Pakistan International Airlines (PIA) is on the verge of collapse as a top airline official has warned that flight operations are feared to be suspended by September 15 if the emergency funds are not provided.
Speaking to a local news channel on Wednesday, a senior director of the national flag carrier said that the number of operational planes had been reduced to 16 from 23 which led to the cancellation of several flights, and hence causing more problems for the people.
- The number of operational planes reduced to 16 from 23.
- Boeing and Airbus suspended spare parts supplies to the Pakistan International Airline.
- PIA planes have been stopped at the Gulf airports over fuel non-payment.
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Financial Turbulence
They explain that two aviation giants, Boeing and Airbus, have taken a rather drastic measure in response to Pakistan International Airlines’s financial woes.
Both companies have decided to halt the supply of spare parts to Pakistan International Airlines, a move prompted by the airline’s persistent failure to meet its financial obligations and make timely payments.
Now, picture the consequences of this decision: Pakistan International Airlines, the national airline, is struggling to maintain and service its fleet of aircraft.
Without access to essential spare parts, they’re facing a major challenge in keeping their planes in proper working order.
This setback has led to a significant reduction in their flight operations, effectively grounding several of their aircraft.
No Money For Fuel
But here’s where it gets really tough for Pakistan International Airlines. Due to this limited flight capacity, they’re hemorrhaging money every day.
We’re talking about losses amounting to millions of rupees on a daily basis.
These financial blows are not just hurting the airline’s ability to provide seamless travel experiences for its passengers; they’re also pushing PIA to the brink of sustainability.
This situation sends a clear and urgent message about the severity of Pakistan International Airline’s financial crisis.
The suspension of spare parts from Boeing and Airbus isn’t just a bureaucratic hiccup; it’s a stark reminder that PIA needs to get its financial house in order. Failing to do so could have lasting and potentially devastating consequences for the airline’s ability to compete effectively in the global aviation arena.
The official also revealed that one Pakistan International Airlines plane was stopped at Dammam airport while another four were at Dubai airport over failure to pay for fuel.
The planes that were stopped were allowed to leave on written assurance of the PIA, the official told the media, also adding that the International Air Transport Association (IATA) had restored PIA services after an emergency payment of $3.5 million was made.
The official had warned that flight operations may be suspended by September 15 if Rs23 billion were not provided in emergency funds to the airline.
Struggles to Stay Afloat
Meanwhile, a Pakistan International Airlines spokesperson said in a statement to the media that all-out efforts were being made to save the flight operations from suspension at any cost.
A day earlier, sources told the local news that the PIA flight operations were severely affected due to a shortage of funds with a number of domestic and international flights being canceled due to these issues.
The insiders said the national flag carrier had requested the government for immediate provision of funds, but didn’t get any sufficient response.
Moreover, the sources told the news that the PIA employees had also not been paid their salaries as well.
PIA’s Financial Woes
On September 7, the PIA said that they had grounded five out of its 13 leased aircraft with further prospect of grounding four additional planes due to the prevailing financial issues.
The PIA had asked for an emergency bailout of Rs22.9 billion which was rejected by the Economic Coordination Committee (ECC).
The ECC also rejected the request of PIA for deferment of the payments of Rs1.3 billion per month, which PIA pays to FBR against FED, and Rs0.7 billion per month which PIA pays to the Civil Aviation Authority (CAA) against embarking charges.
The airline had also warned them that Boeing and Airbus might suspend the supply of spare parts by mid-September to the airline.
Last month, the FBR froze 13 PIA bank accounts due to non-payment of Rs8 billion in FED, which are still frozen.
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