Issue Brief on “Privatisation of Pakistan International Airlines (PIA)”

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Background:

Established through government’s Pakistan International Airlines Corporation (PIAC) Ordinance on January 10, 1955, by merging with Orient Airways (established 1946), the Pakistan International Airlines (PIA) boasted a rich legacy as Pakistan’s premier national airline. With an ever-expanding fleet and route network, PIA catered to more than 45 global destinations. Under the stewardship of leaders like Air Commodore Nur Khan, PIA witnessed remarkable periods of growth and prosperity. Nur Khan’s forward-thinking leadership during the 1950s and 1960s propelled PIA onto the global stage. However, subsequent shifts in management and market dynamics precipitated a downturn for PIA. The advent of market liberalization in the 1990s ushered in heightened competition, eroding PIA’s market share and international footprint. Despite its illustrious past, PIA struggled to grapple with adapting to the rapidly evolving aviation landscape, characterized by the surge of private and foreign carriers.[1]

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