KARACHI: Pakistan International Airlines (PIA) is on the brink of collapse as a top official of the national flag carrier has warned that flight operations are likely to be suspended by September 15 if emergency funds are not provided, JEE News has learnt.
Speaking to JEE News on Wednesday, a senior director of the national flag carrier said that the number of operational aircraft has been reduced from 23 to 16 due to which several flights have been cancelled.
The official said that aircraft manufacturers – Boeing and Airbus have also suspended the supply of spare parts to PIA due to non-payment and the national airline is losing lakhs of rupees daily due to limited flight operations.
The official also disclosed that one PIA plane was grounded at Dammam airport while four were grounded at Dubai airport for failure to pay for fuel.
The flights were allowed to depart on PIA’s written assurance, the official said, adding that the International Air Transport Association (IATA) had restored PIA services after a contingency payment of $3.5 million.
The official warned that flight operations may be suspended till September 15 if Rs 23 billion in emergency funds are not provided.
Meanwhile, a PIA spokesperson said in a statement that all possible efforts are being made to avoid suspension of flight operations.
A day ago, sources told JEE News that due to lack of funds, PIA’s flight operations have been severely affected and several domestic and international flights have been cancelled.
Insiders said the national flag carrier has requested the government to provide funds immediately.
Moreover, the sources said that the salaries of the PIA employees were also not paid.
PIA’s financial woes
On September 7, PIA had said it had grounded five of its 13 leased aircraft, with four additional aircraft likely to be grounded due to the ongoing financial crisis.
PIA had requested an emergency bailout of Rs 22.9 billion which was rejected by the Economic Coordination Committee (ECC).
The ECC also rejected a request to defer payments of Rs 1.3 billion per month that PIAF makes to FBR on behalf of FED and Rs 0.7 billion per month paid by PIA Civil Aviation Authority (PIA). CAA) as marking charges.
The airline also warned that Boeing and Airbus could suspend the supply of spare parts until mid-September.
Last month, FBR froze 13 bank accounts of PIA for non-payment of Rs 8 billion to the Fed.
