Summary
- PIA has canceled multiple flights on account of unpaid fuel bills, causing disruption for passengers and highlighting their ongoing financial crisis.
- Pakistani State Oil suspended fuel supply to PIA, only providing fuel for prioritized flights that had been paid for.
- The prime minister suggests that privatizing PIA may improve its reliability and produce it as much as the standards of international carriers.
Pakistan International Airlines, commonly often known as PIA, has hit the highlight this week after canceling several domestic and international services on account of the lack to cover its fuel bills. The state-owned carrier has long been accused of poor management and burdening the Pakistani Government with debt.
A spokesperson for the carrier, Athar Awan, reported that between Tuesday, sixteenth, and Wednesday, seventeenth October, 48 international and domestic services were axed on account of the unavailability of fuel, with many delayed, including 11 international services to destinations comparable to Dubai, Abu Dhabi, Kuwait, Sharjah, and Muscat.
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Many years upon a long time of mismanagement by the carrier has crippled the Pakistani Government and, more recently, required a bailout from the International Monetary Fund (IMF) to avoid the country defaulting on its loans. Awan continued to elaborate on the problem directed to the carrier:
“The rationale for the disruption in fuel supply is non-payment of dues because PIA is facing a financial crisis and can’t pay the dues to Pakistan State Oil on time,”
Fuel for prioritized flights only
In line with Pakistani State Oil (PSO), the state-owned supplier suspended fuel for the carrier on account of unpaid dues and provided fuel just for flights prioritized by PIA, which received payment for just 26 return flights refueled by Wednesday. Passengers affected were moved to alternative services within the corresponding days. Nevertheless, the airline has continued encouraging passengers to examine their flight status or contact the airline’s customer care center or travel agent before traveling to the airport.
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Fuel suspensions at Karachi Jinnah International Airport (KHI) saw some flights delayed by up to 3 hours, and cancellations affected domestic passengers to Sukkur and Faisalabad. Islamabad also saw a spread of disruptions, including domestic flights to Gilgit, Quetta, and Multan.
Time to denationalise the airline
Prime Minister Anwaarul Haq Kakar has expressed his concerns with the present state of the airline’s books and encouraged ‘fast-tracking’ to denationalise the carrier. Kakar hoped that ought to the airline be sold; it might improve its reliability and produce it as much as the standards of neighboring international carriers.
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Despite rumors surfacing in September that the airline can be shut down or grounded, the carrier has stated that those claims had no merit and plans to proceed operations. PIA management has been making ‘ends meet,’ with revenue from its current operations to cover staff salaries and operating costs.
Earlier this yr, the Finance Ministry of Pakistan denied the airline’s appeal for a PKR 23 billion ($78 million) bailout. As an alternative, the airline was directed to secure industrial loans and develop a privatization plan.
: Yahoo