PIA enters new era as Arif Habib Consortium takes control

ISLAMABAD: Pakistan International Airlines (PIA) entered a new chapter in its history on Monday as management of the national flag carrier was formally transferred to PIA Equity Ltd, a special purpose vehicle of the Arif Habib-led consortium, following the completion of its privatization process.

The transition marks a major milestone in the government's efforts to revive the airline through private sector investment and management, with the new owners pledging to modernize operations and restore PIA's standing among leading international carriers.

The takeover follows the completion of all local and international regulatory requirements, including approvals from global lenders and tax-related clearances, enabling the transfer of management and operating control of Pakistan International Airlines Corporation Limited (PIACL) to the consortium.

PIA Equity Ltd has acquired 100 percent ownership of the airline under a transaction valued at around Rs180 billion. The consortium comprises Arif Habib Group, Fatima Fertilizer Company Ltd, Fauji Fertilizer Company Ltd, Lake City Holdings (Pvt) Ltd, The City School (Pvt) Ltd and AKD Group Holdings.

Under the deal, Rs55 billion will be paid to the Government of Pakistan as divestment proceeds, while Rs125 billion will be injected into the airline as fresh equity to support operational restructuring, fleet modernization, route expansion and service enhancements.

Addressing the occasion, the chairman of the new ownership said the change in management represented more than a corporate transition, emphasizing that winning the confidence of the Pakistani people would remain the airline's foremost priority.

"As the new ownership officially takes over today, we deeply understand that the trust of a nation isn't simply transferred on a document. Trust is earned—mile by mile, smile by smile, year by year. We know this, and we accept the challenge wholeheartedly," he said.

He added that while PIA was entering a new phase, its commitment to passengers and its legacy would remain unchanged.

"PIA will continue to honor its deep-rooted heritage while building a premium, modern aviation experience. Our journey forward is a collective commitment to excellence, proving once again why we are, and always will be, 'Great People to Fly With'," he said.

With legacy liabilities addressed and operating rights successfully transferred, the new management said it is fully capitalized and prepared to improve service standards, renew the airline's fleet and position PIA to compete more effectively with leading international carriers.