Air Karachi is the latest would-be Pakistani start-up carrier to emerge following a failed bid to sell a majority stake in PIA - Pakistan International Airlines (PK, Islamabad International). The planned airline is a joint venture involving local business leaders and corporate investors and appears to be led by Atif Ikram Sheikh, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

Sheikh told Pakistani news outlets that investors had already pledged an initial seed funding of PKR5 billion rupees (USD18 million), with further financing to be arranged. Initially the airline intends to operate with three leased aircraft on domestic sectors before expanding to international routes.

"[Our] approach will deliver price competitiveness, value, growth, and sustainability," he declared. "We need to bring this model to Pakistan.”

Pakistan's Geo TV News reported that the initial lead investors are the chairman of AKD Group, Aqeel Karim Dhedhi; the chairman of Arif Habib Limited, Arif Habib; industrialist and educationist Bashir Janmohammad; former FPCCI president Zubair Tufail; former FPCCI senior vice presidents Hanif Gohar and Khalid Tawab; chairman of PVMA and former KATI president Sheikh Umer Rehan; and chairman of Tabani Group Hamza Tabani, among others. Air Karachi's first CEO is retired Air Vice Marshal Imran Qadir.

They are basing their business model on AirSial (PF, Karachi International), a successful Sialkot-focused carrier owned by local business figures that began flying in 2020 and has since expanded into international operations.

Sheikh's proposal is one of several that have emerged since the Pakistani government failed to sell a majority stake in state-owned flag carrier PIA in late October. An auction attracted a single offer of PKR10 billion (USD36 million) for 60% of PIA, far below the government's reserve price of PKR85 billion (USD306 million). The bidder argued that his offer reflected what PIA was worth.

“Pakistan cannot attract substantial foreign investment or tourism without an airline that meets international standards and operates with integrity,” said Sheikh.

Air Karachi has registered with the Securities and Exchange Commission of Pakistan and has submitted a licence request to the federal government.