CCP approves consortium’s acquisition of PIA

ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of Pakistan International Airlines Corporation Limited (PIA) by PIA Equity Limited, a special purpose vehicle set up by a consortium that includes Arif Habib Corporation, Fatima Fertiliser, Lake City Holdings, City Schools and AKD Group.

According to a statement issued on Wednesday, the transaction forms part of the government’s privatisation drive. The consortium was declared the successful bidder through a competitive process conducted under the supervision of the Privatisation Commission.

The CCP said its review of the deal covered domestic and international passenger air transport, cargo operations and aviation-related technical services. After examining the relevant markets, the regulator concluded that the transaction did not raise competition concerns.

Competition review

In its assessment, the commission said Pakistan’s aviation sector continues to be highly competitive, especially on international routes. It noted the strong presence of global airlines including Emirates, Qatar Airways and Etihad Airways in those markets.

For domestic operations, the CCP said competition also remains active, with carriers such as Air Blue, Air Sial, Fly Jinnah and Serene Air serving major routes across the country.

The commission also noted that PIA’s share in the market has declined over time because of operational difficulties.

According to the statement, the proposed transaction was reviewed as a conglomerate merger. The CCP said there were no horizontal or vertical overlaps in the deal that would create competition-related issues.

Part of privatisation process

The approval marks a regulatory step in the proposed transfer of PIA to the consortium-backed vehicle. The government has been pursuing the airline’s privatisation, and the bidding process was overseen by the Privatisation Commission.

The statement said the consortium secured the bid through a competitive process. With the competition regulator’s clearance now in place, the transaction has crossed another stage in the privatisation initiative outlined by the government.

The CCP’s findings were based on its examination of passenger transport, cargo services and technical aviation segments, as well as the structure of the transaction itself. The regulator said the acquisition would not result in a dominant market position or a substantial reduction in competition in the sectors reviewed.