Pakistan International Airlines eyes UK flights as EU ban is lifted
Once PIA gets approval for UK flights, London, Manchester, Birmingham, and other key cities would be the most sought-after destinations.
PIA’s authorisation to
operate in the EU was suspended in
2020 over safety compliance concerns
By Eastern EyeDec 06, 2024
PAKISTAN International Airlines (PIA) said last Sunday (1) it expects to resume European routes soon and is eyeing several UK destinations after the EU aviation regulator lifted its bar on the flag carrier.
The European Union Aviation Safety Agency (EASA) suspended PIA’s authorisation to operate in the EU in June 2020 over concerns about the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards.
“PIA plans to approach the UK’s Department for Transport (DfT) for UK route resumption, as EASA clearance is a prerequisite for their decision,” PIA spokesman Abdullah Hafeez Khan told Reuters.
EASA and UK authorities suspended permission for PIA to operate in the region after Pakistan began investigating the validity of pilots’ licenses following a deadly plane crash that killed 97 people.
Khan said the airline expects to resume flights to Europe, starting with Paris, within the next three to four weeks.
Once PIA gets approval for UK flights, Khan said London, Manchester, Birmingham, and other key cities would be the most sought-after destinations.
PIA and the government, which is aiming to sell a 60 per cent stake in the carrier, had urged EASA to lift the ban, even provisionally. The ban cost the airline 40 billion rupees (113.6m) annually in revenue.
Khan said the company has sufficient cash flow to add new routes. Decisions on leasing new aircraft will be made after the government finalises privatisation discussions, he said.
The lossmaking national carrier has a 23 per cent stake in Pakistan’s domestic aviation market, but its 34-plane fleet can’t compete with Middle Eastern carriers which hold a 60 per cent market share, due to a lack of direct flights, despite having agreements with 87 countries and key landing slots.
The government’s attempt to privatise the airline fell flat when it received only a single offer, well below its asking price.
AMSA said India, Brazil, the USA, the EU, the UK, China, Malaysia, Mexico, Canada and Australia had taken strong protection measures for their steel industries. (Photo: Getty Image)
ArcelorMittal South Africa (AMSA), part of Lakshmi Mittal’s steel group, said it is still considering closing its long steel production business as it waits for the South African government to implement a rescue plan for the domestic industry.
In January, AMSA announced plans to stop operations at its long steel manufacturing plants, affecting over 3,500 jobs. The Industrial Development Corporation later stepped in with some measures.
Despite this, AMSA reported a R500 million loss for the six months ended June 2025, according to its consolidated financial statements released this week.
“ArcelorMittal South Africa continues to face significant challenges with no improvement in market conditions over the previous period. The prolonged negative international steel cycle remains, ensuring that global and domestic steel markets remained under pressure in spite of some price improvement, notably in China during July,” the company said.
It said the possibility of closing the long steel plants, announced in November last year, still existed to ensure viability. “Enhancing the balance sheet will depend on the outcome of the ongoing IDC transaction. Should a sustainable solution not be reached, the company will proceed with the planned permanent wind-down of the longs business.
“In that event, ArcelorMittal South Africa will promptly initiate monetisation of assets, including Saldanha Steel, the Tubular Mill, the Vereeniging Bar Mill, ArcelorMittal Rail and Structures, and other non-core properties. Proceeds will be applied to strengthen the balance sheet, to reduce debt, and will be reinvested into the flats business to support improvements in earnings and cash flow in order to preserve core business continuity,” it added.
AMSA said India, Brazil, the USA, the EU, the UK, China, Malaysia, Mexico, Canada and Australia had taken strong protection measures for their steel industries.
It said the South African government had introduced initiatives but there had been limited progress in implementing measures that addressed constraints.
The company cited major rail service interruptions caused by cable theft, leading to locomotive failures. It said it had offered to help with security on key rail routes and taken other cost and mitigation steps.
“On two occasions during the past six months, the risk of uncontrolled blast furnace stops arose due to major rail service interruptions. Additional unplanned road transport had to be deployed, resulting in higher direct, operational, and handling costs of some R317 million, more than double that of R127 million in 2024,” AMSA said.
With regular power cuts from state-owned Eskom, losses during the period rose to R41 million from R25 million a year earlier.
AMSA said South Africa could maintain and grow a viable steel industry if government commitments were turned into real and immediate action. “The top two priorities currently are to ensure that there is a vibrant level of steel demand accessible to South African steel producers; and second, that the high levels of imports are dramatically reduced,” it said.
It added that about 68 per cent, or 5,18,000 tonnes, of current steel imports could be produced locally. “Once these priorities are addressed, the industry will be in a much stronger position to progress with investment to improve localisation levels with the aim of completely replacing imports, while turning attention to the issue of decarbonisation,” it said.
The company also said action against illicit trade and corrupt and collusive dealings was not being addressed.
AMSA was formed from the former state-owned steelmaker Iscor, which Mittal turned around before acquiring.
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Balaji has been Group chief financial officer of Tata Motors since November 2017 and a non-executive director on JLR’s board since December 2017.
JAGUAR LAND ROVER (JLR) has appointed PB Balaji as chief executive officer (CEO), effective November 2025. He will succeed Adrian Mardell, who is retiring after three years as CEO and 35 years with the company.
