ISLAMABAD: The Pakistan International Airlines (PIA) has formally requested the Airport Coordination Limited (ACL), the world’s leading airport slot coordinator, to grant lease of its two London Heathrow slots to Saudi Airlines for 2025, a PIA spokesperson said on Sunday.
Pakistan was forced to lease out its slots at European airports after the European Union Aviation Safety Agency (EASA) suspended PIA’s authorization to operate in the bloc in June 2020 due to concerns about the South Asian country’s ability to comply with international aviation standards.
The suspension, followed by restrictions from the UK and US authorities, came after an investigation into the validity of pilots’ licenses following a deadly PIA plane crash in Karachi that killed 97 people. In Nov. 2024, EASA lifted the ban and allowed PIA to resume flights, and the airline last month resumed Europe operations, with a flight from Islamabad to Paris.
“PIA has formally requested a slot swap with the ACL for its London Heathrow operations in summer 2025 to lease two returning slots from Vietnam Airlines to Saudi Airlines from April 5 till October 25,” PIA spokesperson Abdullah Hafeez Khan told Arab News.
When PIA first faced restrictions from the EU, the national flag carrier used the “babysitting option” to preserve its slots by leasing them to Turkish Airlines, Saudi Airlines and Vietnam Airlines, according to the PIA spokesperson.
“We took this step to preserve our slots as securing slots at Heathrow Airport is extremely difficult and PIA had 10 slots, which we leased to three airlines, six to Turkish Airlines and two each to Saudia and Vietnam Airlines,” he said, adding that the lease is renewed every six months.
“With Vietnam Airlines’ lease for these two slots ending on April 5, we have now allocated them to Saudi Airlines, which will have a total of four PIA slots at Heathrow for the next summer season.”
While PIA has resumed Europe operations, the debt-ridden airline remains barred from operating flights to the UK and the US.
Last month, a delegation of the UK’s Department for Transport and Civil Aviation Authority visited Pakistan to examine aviation safety protocols, review documentation, evaluate operational procedures, and airlines to assess compliance with international standards, according to the Pakistan Civil Aviation Authority (PCAA). Based on the team’s report, the UK Safety Review Board will decide on the possibility of restarting PIA operations in the country during its meeting on March 12-13.
“Once Pakistan receives permission to resume its own flights to the UK, we will gradually reclaim these slots for our own operations,” Khan said.
Pakistan had grounded 262 of its 860 pilots, including 141 of PIA’s 434, whose licenses were deemed “dubious.” The investigation ultimately did not reveal any major concerns but the suspension remained in place.
Pakistan’s government has said it is committed to privatizing the debt-ridden airline and has been scrambling to find a buyer. Late last year, a deal fell through after a potential buyer reportedly offered a fraction of the asking price.
PIA posted losses of $270 million in 2023, according to local media. Its liabilities were nearly $3 billion, about five times the total worth of its assets.
The government hopes the opening of European routes, which officials expect will be followed by a similar announcement by the UK later this year, will boost PIA’s selling potential.
Pakistan state airline leases two more London Heathrow slots to Saudia for 2025, official says
https://arab.news/c878p
Pakistan state airline leases two more London Heathrow slots to Saudia for 2025, official says
- Pakistan leased out its European airport slots to preserve them after it was banned from flying to the bloc in 2020
- Out of 10 PIA Heathrow slots, six were being operated by Turkish Airlines, two each by Saudia and Vietnam Airlines
Pakistan backs replacement of electricity-intensive fans ahead of summer
- Finance ministry sets aside $7 million guarantee to support bank financing
- Government seeks rapid scale-up after pilot with 11 commercial banks
KARACHI: Federal Minister for Finance Muhammad Aurangzeb on Thursday reaffirmed support for a government-backed fan replacement program aimed at reducing electricity consumption ahead of the summer peak season, as authorities seek to ease pressure on the power system and promote energy conservation.
The initiative allows consumers to replace older, electricity-intensive fans with energy-efficient models through bank financing. To encourage commercial banks to participate, the Ministry of Finance has allocated Rs2 billion ($7 million) as a 10 percent first-loss risk guarantee, designed to absorb part of the credit risk and facilitate lending to households.
“From the perspective of the Ministry of Finance, the initiative remains a high priority, and the Ministry will continue to provide all necessary support to the Power Division to ensure its successful implementation and rapid scaling,” the finance minister said in a statement.
Electric fans are among the most widely used appliances in Pakistan, especially during the long and intense summer months when electricity demand typically surges and contributes to strain on the national grid.
According to the finance ministry, the program was formally launched on Thursday after a pilot phase conducted in collaboration with the State Bank of Pakistan (SBP) and 11 commercial banks.
During the trial phase, around 186 energy-efficient fans were installed, with disbursements of approximately Rs1.35 million ($4,800) benefiting 67 borrowers.
Officials said the financing and digital systems required to process applications and disburse funds are now operational, paving the way for expansion.
Aurangzeb said the next phase would focus on scaling up the program more rapidly in coordination with the SBP and commercial lenders so that its benefits are realized sooner rather than over a 10-year horizon.
