Tag: national carrier

  • PIA struggles to stay afloat as fuel shortage forces cancellation of 349 flights  

    PIA struggles to stay afloat as fuel shortage forces cancellation of 349 flights  

    Over the past two weeks, Pakistan International Airlines (PIA) has been compelled to cancel 349 flights due to a severe fuel shortage, underscoring the challenges faced by the financially struggling national carrier.

    According to a spokesperson, these flight cancellations, which began on October 14, have affected both domestic and international routes, causing significant inconvenience to passengers. 

    PIA has issued a statement confirming that daily flight rescheduling is ongoing, but without specifying the expected duration of this crisis. Flight schedules are being adjusted based on fuel availability, as mentioned in the statement. 

    This situation has arisen from an ongoing financial dispute between PIA and the Pakistan State Oil Company (PSO). PIA alleges that PSO has suspended its credit line for fuel and is now requiring daily advance payments before supplying the necessary fuel. 

    PIA has emphasised its efforts to manage its funds and has indicated that the return to regular flight schedules depends on the availability of financial resources. 

    To keep affected travellers informed, PIA has outlined its priority destinations once flight operations resume. Canada, Turkey, China, Malaysia, and Saudi Arabia are expected to be among the first countries to be reconnected. 

    However, PIA’s flights to Europe and the UK have remained suspended since 2020 following the revocation of the national carrier’s authorization by the European Union’s Aviation Safety Agency due to the pilot licence scandal. 

  • PIA receives assurances of govt support during privatisation 

    PIA receives assurances of govt support during privatisation 

    Following a dire fuel crisis that significantly impacted Pakistan International Airlines (PIA) flight operations, the interim Prime Minister, Anwaar-ul-Haq Kakar, took decisive action on Monday.  

    He instructed the relevant authorities to expedite the privatisation process of the nation’s flag carrier. 

    Over recent weeks, PIA’s flight schedule has faced severe disruption, with numerous cancellations attributed to fuel shortages, exacerbated by the airline’s precarious financial situation.  

    Notably, on the preceding day, Pakistan State Oil (PSO) curtailed its fuel supply to PIA, resulting in the cancellation of 26 flights originating from various cities, including Karachi, Lahore, Islamabad, Quetta, Bahawalpur, Multan, Gwadar, and others. 

    Chairing a comprehensive review meeting concerning PIA’s financial challenges, Prime Minister Kakar highlighted the urgency of finalising the privatisation process within the stipulated timeframe. He further insisted on the submission of regular compliance reports on this matter. 

    The Prime Minister assured that the government remains committed to supporting PIA until the privatisation process is successfully completed. He said that state-owned enterprises (SOEs) facing financial losses will be privatised to safeguard the national treasury. 

    During this meeting, the Prime Minister received a detailed briefing on PIA’s current financial status. 

    In August 2023, the Cabinet Committee on Privatisation (CCoP) approved the inclusion of PIA in the active list of entities slated for privatisation following parliamentary amendments.  

    Additionally, the CCoP consented to engage a financial advisor for the transaction concerning PIA’s Roosevelt Hotel in New York. 

    According to credible sources, a significant transformation occurred when PIA transitioned from a corporation to a public limited company registered under the Companies Ordinance, 1984.  

    This transition commenced in 2016 through a joint parliamentary session that resulted in the enactment of the PIAC (Conversion) Act, 2016.  

    This legislation gave rise to Pakistan International Airlines Corporation Limited (PIACL), a public limited company.  

    Notably, a substantial amendment was introduced, known as the ‘Explanation’ in Sub-section 4 of Section 4, which restricted the federal government from relinquishing management control in the airline business of PIACL while maintaining a minimum ownership stake of 51% in the entity. 

  • Financial turmoil threatens PIA: Flight cancellations surge, salaries delayed

    Financial turmoil threatens PIA: Flight cancellations surge, salaries delayed

    The Pakistan International Airline (PIA) faces an imminent crisis, as a high-ranking official from the national carrier has issued a warning that flight operations may be suspended by September 15th if emergency funding is not promptly secured. This concerning development, as reported by Geo News, underscores the severity of the situation.

    In a statement to Geo News on Wednesday, a senior director at PIA highlighted that the operational fleet has dwindled from 23 to just 16 aircraft, resulting in the unfortunate cancellation of numerous flights. The dire financial straits of the airline have led to significant disruptions.

