Aviation
Pakistan’s National Airline Set for Privatization as Elections Loom
As Pakistan gears up for elections on February 8, the caretaker administration is finalizing plans to sell the financially struggling Pakistan International Airlines (PIA).
The move, considered a bold step in light of past government hesitations, comes as part of the country’s commitment to reform state-owned enterprises under a $3 billion bailout agreement with the International Monetary Fund (IMF).
The decision to privatize PIA was made just weeks after the signing of the IMF agreement in June. The caretaker administration, in power since August and tasked with overseeing the upcoming elections, has been granted authority by the outgoing parliament to take necessary measures to meet IMF-imposed budgetary targets.
Minister for Privatisation Fawad Hasan declared, “We’re 98% done,” expressing confidence in the progress made. The other two percent, he clarified, is going to the cabinet to solicit approval for the plan, which was created by transaction adviser Ernst & Young. The cabinet would decide whether to sell the stake through a government-to-government agreement or a tender process, Fawad said.
A 51% stake in PIA with complete management control will be sold, according to the report from Reuters, which is anticipated to be unveiled before the caretaker administration’s term ends after the election. In the extensive 1,100-page report from Ernst & Young, it is explained that the airline’s debts would be divided into different entities to ease the process of privatization.
The accomplishments of the caretaker administration were highlighted by Fawad, who pointed out that they completed in four months what previous administrations had found difficult to complete in over a decade. The next government’s decision is likely to be heavily influenced by the status of PIA’s privatization, particularly if they plan to ask the IMF for more funding after the current bailout programme ends in March.
Aviation
Aeroflot Buys Used Planes for Spare Parts Amid Sanctions
In the face of ongoing Western sanctions that have severely impacted Russia’s aviation industry, Aeroflot, the country’s largest airline, has devised a strategic plan to bolster its fleet’s spare parts inventory.
The airline is set to acquire five Boeing 737-800BCF freighters from Atran Airlines, a move that will allow it to dismantle the aircraft for critical components. The planes, which will be transferred to Aeroflot’s low-cost subsidiary Pobeda, will not be converted into passenger jets but instead will be stripped for valuable parts to support existing operations.
United Airlines Brings Holiday Cheer with Free North Pole Flights
Aeroflot’s plan to purchase these Boeing 737-800BCF freighters comes as part of a broader strategy to mitigate the effects of Western sanctions, which have crippled the Russian aviation sector. With the sanctions restricting access to essential aircraft parts and spare components, Aeroflot is exploring alternative ways to maintain and repair its fleet.
Instead of converting the freighters from cargo to passenger planes, a process deemed “unreasonably expensive” under current sanctions, the airline intends to focus on extracting high-value components such as engines, landing gear, avionics, and other essential systems.
The deal will be structured in a way that allows Aeroflot to indirectly purchase the freighters through an insurance settlement with the aircraft’s lessor, AerCap.
Top 10 World’s Busiest Airports of 2024
The Russian government’s insurance company will reimburse the aircraft’s value, and the planes will then be leased back to local operators. This method circumvents some of the restrictions imposed by international sanctions while ensuring that the airline gains access to the necessary components to support its fleet.
By dismantling the aircraft for spare parts, Aeroflot aims to secure critical resources for the ongoing maintenance of its existing fleet. Components from the Boeing 737-800BCF freighters, such as engines and avionics, are expected to be reused in other aircraft within Aeroflot’s network, ensuring that the airline can keep its operations running smoothly
-
Aviation1 week ago
Airbus Plans Cockpit Toilet to Make Single-Pilot Operations a Reality
-
Defence2 months ago
Which Country Has the Largest Fleet of Fighter Aircraft?
-
Airlines3 weeks ago
DAMAC Air: Dubai’s New Luxury Airline Offers Free Flights for Registration
-
Airlines2 weeks ago
Air India to Launch aircraft maintenance training institute in Bengaluru
-
Airport2 months ago
Western Sydney Airport Welcomes Its First Plane After 6 Years of construction
-
Aviation2 months ago
Did you know ? Once Boeing 747 carried 1088 passenger in 1991
-
Travel2 weeks ago
This country tops visa rejections in the popular Schengen countries
-
Airlines3 weeks ago
Flying to Europe or the UK? Air India Introduces New Baggage Charges