- PIA faces an imminent risk of suspending flight operations due to severe cash flow problems.
- Aircraft manufacturers Boeing and Airbus have suspended spare parts supplies.
- PIA’s financial crisis has led to the detention of planes at international airports over fuel payment issues.
n a recent interview, a senior official from Pakistan International Airlines (PIA) disclosed that the airline is perilously close to suspending flight operations due to severe cash flow problems. The official reported a reduction in the operational fleet, with the number of active planes dwindling from 23 to a mere 16, leading to the cancellation of numerous flights.
One of the critical issues plaguing PIA is the suspension of spare parts supplies by aircraft manufacturers Boeing and Airbus due to non-payment. This disruption in the supply chain has left the national airline grappling with maintenance challenges and substantial daily losses incurred from limited flight operations.
Adding to the airline’s woes, a PIA plane faced detention at Dammam airport, and four others were held at Dubai airport due to non-payment for fuel. These aircraft were eventually allowed to depart upon providing written assurances from PIA. Additionally, the International Air Transport Association (IATA) took action to restore PIA services after the airline made an emergency payment of $3.5 million.
The situation has become increasingly dire, with a stark warning that flight operations could face suspension by September 15 unless immediate emergency funds totaling Rs23 billion are secured.
In response to these challenges, a PIA spokesperson issued a statement, asserting that the airline is making concerted efforts to avert the suspension of flight operations.
This crisis follows a pattern of recent disruptions, where PIA has experienced the cancellation of both domestic and international flights due to a severe shortage of funds.
Furthermore, it is noteworthy that last month, the Federal Board of Revenue (FBR) froze 13 of PIA’s bank accounts due to outstanding non-payment of Rs8 billion in Federal Excise Duty (FED).
Pakistan International Airlines is confronting an existential financial crisis that jeopardizes its flight operations. The airline’s challenges include reduced operational aircraft, halted spare parts supplies, fuel payment issues, and an urgent need for emergency funds to stave off a potential suspension of services. These difficulties underscore the urgency of addressing PIA’s financial woes to ensure the continuity of this vital national carrier.