Pakistani consortium acquires 75% stake in PIA in major privatization move

ISLAMABAD (AP) — A consortium led by a Pakistani investment firm acquired a 75% stake in state-run Pakistan International Airlines on Tuesday during a televised auction, marking a major step in the government’s long-delayed effort to privatize the loss-making national carrier.

The Arif Habib consortium submitted a winning bid of 135 billion rupees ($482 million) for the majority shareholding in PIA, which was once regarded as among the region’s top airlines but has suffered decades of financial losses and mismanagement.

Finance Minister Muhammad Aurangzeb, speaking at the bidding ceremony, said the privatization process was transparent and competitive. He hoped that the new owners would help revive the airline.

The sale fulfills a long-standing demand by the International Monetary Fund, which has repeatedly urged Pakistan to privatize the airline as part of broader economic reforms tied to bailout programs.

The auction comes two months after PIA resumed direct flights to Europe following a decision by the European Union Aviation Safety Agency to lift a four-year ban imposed over safety concerns. The ban was introduced in 2020, after 97 people were killed when a PIA aircraft crashed in Karachi.

Once seen as a model airline, PIA has deteriorated over the years due to political interference and chronic overstaffing. The airline employs about 300 workers per aircraft across its 32 fleet — one of the highest employee-to-aircraft ratios in the industry. Most airlines operate with fewer than 200 employees per aircraft, a common benchmark of productivity.

FILE - In this June 8, 2013 photo, a Pakistani International Airline plane takes off from Benazir Bhutto airport in Islamabad, Pakistan. (AP Photo/Anjum Naveed, File)

FILE - In this March 7, 2011 file photo, a Pakistan International Airlines passenger jet is parked on the tarmac at a military base in Makassar, Indonesia. (AP Photo, File)

COMMERCE CITY, Colo. (AP) — The Colorado Rapids hired Tottenham Hotspur assistant Matt Wells as coach to replace Chris Armas.

The Major League Soccer club made the move Tuesday, nearly two months after parting ways with Armas following his two seasons in charge.

“Matt brings extensive Champions League, Europa League and Premier League experience, a proven commitment to player development, and a clear, exciting tactical identity we believe will position our players to excel for trophies," Rapids President Pádraig Smith said. "His track record of success and his ambitions aligns with our long-term vision for the club, and we look forward to elevating the club to Championship contention under his leadership.”

The 37-year-old Wells was on Tottenham’s staff for two-plus seasons. He previously coached in Tottenham’s academy system.

“I’m a very ambitious individual who has been surrounded by elite players and managers for the past seven years, and I’m excited to bring my experience and winning mentality to this organization," Wells said. “From the very outset of our discussions, it was clear the club shared my ambitions to create something special and compete for the highest honors. Of course, it’s a difficult decision to leave a team playing Champions League football, but everything about the people and project at Colorado made the choice clear for me.”

The Rapids finished 11-15-8 this year, falling short of earning a spot in the MLS Cup playoffs.

AP soccer: https://apnews.com/soccer

FILE - Fulham's assistant manager Matt Wells looks on during warm up before the English Premier League soccer match between Fulham and Southampton at the Craven Cottage stadium in London, Saturday, Dec. 26, 2020. (Adam Davy/Pool via AP, File)