Turkish Airlines refutes rumors of PIA acquisition talks

September 25, 2024 (MLN): Turkish Airlines has refuted reports claiming it is in negotiations to acquire Pakistan International Airlines (PIA), as reported by Bloomberg.

In an official exchange filing, the airline stated that the news circulating in various media outlets "does not reflect the truth."

The company clarified that it has no intention of pursuing an acquisition or entering into any agreement with PIA. "There is no undertaking in this direction," Turkish Airlines emphasized, dismissing the rumours.

PIA has been facing financial struggles and restructuring challenges. 

To note, the final draft for Pakistan International Airlines' privatization has been prepared, with 60% of the carrier’s shares set for sale on October 01, a Privatization Commission official said.

The airline's assets are valued at Rs155 billion, while liabilities under PIA-CL amount to Rs200bn.

Instead of an upfront $500 million, the buyer is expected to invest over three years, according to the Secretary of the Commission, with Rs70bn required annually to keep the struggling airline operational.

The carrier, which will be sold at a cumulative loss of Rs45bn, is not currently sustainable, the official revealed.

The bidding process will take place on October 01, with the share transfer to be completed within two months, as outlined during a briefing to the National Assembly’s Privatization Committee.

PIA, which employs 320 certified pilots, will need additional staff to support an expected increase in its fleet.

The airline generates Rs1.5bn annually in Federal Excise Duty (FED) on ticket sales, a figure that is anticipated to double, according to the briefing.

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