Jinnah gave the first government airline to Pakistan, why is it being sold now?

A video of a Pakistani airline went viral in September 2024. In this, the pilot wipes the window of the plane with a cloth before going into the cockpit. As you must have seen a car or truck driver cleaning the windscreen of the vehicle. This made a lot of fun of Pakistani airlines on social media. Users were taunting that Pakistan and its pilots are so backward even after so many years of independence.

Pakistan is undoubtedly very backward on the economic front. The aviation sector is also no exception to this. This is the reason why many crew members of Pakistan’s government aviation company ‘Pakistan International Airlines’ (PIA) disappear ‘mysteriously’. PIA itself has also confirmed this. Actually, taking asylum and then citizenship in Canada is easier than other western countries. After disappearing there, crew members easily make a career in the aviation industry.

Let us know how old is the history of Pakistani Airlines, when and how did it start? The most important thing is how Pakistan International Airlines reached the verge of being sold.

How old is the history of airlines in Pakistan?

India and Pakistan were officially partitioned on 14 August 1947. But, Pakistan’s founder Mohammad Ali Jinnah had been demanding a separate country on the basis of religion for a long time. Jinnah was confident that the British government and the top leaders of India would be forced to accept his demand. Therefore, he started gathering the necessary infrastructure for his ‘new country’ even before independence.

Airplanes played a very important role in the Second World War. This included services like movement of troops and logistics. The use of aircraft was also increasing for the movement of passengers, because it was much faster than all other means of travel. This was the reason why Jinnah started arranging an airline for Pakistan even before independence.

How was the foundation of Pakistan’s first airline laid?

To fulfill his purpose, Jinnah sought financial help from two rich businessmen Mirza Ahmed Ispahani and Adamji Haji Dawood. Both of them were also supporters of the demand for a separate country on the basis of religion. With the efforts of these three, Orient Airways was registered in Calcutta (Kolkata) on 23 October 1946. It was the only Muslim airline during the British rule. India had Tata Airlines, whose foundation was laid by JRD Tata about two decades before this.

When Pakistan became a separate country after India gained independence, Orient Airways started a relief operation in the new country, operating a fleet of three Douglas DC-3 aircraft. In the next two years, Orient Airways deployed its new Convair aircraft on routes connecting Karachi to Delhi, Calcutta and Dhaka. Till here everything was fine for Orient Airlines. The number of its flights was increasing. The airline was also earning a good amount of money in terms of passengers.

When and how did the bad times of Orient Airways start?

Orient Airways began to suffer losses in the early 1950s as strong competitors such as British Overseas Aircraft Corporation (BOAC) entered the market. The Pakistani government began subsidizing its domestic airline so that Orient Airways could compete with BOAC and other airlines. The Pakistan government also paid for three Lockheed L-1049 Super Constellations for Orient Airways’ new subsidiary. This later became “Pakistan International Airlines (PIA)”.

At the time, Pakistan was the only Muslim and Asian country to fly a long-haul airline. On 1 October 1953, the Pakistani government took full control of Orient Airways and merged it with PIA to form the airline of today. Despite the merger, Orient Airways continued to operate under its own name for many years.

How did Pakistan International Airlines reach the brink of being sold?

Pakistan is neck deep in debt. The International Monetary Fund (IMF) has given Pakistan a loan of $7 billion to save it from bankruptcy. But, it has put a condition that the Pakistan government will have to reduce its expenses. This includes selling Pakistan International Airlines, which is in debt. The total assets of Pakistan Airlines are around 152 billion Pakistani rupees. This includes aircraft and operational routes. Around 7,100 employees currently work in Pakistan Airlines. Out of this, 2,400 employees work on daily wages. The airline has a debt of about Rs 1 billion and is continuously going into losses. The biggest problem is that since the year 2020, the European Union has banned this airline, because some pilots were caught with fake licenses.

After that, the Shahbaz Sharif government started looking for buyers for the airline. In June, the Pakistan government pre-qualified 6 groups. Out of this, real estate development company Blue World City was finalized as the last bidder.

How many bids were received to buy Pakistan International Airlines?

The Pakistan government had set a minimum price of 85 billion Pakistani rupees to sell its airlines. If seen in Indian rupees, it is about Rs 250 crore. The Pakistan government intended to sell 60 percent stake in the airline at this price. But, the bidder offered only 10 billion Pakistani rupees (about 30.25 crore Indian rupees). This amount was just one-eighth of the price fixed by the Pakistan government.

IIn IPL 2024, Kolkata Knight Riders bought Mitchell Starc for around Rs 25 crore. This means that Pakistan’s government airline can be purchased by investing Rs 5 crore more than this.