KP’s surprise move to acquire PIA raises eyebrows

PESHAWAR: The Khyber Pakhtun­khwa government’s offer to acquire the struggling Pakistan International Airli­nes (PIA) has sparked debate over whe­ther this is a genuine acquisition bid or an attempt to ‘troll’ the federal government.

On Friday, the KP Board of Investment and Trade (KP-BOIT) sent a letter to the federal Privatisation Minister Aleem Khan, expressing interest in purchasing the national carrier. The letter stated that the province was ready to outbid the current offer of Rs10 billion from the Blue World Consortium.

Aviation expert Qaiser Ansari, who served PIA for nearly four decades, estimated the airline’s actual value to be between Rs60bn and Rs65bn. He argued that PIA could achieve a turnaround under professional management, noting that former leadership appointments, often retired air marshals, were ill-equipped for commercial aviation management.

“There’s a huge difference between flying a fighter jet and managing a commercial airline,” he observed. He said that, unlike PIA, several private airlines in Pakistan are operating profitably, suggesting that a similar outcome could be possible for the national airline.

Experts question province’s intention, say it could set up its own smaller airline; CM aide insists offer is ‘genuine’

Mr Ansari was dismissive of the Rs85bn valuation some might consider, calling it “peanuts” in light of the airline’s potential value if managed effectively.

Adviser to KP Chief Minister on Infor­mation Barrister Muhammad Ali Saif told Dawn that the province’s bid was genuine and not politically motivated. “We are interested in acquiring the airline,” he said, adding that the KP government intended to operate PIA professionally.

He added that the KP government had reviewed the financial and logistical aspects of the proposal, and its offer to buy the national airline was not a shot in the dark.

He urged the federal government to assess the bid on merit, stating there was no reason to dismiss KP’s offer if it was fairly considered.

Meanwhile, KP adviser for finance, Muzzammil Aslam, did not respond to inquiries via calls or WhatsApp messages.

Tahir Imran Mian, a journalist who covers aviation, was sceptical of the genuineness of KP’s bid, suggesting that a more feasible plan would have been to establish a regional airline with a small fleet to improve connectivity within the province.

“If KP was serious about owning an airline, they could set up a smaller provincial airline instead,” he said, noting that this would require fewer resources and potentially attract investors.

He questioned why the provincial government had not participated in the initial bidding process if it was serious about acquiring PIA. “The KP government is just cashing out a headline opportunity,” Mr Mian said.

Published in Dawn, November 3rd, 2024