In a significant move amidst a privatization push, shareholders of the Pakistan International Airlines Corporation Limited (PIACL) endorsed the transfer of operations to the newly established PIA Holding Company Limited (PIAHL) during Saturday’s annual extraordinary general meeting.
The meeting, attended by key stakeholders including government officials and financial experts, witnessed overwhelming support for the proposal.
Discussions revolved around the transfer of operations from PIACL to PIAHL, with shareholders engaging in extensive deliberations on the potential benefits and risks associated with the strategic transition.
Notably, shareholders celebrated PIA’s recent financial turnaround, marked by the company’s reporting of operating profits for the first time in thirteen years. This achievement was credited to strategic initiatives implemented by the administration in response to shareholder feedback.
The meeting also heralded a remarkable 700% surge in PIA’s business, signaling renewed optimism and confidence in the airline’s future. The upcoming commencement of operations in Europe and Britain from June 2024, following successful completion of the International Aviation Safety Assessment (IASA) audit, further underscores PIA’s commitment to global expansion and service excellence.
The government’s unwavering commitment to PIA’s revival was evident, with senior officials actively participating to ensure stringent measures were in place for the airline’s improvement.
The restructuring of PIA into two distinct entities — PIA Corporation and PIA Holding — represents a significant milestone in the privatization process. Under this restructuring, PIAC will oversee flying operations while PIA Holding will manage other assets and liabilities.
In line with recommendations from global financial advisory firm Ernst & Young, the government is exploring measures such as a voluntary retirement scheme and phased retirement of employees to streamline operations and enhance efficiency.
The recent approval by the federal cabinet for the reconstitution of PIA’s inactive board of directors, which had been inactive since October 2023.
