Pakistan International Airlines (PIA) is set for a major transformation following its privatization, with plans to renovate aircraft, improve punctuality, and expand the fleet to 64 planes. The Arif Habib Group-led consortium, which acquired a 75 percent stake for Rs. 135 billion, aims to restore passenger confidence and operational efficiency over the next seven years.
The new owners will inject around $400 million to cover initial losses, fund fleet expansion, and modernize operations. Two-thirds of the investment will be deployed at takeover, expected in April, with the remainder phased over the coming years. CEO Arif Habib emphasized renovations to check-in counters, aircraft cabins, seats, and entertainment systems, along with strict flight punctuality as core priorities.
Currently, PIA operates 19 aircraft. The airline plans to expand the fleet to 38 planes in the first phase, followed by 64 planes in the second phase, addressing limited availability on high-demand routes to the UK, US, and Canada. Discussions with the US Federal Aviation Administration are underway to resume flights to the United States, previously suspended due to regulatory issues.
The privatization of PIA is a key condition under Pakistan’s $7 billion IMF program. While the airline’s name and logo remain unchanged, management may refresh elements like staff uniforms. The consortium may also acquire the government’s remaining 25 percent stake and explore bringing in a foreign strategic partner to strengthen operations. Analysts project that PIA may continue posting losses for 1–2 years before turning profitable, with medium to long-term returns expected.
“We will renovate the check-in counters and aircraft cabins, replace seats, and install entertainment systems. Strict flight punctuality will be key to restoring passenger confidence,” said Arif Habib, CEO of Arif Habib Group.