Pakistan International Airlines (PIA) has resumed direct flights between Islamabad and Paris,
marking a significant milestone in the airline’s recovery after a European Union ban. The first
flight departed on Friday, following the European Commission and European Aviation Safety
Agency’s (EASA) decision to lift the suspension imposed in 2024. The airline will operate two
weekly direct flights to the French capital.

The resumption of flights to Paris signifies a major victory for PIA, which faced a crippling blow
when EASA suspended its permission to operate in European airspace. The ban, implemented
after Pakistan launched an investigation into the validity of pilots’ licenses following a fatal
plane crash in 2023 that claimed 97 lives, severely impacted the airline’s operations and
financial stability.

The financial repercussions of the ban were substantial. According to Minister of State for
Finance and Revenue Ali Pervaiz Malik, who addressed the National Assembly in June 2024, the

suspension cost PIA nearly Rs40 billion ($143.73 million) in annual revenue. This financial strain
compounded the challenges faced by the already loss-making national carrier.

PIA holds a 23% share of Pakistan’s domestic aviation market, but its 34-plane fleet struggles to
compete with Middle Eastern carriers, which dominate the market with a 60% share. The lack
of direct flights to key European destinations, despite having agreements with 87 countries and
securing crucial landing slots, significantly hampered PIA’s competitiveness. The government’s
attempt to privatize the airline also encountered setbacks, receiving only one offer far below its
asking price.

The lifting of the EU ban follows a year-long process, including a visit by an EASA team and the
European Commission to Pakistan in 2024. This visit facilitated a thorough assessment of PIA’s
safety protocols and operational procedures, ultimately leading to the reinstatement of its
flight permits.

The news has been met with widespread celebration. Prime Minister Shehbaz Sharif expressed
his congratulations to the public, highlighting the resumption of flights’ importance for overseas
Pakistanis.

In a statement released by the Prime Minister’s Office (PMO), he emphasized the positive
impact of direct flights on the Pakistani diaspora, stating that the resumption of flights to
Europe will significantly benefit Pakistanis living abroad. He also acknowledged the substantial
financial losses and reputational damage suffered by PIA during the suspension period.
Pakistan’s government remains steadfast in its commitment to privatize the financially troubled
Pakistan International Airlines (PIA), actively seeking a buyer for the national carrier. To
enhance PIA’s attractiveness to potential investors, who had previously hesitated due to the
airline’s substantial debt, the government has decided to transfer PIA’s accumulated losses to a
holding company. This restructuring aims to present a financially cleaner and more appealing
investment opportunity.

Recent attempts to sell the airline have faced challenges. A potential deal collapsed late last
year when a prospective buyer submitted a bid significantly below the government’s asking
price.

However, the government is optimistic that the recent resumption of flights to Europe,
anticipated to be followed by the reopening of UK routes later this year, will significantly
improve PIA’s market value and attract more favorable offers from potential buyers. The
increased revenue and improved image associated with expanded European operations are
expected to bolster the airline’s selling potential.