PIA plans to resume flights to Europe soon. How will this benefit travelers?

After years of efforts during which it lost PKR 40 billion annually, Pakistan International Airlines (PIA) is once again set to fly in European skies.

The recent green light received by the airline — Pakistan's national flag carrier — by the European Union Aviation Safety Agency (EASA) means that it is "as safe as European airlines", its spokesman Abdullah Hafeez told Nukta in an interview.

The airline will resume operations to Europe at the start of 2025, beginning with Paris and then Oslo and Copenhagen. The airline is also considering expanding operations to Spain and Italy. "We are in talks with UK regulators, having already fulfilled the prerequisites for EASA approval. Hopefully, we will be able to fly to the UK by April 2025," he added.

This resumption could result in an increase of PKR 70 billion in revenue for the PIA, which has been bogged down by financial troubles for years.

Furthermore, the resumption of direct flights to various European destinations is expected to benefit Pakistani travelers by not only providing more convenience but also reducing airfares due to increased competition, Hafeez stated.

International airlines remit up to $5 billion annually and if PIA started taking up more of the market share, it could benefit the country, according to the spokesman.

The resumption, however, requires investment, including technical assistance for the present fleet. However, if necessary, PIA has earmarked funds to buy or lease more aircraft, the spokesman revealed.

Hafeez also pointed out that four years ago, before the ban on flights to Europe and the UK, they accounted for 37% of PIA's revenue, about PKR 40 billion annually. With the full restoration of operations, the airline expects to generate up to PKR 70 billion, factoring in inflation.

The removal of the flight ban from Europe has increased PIA's earning potential and is expected to improve the airline's valuation, according to Hafeez.

The Pakistani government has initiated a plan to sell stakes of PIA under an agreement with the International Monetary Fund.

The Privatization Commission recently received a solitary bid from Blue Water City for PKR 10 billion, which was rejected as it was much below the reference price of PKR 85 billion. The government intends to sell 60% stakes in PIA.