The General Authority of Civil Aviation (GACA) Saudi Arabia has issued a notice to Pakistan International Airline (PIA) for payment of $48 million to avoid suspension of operations including Hajj flights.
This has been disclosed in the recently held meeting of the Economic Coordination Committee chaired by Finance Minister Ishaq Dar.
The Civil Aviation Authority revealed to the members that GACA KSA has issued a notice for payment of $48 million to avoid suspension of operations including Hajj flights.
Over fifty thousand Hujjaj have already traveled to KSA and their repatriation operation will not commence until GACA payments are made, the Civil Aviation Authority warned.
Similarly, the division also disclosed that AerCap, one of PIA’s lessors impounded PIA’s B-777 aircraft on May 29, 2023, at Kuala Lumpur, Malaysia which was later released under court order after making overdue payment and pleading PIA receipts through IATA clearing House.
Willis Leasing, another lessor, has also filed a lawsuit for non-payment in a US court and in order to avoid any adverse decision, two A-320 aircraft engines leased by them are being removed and forced returned to them, according to sources who attended the meeting.
Meanwhile, Alliana insurance broker has issued a termination notice and if overdue payments are not made, insurance will not be available resulting in suspension of PIA operations entirely.
Furthermore, IATA last week issued a last warning for payment of its outstanding dues of $2.8 million by June 21, 2023, failure in compliance with the notice could have resulted in the suspension of PIA’s IATA membership and thus flight operations.
This payment has been made on June 23, 2023, with great difficulty however if the existing cash flow problem continues, this situation is likely to re-emerge in the near future.
The ECC had just approved to release of Rs. 4 billion against the demand of Rs. 22 billion pending claims on account of markup upto June 2023 which means PIA flight operations may be suspended in the coming days.
Prime Minister Shehbaz Sharif on Wednesday also constituted a high-level committee under the chair of Ishaq Dar to work out the restructuring, reformation, and revival of the PIA.
The committee would also comprise Railways and Aviation Minister Khawaja Saad Rafiq, Planning Minister Ahsan Iqbal, Commerce Minister Syed Naveed Qamar, Special Assistant to the PM Jahanzeb Khan and secretary aviation.
The body would deliberate on different options for the restructuring and revival of the PIA.
The aviation minister briefed the prime minister about the proposed route map and reformative measures for the uplift of the national flag carrier. The premier appreciated the efforts of the minister for the PIA’s revival.
He viewed that the PIA had the capacity to overcome the losses.
The meeting was told that the number of planes in the PIA fleet would have to be increased from 27 to 49, in order to steer the airline out of the crisis.
Prime Minister Shehbaz said the PIA had lost the Europe and US routes owing to irresponsible statements by the previous government, inflicting the loss of billions of rupees.
Ex aviation Minister sarwar destroy
Pia due hie wrong statement for PK
Pilots….he is totally unprofessional
Person….don’t know nothing for the aviation industry….appointed Minister..
Due to his statement PIA….all UK and Europe routes closed…for PK
PDM and handlers are destroying PIA for their own gains. Lack of merit (fake licensed pilots) by CAA destroyed reputation of PIA services.
“Ye aizaz hai husn-e-awargi ka, jahan be gaye daastaan chore aye”.
Wherever PIA goes, it leaves behind a story.
What can be expected of a corrupt and inefficient organization like PIA?
PIA is mini Pakistan.
PIA suffering economic issues but still the govrnmnt hands out free tickets to different high level officials and ministers for free. Obviously airline cannot survive like this.