In Pakistan, the government is ready to privatize its national carrier airline PIA, while our neighbor India has decided to sell 76% of its stake in Air India. Is privatization of airlines becoming a global trend?
Back in history, British Airways which was a conventional government airline privatized in 1997. Similarly, the Malawi government made three attempts to privatize its national airline, Air Malawi. In 2013 Air Malawi was finally shut down and a privately owned Malawi Airlines was created. Air Jamaica, an airline which was owned by the Jamaican government was privatized in 2011. The airline was sold to Caribbean Airlines. Then in 2015 the merger between Caribbean Airlines and Air Jamaica completed and the latter died down. The national airline of Kenya, Kenya Airways was the first airline in Africa that successfully privatized in 1996. Japan Airlines was established in 1951, it became the national carrier of Japan in 1953 and then in 1987, the airline was privatized. In 2002it merged with Japan Air System. And the list of government-owned airlines, privatization goes on.
So all over the world, it is seen how with time national airlines are privatized.
Reason for privatization of airlines
The government will sell its stakes in an airline and privatize it if the airline is going in loss. Corruption, accidents, mishap, lack of proper system and low wages of the employees are the factors that compel a government to privatize any national airline.
Now airlines want to be privately owned to have more control over air traffic. Also when there will be no interference of a government in the growth of an airline, it can achieve more, this is what private airlines feel.
Well other than the privatization of PIA, the good news for Pakistanis is that six new airlines are ready to take off in Pakistan in 2018.