesperson. The surplus space resulted from PIA relocating several offices to a building in Islamabad owned by the airline.
The spokesperson clarified that discussions with the PCAA led to a formal request for the return of office space, a move sanctioned by the aviation authority. However, leaked information to certain Pakistani media outlets resulted in what the spokesperson termed as “misconstrued out-of-context reporting.”
Pakistan’s caretaker prime minister, Anwaar-ul-Haq Kakar, has expressed expectations for progress in PIA’s partial privatization by January 2024. The government aims to establish a public-private partnership with a foreign airline, granting the foreign entity a 40% stake in PIA in exchange for substantial equity infusion and operational control.
In a related development, officials from the European Union Aviation Safety Agency are conducting a safety audit on PIA. The agency had banned the airline from EU airports in 2020 following safety concerns and issues related to fake pilot licenses. The on-site assessment by the four-member team holds significance, as a successful audit could pave the way for PIA to resume scheduled flights to EU airports.