PIA set to operate more flights after PSO extends credit line

KARACHI: Pakistan International Airline (PIA) Monday said that the national carrier would be able to operate more flights following a credit line extension by the Pakistan State Oil (PSO).

The state-owned oil company last week provided Rs500 million in credit relief to the national airline as it faces a severe financial crunch with hundreds of flights being cancelled slashing the airline’s daily revenue by up to 70%.

“The PIA’s disrupted operations are heading toward restoration after an improved fuel supply,” the airline said. According to the national carrier, its flight operations are expected to come back to normal routine in the next few days with more improvement in the fuel supply.

PIA had been paying Rs100 million to PSO for the daily purchase of fuel and owed Rs26.8 billion ($97.37 million) to the state-owned oil company. A meeting was held on October 16 between senior officials from both state-owned organisations to determine the course of action.