Pakistan International Airlines (PIA) has grounded almost half its fleet amid an ongoing financial crisis.
14 out of 31 PIA aircraft have now been grounded as the national flag carrier faces hundreds of billions of rupees in arrears.
As a result, Boeing and Airbus are likely stop supplying spare parts to the airline by the middle of September, Pakistan’s aviation ministry said.
PIA last week expressed its inability to pay its creditors, aircraft lessor, fuel suppliers, airport operators and IATA, according to Firstpost.
Pakistan’s former prime minister, Shehbaz Sharif, previously revealed his government’s plans to privatise the airline in a bid to save it from its current financial crisis.
Successive governments have been handing out billions of rupees from their budgets to keep the loss-making public entity afloat.
Abdullah Khan, a spokesperson for Pakistan International Airlines, said today: “Our interest support is frozen by the government. We have arranged some funding from the banks but [that] will take time to materialise”.
Arab News reports that an anonymous PIA “official” said: “We fear the suspension of 30 domestic flights if funds are not disbursed promptly, and there is a looming threat of more aircraft being grounded.”
“PIA urgently requires 20 billion rupees to meet pressing financial obligations, encompassing fuel payments, federal excise duty and lease payments for its aircraft.”
As the crisis deepens, there are also reports that the carrier is failing to pay its employees’ salaries.
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