Karachi, Dec 1 2024 – Pakistan International Airlines (PIA) announced that it expects to resume flights to Europe soon, After the lifting of a ban by the European Union Aviation Safety Agency (EASA). The airline is also eyeing several UK destinations as part of its expansion plans.
Resumption of European Flights
PIA’s authorization to operate in the EU was suspended by EASA in June 2020 due to concerns about the oversight capabilities of Pakistani aviation authorities. With the ban now lifted, PIA spokesman Abdullah Hafeez Khan stated that the airline plans to approach the UK’s Department for Transport (DfT) to resume UK routes, with EASA clearance being a crucial prerequisite.
Targeted Destinations
The airline aims to restart flights to Europe, beginning with Paris within the next three to four weeks. In the UK, London, Manchester, and Birmingham are expected to be key destinations once approval is obtained.
Economic Impact
The ban had significant financial implications for PIA, costing the airline approximately 40 billion rupees ($144 million) annually in revenue. With the resumption of European and UK routes, PIA anticipates a boost in revenue and an increase in the airline’s value, especially important as the government looks to sell a 60% stake in the carrier.
Fleet and Market Competition
PIA currently holds a 23% share of Pakistan’s domestic aviation market with a fleet of 34 planes. Despite agreements with 87 countries and key landing slots, PIA faces tough competition from Middle Eastern carriers that dominate with a 60% market share. Khan noted that decisions on leasing new aircraft will be made after the government finalizes its privatization plans.
Future Prospects
The government’s initial attempt to privatize PIA fell short, receiving only a single offer below the asking price. However, with the potential resumption of European and UK routes, PIA is optimistic about increasing its revenue and value during the privatization process.
Summary Points:
- PIA Expects to Resume European Routes: Pakistan International Airlines (PIA) plans to restart flights to Europe after the EU aviation regulator lifts its ban.
- EASA Suspension: The European Union Aviation Safety Agency (EASA) suspended PIA’s authorization in June 2020 due to concerns about aviation standards.
- Focus on UK Destinations: PIA aims to resume flights to the UK, targeting London, Manchester, and Birmingham once approval is obtained.
- Impact of the Ban: The suspension cost PIA approximately 40 billion rupees ($144 million) annually in revenue.
- Government Privatization Plans: The government plans to sell a 60% stake in PIA, aiming to increase the airline’s value with the resumption of European routes.
- Future Route Expansions: Decisions on leasing new aircraft will be made post-privatization discussions, with new routes expected to boost revenue.
- PIA’s Domestic Market Position: Despite agreements with 87 countries, PIA holds a 23% share of Pakistan’s domestic aviation market and faces strong competition from Middle Eastern carriers.