A month after the government failed to privatize the Pakistan International Airlines (PIA), the national flag carrier got a reprieve—from Europe.
Four years ago, a tragic plane crash in Karachi had killed 97 people, triggering calls for a greater focus on safety standards. Rather than addressing the concerns, then-aviation minister Ghulam Sarwar Khan fueled the flames by alleging—without evidence—that more than 150 PIA pilots had ‘dubious’ licenses.
The startling allegation on the floor of the National Assembly sent shockwaves globally, with Europe, the U.K., and the U.S. all banning PIA from operating direct routes to their territories. The ban from the European Union Air Safety Agency (EASA) specifically noted the airline’s failure to properly implement a safety management system. The Ministry of Finance said the ban cost the airline an estimated Rs. 40 billion annually.
The lifting of the ban, as announced by Defense Minister Khawaja Asif, restores direct air links between Pakistan and Europe. A PIA spokesperson has said the initial phase of resumptions will commence in a few weeks with flights to Europe. Flights to the U.K. will remain suspended until British authorities issue their own decision.
The EASA decision is a much-needed respite for PIA. Just a month ago, the government failed to privatize it after fetching a sole bid of Rs. 10 billion against a minimum price of Rs. 85 billion. A key reason for the lack of interest, per aviation experts, was PIA’s lack of access to major revenue generating routes to Europe and the United States. Restoration of the European routes—with hopes for Britain and the U.S. to follow shortly—resolve this issue. The government says it is committed to privatizing the national flag carrier; this may help Islamabad achieve the sale whenever authorities proceed to a new round of bidding.
An immediate benefit to Pakistani travelers, meanwhile, will be direct flights from European destinations to their homeland. This would ultimately also boost travel to the country—so long as the airline can also improve its fleet and facilities. This is a chance for PIA to rebuild its reputation. Long-term success, however, will depend on sustained improvements in safety, service quality, and financial management to regain the trust of both travelers and potential investors.