Miguel Praga

🚀 Pakistan International Airlines (PIA), struggling with a $3 billion debt and annual losses of $270 million, failed to sell at an auction in October. The government's initial sale price was $306 million, but the highest bid received was only $36 million. Privatization Minister Abdul Aleem Khan is now offering a second auction with an additional incentive of $95 million in tax exemptions for buyers. Further fiscal benefits are hinted, contingent on the potential buyers' plans for the airline. Despite losses, the government retains hope in PIA's profitability, as unspecified Gulf companies show interest.

✈ Air Europa's majority owners, the Hidalgo family (80%), are in talks to sell up to 20% of the company to Air France-KLM, a deal that could surpass €100 million, exceeding the amount paid by IAG during the pandemic. The Spanish airline reported a record profit of €165 million in 2023, despite a consolidated negative net worth of €455.3 million at year's end. The Hidalgo family had previously injected €65 million into the airline to prevent its dissolution.

🏬 Ontario teachers' pension fund in Canada is selling its shares in several airports including London City, Birmingham, Bristol, Copenhagen, and Brussels, with ownership stakes ranging from 25% to 70%. They're leveraging the current aviation boom and have offered existing stakeholders a 30-day preferential purchase period, with Australian fund Macquarie showing strong interest. Meanwhile, Canadian fund PSP is buying Ferrovial's majority stakes in Aberdeen, Glasgow, and Southampton airports, in contrast to the Ontario fund's divestment.

🚀 China Southern, one of China's three major state-owned airlines, has listed all of its GEenx-1B engine-equipped Boeing 787-8s for sale. The offer requires the purchase of the entire fleet, not parts. The oldest aircraft dates back to May 2013. Interested parties needed to express interest before this Monday, and a condition report for each aircraft will be available on the 30th. China Southern owns a total of 650 aircraft but seeks to standardize its fleet, choosing to retain its 18 Boeing 787-9s. The 787-8 model has recently seen one aircraft be dismantled, highlighting the high value of spare parts amid manufacturing delays. In comparison, Air Europa operates 23 Boeing 787s, including both 787-9 and 787-8, without issues.

✈ Finnair canceled 300 flights due to pilot strikes on December 9 and 13, affecting over 30,000 customers. The airline, which is recovering from a major business model shift prior to 2023, formerly relied on transporting travelers across Siberian airspace to the Far East via Helsinki as a hub. The closure of Russian airspace has forced reroutes through Iran, but Finnair has successfully undergone a radical austerity program and route reinvention. Pilots now seek better salary conditions after previously accepting limited terms.