Pakistan International Airlines (PIA) announced that it would resume flights to European destinations after the European Union Aviation Safety Agency (EASA) and the European Commission officially lifted a ban imposed in June 2020. This marks a significant milestone following years of compliance improvements and safety reforms by PIA and the Pakistan Civil Aviation Authority (PCAA).
Background of the Ban
The EASA ban was prompted by grave safety issues that emerged after the PIA flight PK8303 crash in May 2020 and unverified licenses of the pilots. The UK Department for Transport, DfT, and other global regulatory bodies followed the move by imposing a ban on PIA operations in their countries. In the last four years, Pakistan undertook huge regulatory reforms such as restructuring PCAA and strengthening the safety oversight, which finally convinced the EU authorities to lift the ban.
Future Routes and Strategic Focus
PIA intends to resume flights to key European cities starting with Paris in the coming weeks. The airline also intends to restart routes to the UK focusing on cities like London, Manchester, and Birmingham. These cities are crucial because of the large number of Pakistani diaspora and economic importance
Financial Consequences and Privatization
This lost revenue was estimated at approximately 40 billion PKR, which is equivalent to about $144 million annually. This increase in earnings could result in enhanced value for PIA at the time of privatization since the government has agreed to sell 60% of its stakes and European routes are restored in an effort to attract competitive bids
While a resumption of European flights has provided some positive news, PIA continues to face significant challenges – including Middle Eastern carrier competition and profitability. Its aging fleet remains a major challenge, as does its minimal market share domestically (23%) and internationally.