ISLAMABAD: Adviser to the Prime Minister on Privatisation Muhammad Ali on Tuesday said the buyer of Pakistan International Airlines remains fully capable of managing the national carrier. He said prior experience running a large international airline is not essential for success.
He made the remarks while responding to criticism over bidder’s limited airline-specific backgrounds.
Muhammad Ali also serves as chairman of the Privatisation Commission. He said concerns about airline experience misunderstand how complex organisations are successfully restructured.
Corporate Governance Seen as Key to Turnaround
According to Muhammad Ali, airline management requires more than aviation knowledge alone. He said strong corporate governance, professional leadership, and financial discipline play a decisive role.
He added that many global airlines recovered through sound management practices. These practices included cost control, transparency, and performance-driven leadership.
He explained that PIA’s challenges reflect long-standing governance and financial weaknesses. Therefore, he said a capable corporate owner can address them effectively.
Muhammad Ali stressed that running large organisations demands strategic thinking. He said this skill often matters more than sector-specific experience.
Bidders Have Proven Business Track Records
The adviser highlighted the background of the bidding groups. He said the consortium led by Lucky Group brings experience in managing diversified enterprises.
Similarly, he said the consortium headed by Arif Habib Group has handled large-scale businesses. These groups have also executed successful corporate turnarounds.
According to him, both groups operate in highly regulated environments. He said this exposure prepares them for aviation oversight and compliance.
Muhammad Ali added that such experience can translate into airline operations. He said new owners can hire seasoned aviation professionals to manage daily operations.
Specialised Challenges Can Be Outsourced
Acknowledging the complexity of airline operations, Muhammad Ali listed several specialised areas. These include fleet management, route planning, regulatory compliance, and labour relations.
However, he said these challenges are manageable. He explained that international consultants and technical partners can provide expertise.
He added that global airlines often rely on external specialists. Therefore, he said PIA’s future owners can follow similar models.
Muhammad Ali also noted that Air Blue’s participation adds industry insight. He said other bidders are likely to engage aviation professionals after acquiring control.
Transaction Structure Designed to Reduce Risk
Addressing financial and operational concerns, Muhammad Ali outlined safeguards in the transaction structure. He said 92.5 percent of sale proceeds will go directly into PIA.
This injection, he said, will strengthen the airline’s balance sheet. It will also support operational improvements during the transition period.
He further said the government has taken steps to protect employees. According to him, job security has been guaranteed for at least 12 months.
In addition, the government will retain responsibility for pension liabilities. He said this decision reduces immediate pressure on new management.
Government Expresses Confidence in Privatisation Plan
Muhammad Ali said the government remains confident in the privatisation strategy. He said private-sector discipline can deliver lasting reform.
He added that professional management and fresh capital can restore stability. According to him, PIA can overcome long-standing challenges under new ownership.
He concluded that the goal remains operational recovery and financial sustainability. He said the privatisation process aims to secure the airline’s future.
