Hainan Airlines denies plans to acquire PIA Pakistan stake

Discuss issues and news related to PIA, Pakistani airlines and Pakistan's civil & military aviation.
Abdullah
Registered Member
Posts: 702
Joined: Mon Nov 03, 2014 5:16 pm

Hainan Airlines denies plans to acquire PIA Pakistan stake

Post by Abdullah »

Ch-Aviation.com reported;

Hainan Airlines denies plans to acquire PIA Pakistan stake.

Hainan Airlines (HU, Haikou) vice president Pu Ming has rejected reports in the mainstream Chinese media which claimed the Chinese carrier was considering acquiring a 24% stake in PIA - Pakistan International Airlines (PK, Karachi Int'l).

The reports said Hainan wanted to use its foothold in the Pakistani national carrier to enhance its access to Africa as well as Australia, a claim Pu said he had no knowledge of.

China's Xi Jinping paid a state-visit to Pakistan last month during which a USD45 billion deal to construct the China-Pakistan Economic Corridor was signed.

In 2013, Pakistan agreed to dispose of a 24% stake in loss-making PIA as part of the conditions it accepted for a USD6.67billion Extended Fund Facility (EFF) from the International Monetary Fund (IMF).

Pakistan's Minister of State for Privatization, Mohammad Zubair, said last year that PIA's core business would be sold off with government to retain control of ancillary operations such as ground handling and hotels, under a holding company. The state will then sell off each of its interests individually over time.

Though the initial deadline for the stake sale was slated for December of last year, the date was subsequently postponed to June of this year before being deferred once more to October.

Source: Ch-Aviation.Com | May 27, 2015