KARACHI: The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of Pakistan International Airlines Corp by a consortium led by Arif Habib Corp, clearing a key step in the government’s privatisation drive.
The CCP said it authorised the transaction following a Phase I review under the Competition Act, 2010, concluding that the deal does not create or strengthen a dominant position or materially reduce competition in any relevant market.
The buyer, PIA Equity Ltd, is a special purpose vehicle incorporated in January by a group including Arif Habib Corp, Fatima Fertilizer Co, Lake City Holdings, City Schools and AKD Group Holdings. The consortium was selected through a competitive bidding process overseen by the Privatisation Commission.
In its assessment, the CCP examined several segments, including domestic and international passenger air travel, cargo services, postal carriage and aviation-related technical services. It found that Pakistan’s aviation sector remains competitive, particularly on international routes where global carriers such as Emirates, Qatar Airways and Etihad Airways have a strong presence.
Domestic routes also show active competition from private airlines including Airblue, AirSial, Fly Jinnah and Serene Air, providing consumers with multiple options and limiting the scope for market power, the regulator said.
The commission noted that PIA’s market share has declined in recent years amid operational challenges, underscoring sustained competitive pressures.
The transaction was classified as a conglomerate merger, with no horizontal or vertical overlaps between PIA and the acquiring entities, reducing the likelihood of competition concerns.The CCP said the privatisation could improve operational efficiency and service quality, while reducing the airline’s reliance on government support and fostering a more commercially driven aviation market.The approval is limited to competition considerations and remains subject to other regulatory requirements and clearances, the commission added.
operational challenges, underscoring sustained competitive pressures.
The transaction was classified as a conglomerate merger, with no horizontal or vertical overlaps between PIA and the acquiring entities, reducing the likelihood of competition concerns.The CCP said the privatisation could improve operational efficiency and service quality, while reducing the airline’s reliance on government support and fostering a more commercially driven aviation market.The approval is limited to competition considerations and remains subject to other regulatory requirements and clearances, the commission added.
