Bidders 'seek daily record' ahead of auction as PIA privatisation enters takeoff phase

• Consortia representatives met PIA CEO on Saturday.
• Bidders seek daily records from airline, commission.
• Retired staff pensions excluded from buyers' liabilities.

KARACHI: Ahead of the December 23 auction of the Pakistan International Airlines (PIA), all four consortia sought daily records from the national flag carrier's administration and the Privatisation Commission, sources told Geo News on Tuesday.

The privatisation phase of the national airline entered its final phase, the sources said, adding that officials from the consortia held a meeting with the PIA's chief executive officer and officers to review operational and financial matters on Saturday.

It was learnt that the bidders have been provided with all records of the airline's domestic and international routes, as well as current and retired employees.

"The responsibility for pensions of retired employees will not rest with the consortium that acquires the airline," the sources said.

The Prime Minister's Secretariat has directed the national airline to extend full cooperation and provide necessary details to all four consortia as the December 23 bidding process approaches, they added.

PM Shehbaz Sharif stated on Thursday that "the entire bidding process, which will be broadcast live, would be transparent and merit-based, adding that these were the government’s top priorities."

The Prime Minister's Office, in a statement, also said the bidding process was progressing smoothly to restore the airline’s “lost glory” and align it with modern requirements.

The government's earlier bid to privatise the entity failed as a $36 million bid from a real estate firm fell short of the $305 million floor price, with concerns over debt, staffing, and limited control.

This time, the government is offering full divestment, has scrapped the sales tax on leased aircraft, and is providing limited protection from legal and tax claims. Around 80% of the airline's debt has been transferred to the state.

Furthermore, the PIA also resumed flights to the United Kingdom, more than five years after a ban over a fake pilot licence scandal was lifted in July. Its European flights were resumed in January after a four-year ban.

Renewed efforts have attracted interest from local business groups, including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser, with final bids scheduled for next week.