Pakistan International Airlines to Resume US Flights After Seven-Year Hiatus Amid Privatisation Push

"With FAA negotiations nearing conclusion, PIA prepares to relaunch direct flights to the US while exploring privatisation opportunities with Abu Dhabi and Qatar."

Islamabad [Pakistan], December 14: After a seven-year suspension, Pakistan International Airlines (PIA) is set to resume direct flights to the United States, marking a pivotal development for Pakistan's aviation sector, according to ARY News.

A Memorandum of Understanding (MoU) has been signed with the US Federal Aviation Administration (FAA) to resolve pending financial obligations, according to Nadir Shafi Dar, Director General of Pakistan's Civil Aviation Authority (CAA). Payments to the FAA are expected to be completed soon, with an FAA delegation scheduled to visit Pakistan by February or March 2024.

This move could pave the way for Pakistan to regain its ‘Category One’ status with the FAA, a requirement for resuming direct flights to the US. Before the suspension in 2017, PIA operated six weekly flights to the US, including four to New York and two to Chicago.

Meanwhile, the Pakistani government is intensifying efforts to privatize PIA through government-to-government (G2G) agreements, with a deadline set for December 31, 2024. Abu Dhabi and Qatar have expressed strong interest in acquiring stakes in the airline, creating opportunities for foreign investment. Discussions with both countries are actively underway to finalize terms, ARY News reported.

To attract investors, the Securities and Exchange Commission of Pakistan (SECP) is reportedly offering substantial incentives to facilitate a smooth transition during the privatization process. This comes as part of broader efforts by the government to privatize key assets, including three power distribution companies.

Finance Minister Muhammad Aurangzeb previously stated the government’s intent to complete PIA’s privatization by the end of 2024. However, the process faced delays due to low bidder interest, ongoing legal challenges, concerns about PIA’s ageing fleet, and civil aviation issues.

PIA’s return to US skies and its potential privatization signal a transformative phase for the airline, with the hope of reviving its fortunes and enhancing Pakistan's aviation sector.