Pakistan Names AirBlue Among Four Bidders for PIA Stake

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AirBlue has been named one of four prequalified bidders for a majority stake in Pakistan International Airlines (PIA), the government announced. The Karachi-based airline is the only aviation company among the shortlisted contenders for the struggling flag carrier.

According to the Ministry of Privatisation, the Privatisation Commission Board approved the shortlist during a July 8 meeting. The other three interested parties are investment consortiums involving some of Pakistan’s largest industrial groups:

  • Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures
  • Arif Habib Corporation, Fatima Fertiliser, City Schools, and Lake City Holdings
  • Fauji Fertiliser Company

These groups will now enter the due diligence phase, which is expected to take two to two and a half months. Final bidding and negotiations are scheduled for Q4 2025.

The Pakistani government is looking to divest 51% to 100% of PIA as part of broader reforms under a USD 7 billion International Monetary Fund (IMF) program. The move aims to reduce the financial burden of state-owned enterprises and attract private investment to revive the airline.

In a related development, the Cabinet Committee on Privatisation also approved a joint venture model for the Roosevelt Hotel in New York, a PIA-owned asset. The hotel, closed since 2020, was leased to New York City in 2023 as a migrant shelter, but the lease is set to end in 2024. The JV approach is expected to maximize the property’s long-term value for Pakistan.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com

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