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Pakistan International Airlines Corporation Act, 1956 (Repeal by act XV of 2016)

Act· 2016· 20 pages
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Summary

This 1956 act originally established the Pakistan International Airlines Corporation (PIA) as a state-owned body, but it is important to note upfront that this act was repealed by Act XV of 2016 — meaning it no longer governs PIA today and is preserved here mainly for historical reference. Section 3 created the Corporation as a body corporate with the power to own property and sue or be sued, and Section 4 set out its core function: taking over the airline undertaking of the privately-owned Orient Airways Limited and developing safe, efficient air-transport services, both domestic and international, in the country's interest.

Section 4(2) gave the Corporation wide powers beyond just running flights, including operating any commercial or other aircraft services, running hotels and related businesses (added by a later amendment), training aircrew, and even manufacturing or overhauling aircraft parts. Section 5 placed general direction of the Corporation in a Board of Directors, while giving the government power to issue binding policy directives, with the government having final say if there was ever a dispute about what counted as a "policy" matter.

Sections 21 to 24 dealt specifically with the mechanics of absorbing Orient Airways: transferring its undertaking to the new Corporation, winding up and dissolving Orient Airways Ltd, valuing its assets, and allotting shares to its former shareholders. Section 25 covered the Corporation's share capital and Section 27 addressed how the Corporation could eventually be liquidated. Section 31 required all rules and regulations made under the act to be published in the official Gazette and laid before the National Assembly.

Because this act has been repealed, none of its provisions should be treated as currently governing PIA's structure, powers, or operations — readers looking for the law that actually applies to PIA today need to consult Act XV of 2016 and any subsequent legislation, not this 1956 act.

Key topics

Pakistan International Airlinesstate airline corporationOrient Airways takeoverrepealed legislationaviation history

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