PIA denies selling 10 aircraft engines

ISLAMABAD: Pakistan International Airlines (PIA) issued a statement dismissing the claims made by the Society of Aircraft Engineers (SAEP) regarding the sale of 10 aircraft engines at cheap prices, ARY News reported.

PIA spokesperson dismissed the allegations made by the newly elected body of SAEP, describing it as ‘regrettable’.

The spokesperson clarified that there is no truth to the selling of ten aircraft engines at low prices. He added that the engines mentioned are totally “inefficient” and their sale is being conducted through a tender following all standard rules and regulations.

The spokesperson emphasised that the sale of unusable engines is a routine practice in the aviation industry, with full compliance with public procurement laws. The revenue from this sale will be used to purchase spare parts for aircraft.

The spokesperson added that PIA’s pension and provident funds have already been transferred to PIA Holding Company, and all dues and pensions are being paid promptly to both current and retired employees. A hiring freeze is in place at PIA following the Supreme Court’s orders since 2017, except for essential contract positions required to meet SCCP standards.

Earlier on October 31, the final bidding process for the privatisation of PIA attracted just one bid of 10 billion Pakistani rupees ($36 million) for a 60% stake in the national flag carrier.

The government had pre-qualified six groups in June, but only real-estate development company Blue World City participated in the bidding process, placing a bid that is below the government-set minimum price of 85 billion Pakistani rupees.

Pakistan was looking to offload a 51-100% stake in debt-ridden PIA to raise funds and reform state-owned enterprises, as envisaged under a $7 billion International Monetary Fund programme.

The Privatisation Commission said it had asked the bidder to match the minimum bid.

Blue World City Chairman Saad Nazir however stood by its offer. “We wish the government all the best if they don’t want to accept our bid,” he said during the ceremony.

Nazir later told Reuters news agency that it did not make commercial sense to raise their bid.