The Saudia Arabian General Authority of Civil Aviation has asked the Pakistan International Airline to pay 48 million outstanding dues to avoid suspension of air travel, including Hajj Flights. The GACA also warned that the repatriation of fifty thousand Hajj Pilgrims will not commence until the payments are made.
The People familiar with the development said that the revelations were made by Pakistan’s Finance Minister Ishaq Dar during the economic coordination meeting chaired this week. The highly mismanaged Pakistan State Airlines may even close down as the ECC failed to release 22 billion PKR (Pakistani Rupee) billion pending claims on account markup to June 2023, releasing PKR four billion.
It was revealed that Aer Cap, a lessor of the Pakistani International Airline (PIA) impounded its B-777 aircraft last month at Kuala Lumpur, the capital of Malaysia. It was released after the Pakistani government made the overdue payment and pleaded the PIA receipts through the International Air Transport Association (IATA) clearing house.
On June 28, 2023, Shahbaz Sharif, the prime minister of Pakistan, said that a high-level committee meeting chaired by the finance minister will work out the restructuring, reformation and revival of the PIA. Aviation Minister Khwaja Saad Rafiq, planning minister Ahsan Iqbal, commerce minister Syed Naveed Qamar a special assistant to the Prime Minister and the aviation secretary are the other members of the committee.
The PIA is facing a lawsuit in the US from Wills Leasing over non-payment. To avoid any further adverse action, the PIA is removing and returning the two A-320 aircraft engines leased from them. The PIA insurance broker Alliana also issued a termination notice, demanded overdue payments, and announced that if the insurance stops, so will the flight operations.
Pakistan International Airlines’ membership in the IATA was also in peril as it did not pay any outstanding dues to the tune of over 2.8 million USD. The last date for the payment was June 21, 2023, and the payment was made on June 23, 2023.
In spite of these hardships, the PIA has been tasked to increase its fleet from 27 to 49 aircraft, which the government hopes will also steer the airline out of the crisis.
The PIA is not only facing economic crunches but has a bad reputation for its services. The civil aviation authority of the Kingdom of Saudi Arabia has warned PIA several times in the past on the grounds of flight delays and poor services.
A similar situation occurred in 2019, the PIA was not allowed to land in Saudi Arabia as it failed to clear dues and crossed the deadline. This caused massive problems for the Hajj Pilgrims. The then Federal Minister for Aviation, Ghulam Sarwar Khan, blamed the PIA near default list on the previous government.
The closure of the PIA Operations at any airport in Saudi Arabia will adversely affect the Hajj Operation and will also impact the prestige of the Pakistani government. The PIA has been criticised for its inefficiencies, including overstaffing and a lack of modernisation in its operations. The airline has also been accused of corruption, further contributing to its financial troubles.
Not only in Saudi Arabia but the PIA was also suspended in the European Union. The European Union Aviation Safety Agency suspended the authorisation of the PIA due to its concerns over the safety of the airlines’ operations. It has been noticed that the presence of political interference has led to issues like the appointment of unqualified staff and the misuse of the airline’s resources.
Another festering wound in the service of the PIA is that their pilots were not paid their salaries, which has led to a strike and several protests. The issue of time punctuality of the PIA is a matter of concern. The frequent delays had even led to a scene where its flights were shifted from Jeddah’s north terminal to Hajj as a penalty.
This is a major blow to its reputation. Additionally, the market share was inconvenient for passengers, particularly those travelling to Mecca for Hajj and the Ummah Pilgrims.
The Islamic Republic of Pakistan is facing deadly turbulence in the economic arena. The value of their currency is very poor, the foreign exchange reserves are empty, and the political leadership is highly occupied and busy managing the country, which is heading towards ruins. The nation is in complete tatters.
