- Consortium representatives met the PIA CEO on Saturday.
- Bidders seek daily records from airline, commission.
- Retired employee pensions excluded from buyer’s obligations.
KARACHI: Ahead of the December 23 auction of Pakistan International Airlines (PIA), all four consortia sought daily records from the national flag carrier’s administration and the Privatization Commission, sources said Pakinomist news on Tuesday.
The privatization phase of the national carrier entered its final phase, the sources said, adding that officials from the consortia held a meeting with PIA’s managing director and officers to review operational and financial matters on Saturday.
It was learned that the bidders have been given all information about the airline’s domestic and international routes as well as current and retired employees.
“The responsibility for pensions of retired employees will not lie with the consortium that buys the airline,” the sources said.
The Prime Minister’s Secretariat has asked the national airline to extend full cooperation and provide the necessary details to all four consortia as the December 23 tender process approaches, they added.
Prime Minister Shehbaz Sharif said on Thursday that “the entire bidding process, which will be telecast live, would be transparent and merit-based, adding that these were the government’s top priorities.”
The prime minister’s office, in a statement, also said the tender process went smoothly to restore the airline’s “lost glory” and adapt it to modern requirements.
The government’s previous bid to privatize the unit failed when a $36 million bid from a property firm fell short of the $305 million minimum price, with concerns over debt, staffing and limited control.
This time the government is offering full divestitures, has scrapped the sales tax on leased aircraft and provides limited protection against legal and tax claims. About 80% of the airline’s debt has been transferred to the state.
Moreover, PIA also resumed flights to the UK, more than five years after a ban over a fake pilot license scandal was lifted in July. Its European flights resumed in January after a four-year ban.
Renewed efforts have attracted interest from local business groups including Airblue, Lucky Cement, Arif Habib Group and Fauji Fertiliser, with final bids scheduled for next week.