    Furthermore, the official revealed that renowned aircraft manufacturers, Boeing and Airbus, have halted the supply of crucial spare parts to PIA due to outstanding payments. This disruption, coupled with reduced flight operations, has incurred substantial daily losses running into millions of rupees for the national airline.

    In a distressing incident, one PIA aircraft was temporarily detained at Dammam airport, while four others faced a similar situation at Dubai airport, all due to unpaid fuel bills. These aircraft were eventually permitted to depart based on written assurances from PIA, with the International Air Transport Association (IATA) reinstating PIA services following an emergency payment of $3.5 million.

    The official’s somber warning emphasized that without an injection of Rs23 billion in emergency funds, flight operations may face suspension by September 15th.

    In response to this critical situation, a PIA spokesperson, in a statement, assured that exhaustive efforts were underway to avert the suspension of flight operations.

    Earlier reports had indicated that PIA’s financial challenges had severely impacted its flight schedule, resulting in the cancellation of both domestic and international flights. The airline had urgently requested government intervention to provide the necessary funds, and there were also reports of unpaid salaries to PIA employees.

    This financial turmoil for PIA had previously prompted the grounding of five leased aircraft, with the possibility of grounding four more due to ongoing financial constraints. The airline had sought an emergency bailout of Rs22.9 billion, which was unfortunately rejected by the Economic Coordination Committee (ECC). Additionally, the ECC declined requests for the deferment of monthly payments to the Federal Board of Revenue (FBR) and the Civil Aviation Authority (CAA).

    In another setback, last month, the FBR had frozen 13 PIA bank accounts due to non-payment of Rs8 billion in Federal Excise Duty (FED), further compounding the airline’s financial woes.

  • PIA offers 14% ‘Azadi Offer Discount’ on all domestic flights on Independence Day

    PIA offers 14% ‘Azadi Offer Discount’ on all domestic flights on Independence Day

    On the occasion of the 76th Independence Day, Pakistan International Airlines (PIA) has extended a generous gesture to its passengers by announcing a significant discount.

    According to ARY News, the national carrier has declared a 14 per cent price reduction on all domestic flights, bringing forth a unique opportunity for citizens to travel within the country at a more affordable cost.

    In an official statement released on Thursday via their Twitter handle, the PIA spokesperson elaborated on the offer, stating that travellers would be able to avail themselves of this limited-time promotion on August 14.

    This special Independence Day discount is being offered as a token of appreciation to fellow compatriots for their unwavering support and patriotism.

    “The discount is a gift from the national carrier to the compatriots for Independence Day,” the spokesperson affirmed, highlighting the airline’s dedication to celebrating the nation’s sovereignty.

    As the nation prepares to commemorate the 76th Independence Day, citizens are set to rally around the ideals of the Pakistan Movement. This annual celebration, which falls on August 14, marks a pivotal moment in Pakistan’s history and provides an occasion for citizens to renew their commitment to building a robust Islamic welfare state.

    With the PIA’s gracious discount offer, many citizens are expected to capitalise on the opportunity to explore the diverse landscapes and cultures that Pakistan has to offer, fostering a sense of unity and connectivity as the nation celebrates its journey towards progress and development.

  • Foreign experts to arrive in Pakistan to revive PIA

    A delegation of foreign experts will arrive in Pakistan on Monday (today) to devise a five-year corporate business plan for cash-strapped Pakistan International Airline (PIA).

    According to reports, the four-member team is arriving in Pakistan on the invitation of Dr Ishat Hussain, advisor to Prime Minister (PM) Imran Khan on institutional reforms. They will stay in the country for 12 days to develop the plan for the national carrier.

    The team will review the business model and also meet government officials at the finance ministry as well as the airline’s chief executive officer (CEO), Air Marshal Arshad Malik.

    They will devise a business plan for the airline to make it profitable and sustainable. “We will be following the government’s directives on restructuring and reforms in the airline,” reports quoted them as saying.

    It is pertinent to note that Dr Hussain is supervising the reforms in PIA. Back in November 2019, the airline had sought the services of a reputed international firm with extensive aviation consulting experience to prepare a five-year corporate business plan through a tender.

    The objective was to revive PIA as a leading international airline, and enable it to play an important role in the country’s struggling economy.