Muhammad Ali responds to concerns over PIA bidders’ airline experience

December 22, 2025 (MLN): The participating groups are fully capable of managing the national carrier despite not having prior experience running a large international airline, said Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission.

He made the remarks while responding to concerns over the limited airline experience of bidders in the privatization of Pakistan International Airlines (PIA).

Responding to questions during an interview with a private media channel, he said that airline management is not limited to aviation-specific backgrounds alone and that strong corporate governance, professional management, and financial capacity play a critical role in turning around complex organizations such as PIA.

He explained that the bidders, including the consortium led by Lucky Group and the consortium headed by Arif Habib Group, have extensive experience in managing large-scale businesses, executing turnarounds, and operating in highly regulated environments.

According to him, this experience can be translated into airline operations through the hiring of professional aviation management teams.

Muhammad Ali acknowledged that airline operations involve specialized areas such as fleet management, route optimization, regulatory compliance, and labor management, but said these challenges can be addressed through international consultants, technical partners, and industry professionals.

He further stated that Air Blue’s participation provides sector-specific insight, while other bidders are expected to engage experienced aviation professionals and global partners after acquiring management control.

Addressing concerns about operational and financial risk, Muhammad Ali said the transaction structure has been designed to mitigate risk, with 92.5% of the sale proceeds to be injected directly into PIA to strengthen its balance sheet and support operational improvements.

He added that the government has ensured job security for employees for at least 12 months and has retained responsibility for pension liabilities, reducing the immediate restructuring burden on the new management.

Muhammad Ali said the government remains confident that private-sector discipline, combined with professional management and capital injection, will enable PIA to overcome its long-standing challenges and return to operational and financial stability.

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