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PIA to sell aircraft spare parts before privatization | The Express Tribune

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ISLAMABAD:

In a significant move ahead of the privatization of Pakistan International Airlines (PIA), the airline’s management has announced the sale of additional spare parts for various categories of aircraft, worth millions of rupees.

The management, keen to rationalize resources, has decided to put up for sale spare parts for Boeing 737, Boeing 707, Fokker and Cessna aircraft, by launching a call for tenders for interested parties.

Sources reveal that these spare parts have been stored in PIA’s inventory for several years. Management has chosen to launch calls for tenders for the sale of spare parts for these aging aircraft, “as is”.

Interested parties are invited to submit their applications to participate in the tender process, with the deadline set for April 29, as confirmed by the PIA administration.

Furthermore, an extraordinary annual general meeting of the national airline PIA is scheduled for April 20 to address the issue of privatization.

All shareholders of the airline have been cordially invited by PIA management to participate in the meeting. Shareholders will be briefed on critical issues, with a particular focus on the privatization of PIA.

Read also: PIA Holding Company approves debt restructuring of Rs268b

During the meeting, detailed discussions will take place regarding the various measures involved in the privatization process.

This development comes as the government, together with national banks and development finance institutions (DFIs), successfully concluded negotiations regarding PIA’s commercial debt, marking an important step on the path to privatization of the national company.

According to the agreed agreement, the domestic commercial debt of Pakistan International Airlines Company Ltd (PIACL) will be transferred to PIA Holding Company Ltd, a newly created entity by the federal government as part of the legal restructuring process of PIACL.

According to a statement issued by PIACL on Friday, the development paved the way for the filing of a Scheme of Arrangement (SoA) for the legal separation of PIACL from the Securities and Exchange Commission of Pakistan (SECP).

The federal cabinet had already approved the segregation plan on February 6 this year, signaling a crucial step in the ongoing restructuring efforts.

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