The Pakistan International Airline (PIA) is facing potential operational suspension by September 15 due to severe financial constraints, a senior official informed. The airline, which has reduced its operational planes from 23 to 16, is grappling with daily losses amounting to millions of rupees and halted spare parts supplies from Boeing and Airbus due to unpaid debts.
Further, several planes were temporarily held at Dammam and Dubai airports due to unpaid fuel costs, although they were later released following PIA’s assurance of payment. Despite these assurances, the International Air Transport Association only reinstated PIA’s services after receiving an emergency payment of $3.5 million.
A looming financial crisis has also resulted in delayed employee salaries and the grounding of several leased aircraft. A recent request for a Rs22.9 billion emergency bailout was denied by the Economic Coordination Committee, escalating the financial woes that saw the freezing of 13 PIA bank accounts last month over non-payment of fees. The national carrier is actively seeking government intervention to prevent the impending suspension of flight operations.
Read: Critical Financial Crisis Grips PIA: 15 Planes at Risk of Grounding