Pakistan International Airlines (PIA) has sounded the alarm, cautioningthat both Boeing and Airbus may halt the provision of spare aircraft partsby mid-September due to severe financial woes plaguing the nationalcarrier.
PIA conveyed its dire predicament to the Economic Coordination Committee(ECC), seeking an emergency bailout. The airline’s financial hardship hasleft it unable to meet its obligations to creditors, aircraft lessors, fuelsuppliers, airport operators, the International Air Transport Association(IATA), and other stakeholders.
In response to this crisis, PIA has already been forced to ground five outof its fleet of 13 leased aircraft, with an additional four aircraftteetering on the brink of grounding in the coming week.
The gravity of the situation is underlined by PIA’s assertion that thecontinued operation of the state-run airline is imperative not only for itsimmediate survival but also to ascertain an equitable valuation of itsshares in preparation for privatization.
Read Top Stories
However, in a recent development, the ECC meeting convened on Wednesdayrejected PIA’s plea for a bailout package amounting to Rs22.9 billion andthe deferment of Rs1.3 billion per month to the Federal Bureau of Revenue(FBR), as well as the request for loans and interest deferrals until thefinalization of the restructuring plan.
During the meeting, the Ministry of Aviation presented a comprehensivesummary titled “Financial Support for PIACL & its Restructuring,” with theSecretary of Aviation delivering an extensive briefing to elucidate thefinancial challenges and liabilities confronting PIA, emphasizing thecritical need for a comprehensive organizational restructuring to navigatethese turbulent financial waters.
