PIA multiple domestic and international flights cancelled as it reaches default

PIA multiple domestic and international flights cancelled as it reaches default

On Thursday, Pakistan International Airlines (PIA) took a significant step in response to its dire financial situation by canceling a multitude of both domestic and international flights. Numerous domestic flights linking Karachi with various destinations were axed due to the national flag carrier's inability to settle its outstanding fuel supply dues with Pakistan State Oil (PSO).

Among the unfortunate cancellations were routes like Karachi-Turbat, Karachi-Gwadar, Karachi-Quetta, Karachi-Sukkur, and Karachi-Multan. These developments underscore the profound challenges PIA currently faces.

PIA's current financial crisis has reached a critical juncture, casting doubts on its capacity to sustain air operations in the face of mounting debts. It was only the day before these cancellations that Pakistan International Airlines managed to resolve a significant hurdle.

The bank accounts of PIA, previously frozen due to disputes with the Federal Board of Revenue (FBR) concerning unpaid dues, were finally unblocked. The national flag carrier offered written assurances to the tax collection authority, pledging to clear all outstanding dues. As per the agreement, PIA is committed to paying Rs2.5 billion this month, a crucial step toward alleviating its financial woes.

The cancellation of flights and the broader financial turmoil within PIA underscore the gravity of the situation. The airline's struggle to pay for essential services like fuel highlights the precarious nature of its operations.

With the recent resolution of issues with the FBR and a commitment to settling dues, there is hope that PIA can begin the challenging journey of restoring its financial stability. However, the path ahead remains uncertain, and the airline must address its financial woes comprehensively to secure its future in the aviation industry.