LAHORE – The bidding process of financially struggling Pakistan International Airlines PIA remains murky as most of the firms decided against the move amid plethora of challenges related to national air carrier.
As the aviation giants Air Blue, Fly Jinnah and others opted out, Blue World City decided to move ahead for big chunk in auction slated for October 31. Blue World City, the real estate tycoon behind Suno News, decided to bid for a 60pc stake as a lone bidder.
The company’s Chairman Saad Nazir confirmed the development to a leading wire service. The company met all basic requirements to participate in the bidding process, while the government will retain the remaining shares.
The business giant however kept bidding amount and other details under wraps but revealed that the group is looking to run Islamabad International Airport operations.
PIA, the national air carrier with over 10,000 employees, is currently burdened with massive debt of around Rs800 billion and is now relying on bailout funds to survive. The airline with 29 planes is undergoing a restructuring plan that will split it into two entities: TopCo, which will handle core operations, and HoldCo, tasked with managing legacy debts and non-core assets.
This privatization effort is part of broader strategy to reform state-owned enterprises under bailout agreement with the IMF.
PIA privatisation hits roadblocks as buyers reject key conditions
