Boeing to Revise Aircraft Proposal for Pakistan International Airlines, Finance Ministry Says

KARACHI: Boeing will send Pakistan International Airlines (PIA) a revised proposal to acquire new aircraft, the finance ministry confirmed on Tuesday. This development comes as the recently privatized carrier seeks to expand its fleet and return grounded planes to service.

The revised proposal could help address one of the central challenges facing PIA’s new owners: obtaining aircraft quickly enough to expand routes and improve services. The ministry did not specify how many planes Boeing might offer, what they would cost, or when they could be delivered, and no purchase agreement was announced.

A consortium led by Arif Habib Corporation took control of the formerly state-owned airline in June under a privatization deal involving a total transaction commitment of Rs180 billion ($643 million). Of this, Rs55 billion ($196 million) was designated for the government as sale proceeds, while Rs125 billion ($446 million) is earmarked for investment in PIA, including fleet expansion and modernization.

“The Finance Minister welcomed Boeing’s confirmation that a revised proposal for the acquisition of new aircraft would be shared with PIA, while options for earlier delivery slots and interim leasing arrangements would also be explored,” the finance ministry said in a briefing on Muhammad Aurangzeb’s meeting with Boeing Global President Brendan Nelson in New York.

There was no immediate comment from Boeing. Aurangzeb and Nelson also discussed potential financing from the Export-Import Bank of the United States, alongside engines, spare parts, maintenance, and work to restore grounded aircraft. The ministry did not announce any agreements on financing or leasing.

PIA’s new owners have identified a fleet of at least 25 to 30 aircraft as necessary to operate sustainably and support expansion, according to a US Commerce Department assessment of opportunities in Pakistan’s aviation sector.

The meeting also covered aviation safety and Pakistan’s ambition to restore direct flights to the United States. Restoring direct flights would require US regulatory clearance, as the Federal Aviation Administration assigned Pakistan a Category 2 safety rating in 2020, preventing Pakistani carriers from starting new US services. The finance ministry announced no change to that status.

Aurangzeb also outlined the government’s separate plans to outsource the management of major airports, including those in Islamabad, Karachi, and Lahore.

Source link