Final plans for the new government owned Pakistan Airways (Karachi International) start-up are expected to be approved by Pakistani prime minister Nawaz Sharif in the coming days, Pakistani newspaper The News reports. At the same time a decision on a new chairman for existing flag carrier PIA - Pakistan International Airlines (PK, Islamabad International) is be in the works.

Pakistan Airways is expected to start operations by August 2016 with 10-12 new aircraft and a focus on international routes. It will operate alongside PIA with its own brand according to a memo for the prime minister from which The News is quoting.

Reportedly, the memo mentions financial restructuring, procurement and logistics under Public Procurement Regulatory Authority rules and various legal cases as key issues with the current PIA operation. Despite the launch of Pakistan Airways, PIA is still expected to replace its ageing fleet of A310-300s by A330s later this year. The exact level of future cooperation between the two carriers, Pakistan Airways and PIA is still being reviewed.