Pakistan state airline grounds dozens of flights over fuel bills

Pakistan state airline grounds dozens of flights over fuel bills
Pakistan state airline grounds dozens of flights over fuel bills

Hello and welcome to the details of Pakistan state airline grounds dozens of flights over fuel bills and now with the details

Nevin Al Sukari - Sana'a - Pakistan’s embattled national airline carrier this week cancelled dozens of domestic and international flights because it could not afford to pay its fuel bills, officials said yesterday. ― AFP pic

ISLAMABAD, Oct 19 — Pakistan’s embattled national airline carrier this week cancelled dozens of domestic and international flights because it could not afford to pay its fuel bills, officials said yesterday.

State-run Pakistan International Airlines (PIA), long accused of being bloated and poorly run, has found funds drying up as the government struggles with a balance of payments crisis caused by crippling debt repayments.

Athar Awan, a deputy spokesman for PIA, said 48 international and domestic flights were cancelled on Tuesday and Wednesday “due to non-availability of fuel”.

“The reason for the disruption in fuel supply is non-payment of dues because PIA is facing a financial crisis and cannot pay the dues to Pakistan State Oil on time,” a PIA official speaking on condition of anonymity told AFP.

Advertisement

Decades of mismanagement and instability have hobbled Pakistan’s economy, and this year Islamabad was forced into yet another bailout from the International Monetary Fund (IMF) to avert default.

The interim government has said it will sell off the airline as part of a wider privatisation plan for state-run companies.

“The process of privatisation for the national airline should be made more transparent and expedited to prevent further financial losses to the national exchequer,” caretaker Prime Minister Anwaar-ul-Haq Kakar said in a statement last week.

Advertisement

A senior official at Pakistan State Oil (PSO) said the state-owned fuel supplier was “providing fuel for only flights that PIA has prioritised”. He, too, was speaking on condition of anonymity.

PIA had agreed this week to pay the oil firm 100 million Pakistani rupees (around RM1.7 million) every day to cover its dues, the PSO official said.

“On Wednesday PSO received a payment of 150 million rupees in return 26 flights were refuelled”, the official added.

In a statement, the airline said it expected normal service to resume from Thursday, after it paid for fuel “from its own resources”.

The airline did not provide further details.

Bloomberg has previously reported that PIA had liabilities of 743 billion rupees, exceeding its total assets by five times.

PIA came into being in 1955 when the government nationalised a loss-making commercial airline, and enjoyed rapid growth until the 1990s.

The airline’s reputation was also battered by a series of strikes, hijackings and accidents — including the crash of an Airbus in Karachi in May 2020 that killed 97 passengers and crew. — AFP

These were the details of the news Pakistan state airline grounds dozens of flights over fuel bills for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Malay Mail and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

PREV Armenia freezes participation in Russia-led security bloc
NEXT Putin says 95pc of Russia’s nuclear forces have been modernised

Author Information

I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community. Address: 2077 Sharon Lane Mishawaka, IN 46544, USA Phone: (+1) 574-255-1083 Email: [email protected]