Boeing and Airbus, two of the leading airplane manufacturers, may potentially stop spare parts supply to Pakistan International Airlines (PIA) by mid-September, as the national airline grapples with financial issues.
PIA sent a summary to the Economic Coordination Committee (ECC) seeking a bailout package on an urgent basis.
It noted that it is struggling to pay its fuel suppliers, airport operators, aircraft lessors, creditors, the International Air Transport Association (IATA), and many others due to cash flow problems.
The airline has also grounded 5 out of 13 leased planes, with 4 more expected to be grounded by this week due to the same reasons.
In a meeting held on Wednesday, ECC refused PIA’s request to grant Rs. 22.9 billion and defer its Rs. 1.3 billion per month that it is paying to FBR, along with loans and markup amount until the restructuring plan is finalized.
Following comprehensive discussion, it has been decided to form a separate committee to review PIA’s restructuring program. At the same time, the State Bank of Pakistan (SBP) and the Finance Division will financially support PIA to overcome its issues.
