The loss-making Pakistan International Airlines (PIA) is set for a major overhaul as its new owner announced plans to renovate aircraft, improve punctuality, and expand the fleet to 64 planes following the airline’s privatization, Arab News reported.
The new owners plan to invest about $400 million in PIA over the next seven years to absorb initial losses and fund fleet expansion and operational improvements. Around two-thirds of this investment is expected to be injected at takeover, anticipated in April, with the remainder to follow later.
According to Arif Habib, PIA is likely to continue posting losses for one to two years before returning to profitability, but said investors expect reasonable returns in the medium to long term.
“We will renovate the check-in counters and aircraft cabins, replace seats, and install entertainment systems,” Arif Habib said, adding that strict flight punctuality would be key to restoring passenger confidence.
Speaking in an interview with Arab News, Arif Habib, CEO of the Arif Habib Group, said the new management will initially focus on improving passenger experience and enforcing operational discipline.
A Pakistani consortium led by the Arif Habib Group acquired a 75 percent stake in the loss-making national carrier on December 23 for Rs. 135 billion, valuing PIA at around Rs. 180 billion.
PIA currently operates a fleet of 19 aircraft. Habib said the airline plans to expand this to 38 planes in the first phase, and then increase the fleet to 64 planes in the second phase over the coming years.
He said limited aircraft availability has prevented PIA from fully serving high-demand routes, particularly to the UK, United States, and Canada.
Habib confirmed that discussions are underway with the US Federal Aviation Administration to resume flights to the United States, which were suspended following regulatory issues in previous years.
Under the privatization agreement, the airline’s name and logo will remain unchanged, although Habib said changes such as staff uniforms could be considered later to refresh the brand.
The consortium may also exercise its option to acquire the government’s remaining 25 percent stake and bring in a foreign airline as a strategic partner.
PIA’s privatization is a key condition under Pakistan’s $7 billion IMF program.