Renowned businessman Arif Habib has said that the new management is set to revamp Pakistan International Airlines (PIA) and explore opportunities with the Pakistan National Shipping Corporation (PNSC) by improving service quality, resuming flights on profitable routes, expanding the fleet, and hiring additional staff.
Speaking to members of the Council of Energy and Economy Journalists (CEEJ) in Karachi, he said the new management will induct professionals from the aviation sector and enhance the capacity of existing staff in line with operational requirements.
Arif Habib Corporation is not primarily a large financier but has expertise in forming consortia and attracting local and foreign investors. In the case of PIA, the consortium includes Fauji Fertilizer with a 25 percent stake, Arif Habib and Fatima Group with another 25 percent, and Citi School and AKD holding the remaining 25 percent.
The group is also exploring opportunities to acquire stakes in other state-owned enterprises, including Pakistan National Shipping Corporation (PNSC), which is performing better than PIA. Discussions in this regard have already been held with the Privatization Commission.
PNSC is also planning to expand its operations through the induction of additional vessels, he added.
After taking charge, the new PIA management plans to gradually increase its fleet by 38 aircraft and hire the necessary professionals to support operations across all departments, including pilots, cabin crew, engineers, and quality assurance managers.
He noted that around 6,500 permanent and 2,500 contractual employees are currently working at PIA, compared to 13,000 in the past when the airline operated a full fleet. Therefore, he said, the new management will certainly hire more aviation professionals, with preference given to Pakistani nationals.
The new management has no plans to lay off existing employees. Instead, it will provide training and allow more than one year for performance improvement according to the required standards. There will be zero tolerance for negligence, particularly in matters related to flight safety, passenger services, and punctuality, he added.
“I served as a board member at PIA and closely observed the airline’s performance when it was being run by competent professionals. Pakistani aviation experts not only serve domestic airlines but also play key roles in many foreign carriers around the world,” he said.
As part of the business plan, the new management will expand flight operations in both domestic and international markets. Due to a shortage of aircraft, PIA’s market share has declined locally and globally; however, the airline will resume flights on various routes, said Arif Habib, who heads the consortium that has acquired a 75 percent stake in PIA.
PIA will continue operations on long-haul routes to Canada, the United States, and European destinations. This will facilitate overseas Pakistanis through direct flights, enabling them to reach their destinations within 12 to 14 hours instead of 20 to 22 hours on connecting flights at higher fares.
PIA also caters to pilgrims traveling for Hajj, Umrah, and other religious tourism (Ziyarat), which remain among the airline’s most profitable segments. The airline has traditionally been the preferred choice of overseas Pakistanis, which is expected to help restore its profitability and market share.
Additionally, the new management will focus on expanding its cargo business to facilitate trade and generate premium returns.
The consortium has committed an investment of Rs. 132 billion in the national flag carrier. The airline’s liabilities and maintenance expenses for grounded aircraft are estimated at up to Rs. 70 billion. The new management intends to invest in aircraft induction and essential infrastructure to ensure smooth operations and improved passenger service quality.
The stability of the rupee against the dollar, lower oil prices, and reduced markup rates are creating a conducive environment for the aviation business, which is generally considered low-margin and highly risky.
The new management expects that turning losses into profits will take time but aims to make the national carrier “great again” by restoring its past glory, Arif Habib said.