Punjab govt denies buying PIA, to launch its own new airline

LAHORE: Denying reports that emerged earlier claiming that the Punjab government has expressed interest to buy the Pakistan International Airline (PIA), the provincial government has decided to launch a new airline called “Punjab Air” on the instructions of Pakistan Muslim League-Nawaz President and former prime minister Nawaz Sharif.

In a statement, Senior Provincial Minister Marriyum Aurangzeb clarified that the Punjab government has no plans to buy the PIA.

Aurangzeb urged against spreading false news about the provincial government’s interest in acquiring PIA.

According to sources, the Punjab government intends to launch “Punjab Air” in collaboration with private investors, with feasibility studies set to begin soon.

The sources said that discussion is under way for the Punjab government to hold shares in Punjab Air.

Talking to journalists in London, Nawaz Sharif had said that the Punjab government was evaluating the possibility of either acquiring PIA or launching a new airline. “I suggested that they either consider buying PIA or start a new airline,” he had said.

On October 31, during the final bidding process for PIA’s privatisation, Blue World City, a real estate development company, placed a single bid of Rs10 billion for a 60 per cent stake in the national flag carrier. However, the auction could be complted as the Ministry of Privatisation had set the minimum price for PIA’s privatisation at Rs85 billion.

After the bidding, Blue World City’s Chairman Saad Nazir had said, “If the government chooses not to accept our offer, we wish them well.”

Officials from three other groups who opted not to participate in the bidding process told Reuters on the condition of anonymity that they had concerns about the government’s ability to follow through on long-term agreement for the PIA.

Earlier, Federal Minister for Privatisation Abdul Aleem Khan has said that Pakistan International Airlines (PIA) could not be sold at a throwaway price.

Addressing a press conference in Lahore, he said that as a privatisation minister, it was his responsibility to facilitate the airline’s sale not to restructure it.

Aleem Khan said that the privatisation process for PIA had started six months prior to his assuming charge of office, and he could not alter the existing framework for its privatisation.