The Competition Commission of Pakistan (CCP) has approved the acquisition of 100% shareholding of Pakistan International Airlines Corporation Limited (PIA) by PIA Holding Company Limited (Holdco). This move marks a significant step towards the government’s plan to restructure and potentially privatize the national airline.
Holdco, a government-owned public limited company, will take over specified assets, liabilities, and subsidiaries of PIA. While PIA offers a range of aviation and allied services including engineering, handling, cargo, and training, the core aviation activities will remain with the company.
The relevant market identified by CCP for this transaction is the real estate market, as PIA owns properties across the country. However, CCP’s assessment concluded that the acquisition would not lead to Holdco dominating this market post-transaction.
This approval signifies CCP’s commitment to supporting the government’s economic revival plan by facilitating mergers and acquisitions that do not create undue market dominance. Additionally, it aligns with the government’s efforts to attract investment through the Special Investment Facilitation Council (SIFC).
With CCP’s greenlight, the restructuring of PIA takes a crucial step forward, paving the way for potential future privatization and modernization of the national airline.
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