ISLAMABAD (AP) — A consortium led by a Pakistani investment firm acquired a 75% stake in state-run Pakistan International Airlines on Tuesday during a televised auction, marking a major step in the government’s long-delayed effort to privatize the loss-making national carrier.

The Arif Habib consortium submitted a winning bid of 135 billion rupees ($482 million) for the majority shareholding in PIA, which was once regarded as among the region’s top airlines but has suffered decades of financial losses and mismanagement.

Finance Minister Muhammad Aurangzeb, speaking at the bidding ceremony, said the privatization process was transparent and competitive. He hoped that the new owners would help revive the airline.

The sale fulfills a long-standing demand by the International Monetary Fund, which has repeatedly urged Pakistan to privatize the airline as part of broader economic reforms tied to bailout programs.

The auction comes two months after PIA resumed direct flights to Europe following a decision by the European Union Aviation Safety Agency to lift a four-year ban imposed over safety concerns. The ban was introduced in 2020, after 97 people were killed when a PIA aircraft crashed in Karachi.

Once seen as a model airline, PIA has deteriorated over the years due to political interference and chronic overstaffing. The airline employs about 300 workers per aircraft across its 32 fleet — one of the highest employee-to-aircraft ratios in the industry. Most airlines operate with fewer than 200 employees per aircraft, a common benchmark of productivity.