KARACHI: The recently privatized Pakistan International Airlines (PIA) will continue to face financial losses for another few years before start making profits, its new owner said on Monday, promising to do all it takes to revive the Pakistani carrier.
A Pakistani consortium, led by Arif Habib Group, on Dec. 23 secured a 75% stake in PIA for Rs135 billion ($482 million) after several rounds of bidding, valuing the airline at Rs180 billion ($643 million).
The sale marked Pakistan’s most aggressive attempt in decades to reform the debt-ridden airline, which had accumulated more than $2.8 billion in financial losses. The government said it would end decades of state-funded bailouts and help revive the airline.
Arif Habib, CEO of Arif Habib Group, said the airline will take time to start giving “reasonable” returns to its investors, including AKD Group Holdings, Fatima Fertilizer Company, City Schools, Lake City Holdings and Fauji Fertilizer Company, a publicly listed firm owned by Pakistan’s military.
“It may take about one to two years’ time because in initial period of one to two years, we may see some losses but into medium term, I think, that would be turned around,” Habib said in an exclusive interview with Arab News.
