Pakistan International Airlines (PIA) has announced the appointment of former Air Vice Marshal Muhammad Amir Hayat as the Chief Executive Officer (CEO) for a duration of one year, as confirmed by a spokesperson of the national carrier. The decision comes amidst a backdrop of restructuring efforts within the airline.
This move comes shortly after the outgoing government’s declaration of its intent to privatize the state-owned PIA, which has been grappling with substantial financial losses and outstanding liabilities. The decision aligns with the directives of the International Monetary Fund (IMF), with whom Pakistan holds a significant arrangement.
Air Vice Marshal Muhammad Amir Hayat has been serving as the acting CEO of PIA since April 2022, stepping into the role following the retirement of the previous chief executive. Despite having the option to appoint Hayat as CEO for a three-year term, the decision was made to appoint him for a one-year term, as stated by Abdullah Khan, the spokesperson of PIA.
Notably, this development coincides with the Cabinet Committee of Privatisation’s endorsement of the hiring of a financial adviser to facilitate transactions related to the Roosevelt Hotel in New York. This property is owned by PIA Investment Limited.
As part of its restructuring efforts, PIA is also aiming to recommence flights to the United Kingdom within the next three months. The airline suspended these services in 2020 following a controversy surrounding pilot licensing.
Pakistan’s commitment to fiscal discipline, as per its $3 billion arrangement with the IMF, encompasses measures like the privatization of loss-making assets. The appointment of Air Vice Marshal Muhammad Amir Hayat as CEO marks a significant step towards enhancing the airline’s operational efficiency and financial sustainability in the face of ongoing challenges.