Pakistan International Airlines (PIA) is confronting a fresh legal challenge after a constitutional petition was filed in the Islamabad High Court, questioning the legality of the airline’s ongoing privatisation. The petition seeks to halt the sale and annul the government-approved transaction finalized late last year.

The case concerns the proposed transfer of a 75 percent stake in PIA, headquartered in Islamabad, to a private consortium. The legal action comes as the government moves forward with what it describes as a landmark reform aimed at reviving the financially troubled national carrier and ensuring long-term operational sustainability.

The Cabinet Committee on Privatisation approved a Rs135 billion bid from a consortium led by the Arif Habib Group for a controlling stake in the airline. The offer exceeded the government’s reference price of Rs115 billion by nearly 35 percent, making it the highest bid in the process.

In addition to the acquisition cost, the consortium has committed to investing between Rs80 billion and Rs125 billion into PIA. These funds are earmarked for fleet modernisation, balance sheet strengthening, and operational restructuring—measures the government considers critical for restoring the airline’s competitiveness and reliability.

The transaction was formally concluded on December 23, 2025, following an Expression of Interest issued on May 7, 2025. Officials have maintained that the sale structure aims to safeguard investor confidence while enabling the state to exit direct airline management.

The petition, filed by Advocate Nabeel Javed Kahloon, contends that the privatisation violates the Pakistan International Airlines Corporation (Conversion) Act, 2016. He argues that PIA qualifies as a trans-provincial institution listed under the Federal Legislative List, Part II, and that any decision to privatise such an entity requires approval from the Council of Common Interests under Article 154 of the Constitution—a step, he claims, that was not taken.

The petition also asserts that Parliament did not authorise the sale and that Sections 3 and 4 of the 2016 Act mandate that any restructuring or asset transfer remain within government-controlled entities. On this basis, the petitioner maintains that the cabinet committee’s decision exceeds its legal authority.

Advocate Kahloon further disputes the government’s financial justification for the privatisation, arguing that claims of PIA being a persistent fiscal burden are misleading. He notes that the airline has not received regular government grants or subsidies, and that its financial challenges primarily stem from debt servicing, governance lapses, and policy decisions, rather than operational losses.

The petition also contests assertions that PIA’s valuation is substantially below its accumulated losses of around Rs800 billion. It alleges misuse of authority, lack of transparency, and arbitrary decision-making in the sale process. Additionally, the filing challenges a December 2023 amendment to the Privatisation Commission Ordinance, arguing that the clause limiting high court jurisdiction does not apply to constitutional matters.

The petitioner has asked the court to declare the December 23, 2025, sale agreement null and void and to suspend all actions related to the May 2025 Expression of Interest.

Riyadh Air and Saudia have announced the implementation of the first phase of their Strategic Cooperation Agreement, marking a major step in strengthening connectivity under Saudi Arabia’s National Aviation Strategy.

The partnership builds on a Memorandum of Understanding signed in November 2023 and enables the two airlines to expand travel options for domestic and international passengers.

As part of the first phase, Riyadh Air has established a connection with Saudia’s Passenger Service System (PSS), allowing the carriers to implement their codeshare across their respective technology platforms.

Under the RX-SV codeshare, Riyadh Air will place its “RX” designator on selected Saudia-operated flights from Riyadh’s King Khalid International Airport to six domestic destinations: Abha, Al Qassim, Dammam, Jeddah, Medina and Tabuk.

The agreement will give Riyadh Air passengers access to additional destinations worldwide through convenient connections in Riyadh. For example, travelers from Dammam can connect via Riyadh to Madrid on a single ticket, while passengers flying from Kuala Lumpur can connect through Riyadh to Medina.

By using Saudia’s frequent services between Riyadh and the six codeshare destinations, Riyadh Air will offer passengers more convenient connections aligned with the arrival and departure schedules of its flights at Riyadh.

Both airlines operate within the King Khalid International Airport Terminal 1-4 complex, enabling passengers to benefit from streamlined connections, single-ticket journeys and through-checked baggage to their final destinations.

The first phase represents a significant step toward deeper cooperation between Saudi Arabia’s two national carriers and supports the Kingdom’s broader ambitions to expand its global aviation network.

Source: aaco.org

SalamAir has announced the establishment of Salalah’s first-ever airline base, marking a major step in the airline’s expansion and strengthening direct international connectivity from Oman’s Dhofar Governorate.

The new Salalah-based operation will initially serve three international destinations: Jeddah in Saudi Arabia, Chattogram in Bangladesh and Calicut in India. Bookings opened on August 26, with flights scheduled to begin from the end of October as part of SalamAir’s Winter 2026 schedule.

The base follows SalamAir’s expanded operations during the 2026 Khareef season, when the airline increased capacity on the Muscat-Salalah route to as many as 15 daily flights during peak periods.

The airline also introduced special domestic fares for Omani nationals, with one-way tickets starting from OMR 9.99, supporting affordable travel between Muscat and Salalah.

The new base is expected to extend SalamAir’s role beyond the Khareef season by supporting year-round travel demand among residents and expatriate communities in Dhofar while offering more direct access to key regional and international destinations.

Operations from Salalah will be supported by SalamAir’s Airbus A320neo and A321neo fleet. The airline currently operates 18 aircraft, providing additional flexibility to support growing demand across its network.

During the winter season, SalamAir will also operate charter flights linking Salalah with Astana and Almaty in Kazakhstan, supporting inbound tourism from Central Asia.

The Salalah base forms part of SalamAir’s wider strategy to expand its network from key airports across Oman, develop underserved markets and stimulate new travel demand while supporting the growth of the Sultanate’s aviation and tourism sectors.

Source: ZAWYA