N Chandrasekaran, chairman of Jaguar Land Rover PLC, Tata Motors and Tata Sons, said: “I would like to thank Adrian for the stellar turnaround of JLR and for delivering record results. I am delighted to appoint Balaji as the incoming CEO of the company. The search for a suitable candidate to lead JLR has been undertaken by the Board for the past few months and after careful consideration it was decided to appoint Balaji. He has been associated with the Company for the past many years and is familiar with the Company, its strategy and has been working with the JLR leadership team. This move will ensure that we continue to accelerate our journey to Reimagine JLR.”
Mardell said: “These three years have been a great privilege. Together with the incredible JLR workforce, we have cemented JLR’s position in the automotive industry during a time of incredible change. I would like to thank everyone in JLR and the extended Tata Group, and wish Balaji every success in his new role.”
Balaji said: “It is my privilege to lead this incredible company. Over the past 8 years I have grown to know and love this company and its redoubtable global brands. I look forward to working with the team to take it to even greater heights. I thank Adrian for his immense contributions and wish him well for his next innings.”
Balaji has been Group chief financial officer of Tata Motors since November 2017 and a non-executive director on JLR’s board since December 2017. He has 32 years of experience in automotive and consumer goods industries and has worked in Mumbai, London, Singapore and Switzerland.
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THE BANK OF ENGLAND on Thursday reduced its key interest rate by 0.25 percentage points to 4 per cent, the lowest level in two and a half years, as it looked to support the UK economy amid continued concerns over US tariffs.
The central bank also forecast that the British economy would grow by 1.25 per cent this year, a slight improvement from its earlier estimate of 1 per cent.
"The direct impact of US tariffs is milder than feared but more general tariff-related uncertainty still weighs on sentiment," the BoE said in a statement.
In May, London and Washington reached an agreement to cut tariffs of more than 10 per cent imposed by US president Donald Trump on certain UK-made products imported by the US, especially vehicles.
Thursday’s rate reduction marked the BoE’s fifth cut since it began a rate-trimming cycle in August 2024.
"Interest rates are still on a downward path, but any future rate cuts will need to be made gradually and carefully," said BoE governor Andrew Bailey.
The BoE’s primary objective is to maintain the UK’s annual inflation rate at 2.0 per cent. However, the most recent data showed inflation had risen to an 18-month high in June.
The Consumer Prices Index climbed to 3.6 per cent, with motor fuel and food prices remaining elevated.
Weak economy
Official data showed the UK economy contracted for a second consecutive month in May, and unemployment reached a near four-year high of 4.7 per cent.
The contraction has been attributed in part to prime minister Keir Starmer’s Labour government raising UK business taxes from April. That same month, the country became subject to Trump’s 10 per cent baseline tariff on most goods.
Finance minister Rachel Reeves welcomed the BoE’s decision.
"This fifth interest rate cut since the election (win by Labour in July 2024) is welcome news, helping bring down the cost of mortgages and loans for families and businesses," she said in a statement.
Last week, the US Federal Reserve held interest rates steady, resisting political pressure from Trump to lower borrowing costs to stimulate the US economy.
Asked about tariffs, Fed chair Jerome Powell said at a press conference, "We're still a ways away from seeing where things settle down."
The European Central Bank is expected to keep interest rates unchanged at its next meeting, as eurozone inflation remains close to its two per cent target. However, economists have noted this could change depending on the impact of Trump’s tariffs on the euro area.
THE popular Indian restaurant chain in the UK, Dishoom, has secured its first major outside investment, with the business now valued at around £300 million.
L Catterton, an investment firm backed by luxury giant LVMH, has bought a stake in the restaurant group to help fund its expansion plans, including opening its first American restaurant next year, reported the Times.
Dishoom was started by cousins Shamil Thakrar and Kavi Thakrar in 2010 with a single restaurant in London's Covent Garden. The restaurants are designed to feel like the old Iranian cafés that were popular in Bombay during the 1960s.
The concept quickly caught on with customers, who often queue for long periods to get a table. The company now runs ten outlets across the UK and four more cafés under the Permit Room brand, employing about 2,000 people.
Business has been growing strongly. The company's income rose by 23 per cent to £116.8 million in 2023, whilst profits before tax jumped by 56 per cent to £7.4 million, according to official company records.
This marks the first time the founders have brought in outside investors since starting the business. The cousins will continue to run the day-to-day operations alongside chief executive Brian Trollip, who took the top job last year after working with the company for 14 years.
The new investment will help Dishoom expand into overseas markets, with plans to open in the US in 2026.
L Catterton is a major investment firm that manages about $37 billion worth of assets. The company specialises in mid-sized consumer brands and has stakes in well-known names like Birkenstock shoes, fashion brand Ganni, and bakery chain Ole & Steen.
Last year it bought a stake in Value Retail, which owns Bicester Village shopping centre, in a £1.5 billion deal.
Shamil said the investment opens up exciting possibilities: "It is wonderful to be contemplating the international opportunities ahead of us. As ever, even more important than growth and expansion is keeping our focus strongly on deepening our hospitality — on providing guests with the most delicious food and the warmest service in beautiful restaurants and continuing to make sure Dishoom is one of the very best workplaces in hospitality."
Miray Topay, a partner at L Catterton, praised the restaurant chain: "We are absolutely delighted to be partnering with Dishoom. What the team has created is a truly exceptional business by all measures."
She added: "We look forward to supporting Shamil, Kavi, Brian and the team as they continue to grow the business in the UK and beyond. We look forward to leveraging our deep understanding of consumers and our experience in the restaurant industry to support Dishoom as they expand, and allow more people to experience their wonderful and distinct hospitality."