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Tuesday October 08, 2024

PIA flight operations disrupted due to fuel payment issue

National carrier's flight operations have been "partially restored" after 26 flights were cancelled earlier in the day

By Afzal Nadeem Dogar & Tariq Moin Siddiqui
October 22, 2023
Crew members disembark from a Pakistan International Airways (PIA) flight at Kabul Airport, Afghanistan, September 13, 2021. — AFP
Crew members disembark from a Pakistan International Airways (PIA) flight at Kabul Airport, Afghanistan, September 13, 2021. — AFP

KARACHI: More than two dozen flights have been cancelled as flight operations of the Pakistan International Airlines (PIA) flight operations suffer major hindrances due to unavailability of fuel.

Sources said that 26 flights were cancelled — after the Pakistan State Oil (PSO) slashed its fuel supply to the PIA — from various cities including Karachi, Lahore, Islamabad, Quetta, Peshawar, Bahawalpur, Multan and Gwadar.

Meanwhile, commenting on the issue PIA spokesperson while reassuring that affected passengers are being provided with alternate flights, said that the national carrier's administration is looking into the matter and expects the fuel supply to be restored today once credit lines are available.

As many as 18 flights were cancelled from Karachi, of which three were Islamabad-bound, whereas two Karachi-bound flights were also cancelled from Lahore and the federal capital, respectively.

Meanwhile, only three flights will take off from Karachi today as per the fuel adjustment plan of the PIA.

Flight operations "partially" restored

The national carrier's flight operations have been partially restored following the administration's efforts, confirmed a PIA spokesperson later in the evening.

Jeddah-bound PIA flights took off from Karachi, Islamabad, Lahore and Multan airports, whereas another Riyadh-bound flight took off from the federal capital.

PIA's financial woes

The national carrier has been facing dire financial circumstances as the Federal Bureau of Revenue (FBR) froze all of its bank accounts for non-payment of taxes back in July earlier this year following which the airline was unable to cater to clear its dues owed to the PSO.

In September, the PIA had asked for an emergency bailout of Rs22.9 billion which was rejected by the Economic Coordination Committee (ECC).

The ECC also rejected the request for deferment of the payments of Rs1.3 billion per month, which PIA pays to FBR against Federal excise duty (FED), and Rs0.7 billion per month which PIA pays to the Civil Aviation Authority (CAA) against embarking charges.

Earlier this month, PIA flight PK790 was stopped in Canada on ground handling and fuel company complaints.

The plane however was released after dues worth $200,000 were cleared by the airline.