The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of Pakistan International Airlines Corporation Limited (PIA) by M/s PIA Equity Limited after completing its Phase-I review under Section 11 of the Competition Act, 2010.
The deal is part of the federal government’s ongoing privatisation programme. M/s PIA Equity Limited is a Special Purpose Vehicle (SPV) formed on January 9, 2026, by a consortium including Arif Habib Corporation Limited (AHCL), Fatima Fertilizer Company Limited (FFC), Lake City Holdings (Private) Limited (LCH), City Schools (Private) Limited (CSPL), and AKD Group Holdings (Private) Limited (AKD). The group emerged as the successful bidder through a competitive process conducted by the Privatization Commission.
According to the CCP, its assessment covered key segments such as domestic and international passenger air travel, cargo operations, postal services, and aviation-related technical services. The regulator found the aviation sector to be highly competitive, especially on international routes, where major global carriers like Emirates, Qatar Airways, and Etihad Airways already operate.
In the domestic market, competition remains active with airlines including Airblue, AirSial, Fly Jinnah, and Serene Air operating across major routes, providing passengers with multiple choices and limiting any concerns over market concentration.
The Commission noted that PIA’s market share has steadily declined over time due to operational difficulties, reflecting continued pressure from competing airlines.
The transaction has been classified as a conglomerate merger, as the acquiring consortium is not active in the same markets as PIA. The absence of horizontal or vertical overlaps meant no structural competition issues were identified.
After its review, the CCP concluded that the deal does not create or strengthen a dominant position in any relevant market and is unlikely to reduce competition. The transaction has therefore been approved under applicable law.
The regulator added that PIA’s privatisation is expected to improve efficiency, enhance service delivery, reduce reliance on state support, and strengthen competition in the aviation sector.
It clarified that while the competition approval has been granted, the transaction remains subject to other regulatory and legal clearances.
The CCP reaffirmed its commitment to facilitating investment and privatisation while ensuring fair competition, consumer protection, and market efficiency.
