Pakistan International Airlines faced significant disruptions in its flight operations on October 17, canceling 24 domestic and international flights due to ongoing restrictions on fuel supply.
Out of the 24 canceled flights, 11 were international routes, and the remaining 13 were domestic. Another 12 flights were delayed due to fuel shortage after Pakistan State Oil suspended fuel supply to the airline over non-payment.
PIA also announced the cancelation of over two dozen flights, 16 international and eight domestic, for the following day. The affected international destinations included Dubai, Muscat, Sharjah, Abu Dhabi, and Kuwait. More flights are expected to face delays in coming days.
Pakistan State Oil (PSO) had ceased fuel supply to Pakistan International Airlines (PIA) at Multan, Sukkur, and Gilgit airports due to outstanding debts, further worsening the financial woes of the national airline. As a consequence, 14 flights were canceled on Monday.
A PIA spokesperson cited a limited daily fuel supply for their aircraft and operational issues as the primary reasons behind the flight cancellations. Some departures were rescheduled due to these constraints.
Despite the cancellations, PIA assured passengers that they were accommodated on alternative flights and urged passengers to contact the airline’s call center, PIA offices, or their travel agents before heading to the airport to stay updated on the flight disruptions caused by the fuel shortage.
The airline also provided a list of the canceled flights scheduled for Wednesday, impacting multiple routes, including flights between Multan and Karachi, Islamabad and Sharjah, and Islamabad and Dubai, among others.
PIA seeking loans
Pakistan International Airlines is reportedly seeking additional borrowing of over Rs7 billion from banks in an attempt to overcome the severe financial crisis it is facing. The airline has already sent a formal request to the Aviation Division, highlighting its urgent need for this loan, Express Tribune reported.
The letter from PIA noted that the government of Pakistan’s guarantee allows the airline to secure a loan of up to Rs7.5 billion. However, despite these requests, no bank showed interest in providing the loan.
The dire financial situation led to fuel supply interruptions in Jeddah and Dubai, with the state-owned oil marketing company PSO refusing to provide fuel to the airline. Additionally, the possibility of the International Air Transport Association (IATA) suspending PIA’s membership and notices from the Federal Board of Revenue (FBR) added to the collapsing situation.
In the letter sent by the General Manager Funds Management to the Deputy Director Division, there is a plea for immediate intervention from the Ministry of Finance. PIA urgently called for the Ministry to instruct banks to provide a loan of Rs7.5 billion under the government’s guarantee to address the pressing financial challenges.
Privatization of PIA
Caretaker Prime Minister Anwaar-ul-Haq Kakar on October 11, issued a directive to accelerate the privatization process of Pakistan International Airlines (PIA) and other state-owned enterprises facing financial challenges.
Prime Minister Kakar stressed the need for transparency and expediency in the privatization of the national airline to safeguard the national exchequer from further losses. He pointed out that the financial deficits of these institutions could no longer be sustained through public taxes.
The Prime Minister recognized that reforms within the aviation sector would lead to improved travel services for the public, benefiting both passengers and the aviation industry.
During the high-level meeting, participants were also briefed on the financial status of PIA and the progress made in the privatization process. It was reported that all impediments in the privatization of PIA had been successfully addressed, indicating a positive step towards the airline’s privatization.
