PIA’s Flights Disrupted as Fuel Supply Halted Over Unpaid Dues

PIA's Flights Disrupted as Fuel Supply Halted Over Unpaid Dues

VoM News Desk | October 23, 2023 | 01:03 PM IST | Breaking News, Pakistan News, Travel | Follow on Google News

PIA’s Flights Disrupted as Fuel Supply Halted Over Unpaid Dues

PIA’s Flights Disrupted as Fuel Supply Halted Over Unpaid Dues

Pakistan International Airline (PIA) is facing significant disruptions as Pakistan State Oil (PSO) has halted fuel supply to the national carrier due to unpaid dues. According to a report by Geo News, PIA had to cancel 26 flights from various cities in Pakistan, including Karachi, Lahore, Islamabad, Quetta, Bahawalpur, Multan, and Gwadar. However, the affected passengers were provided with alternative flight options.

Fuel Adjustment Plan and Payments

Under the fuel adjustment plan, only three flights were scheduled to take off from Karachi on the day of the report. On October 21, PIA had paid PKR 220 million (approximately $789,000 USD) to PSO for a two-day fuel supply. According to ARY News, PIA disbursed this payment to PSO for fuel supply on October 21 and 22. A PIA spokesperson stated that the airline had paid a total of Rs. 500 million to PSO for fuel, and they are making daily payments. The airline is acquiring fuel for its profitable routes, including those to Saudi Arabia, Canada, China, Kuala Lumpur, and others.

Previous Disruptions and Financial Challenges

Earlier, PIA had faced turbulence as its domestic flight operations were disrupted due to non-payment of dues, leading to a complete halt in the supply of aviation turbine fuel to the carrier. On October 17, this disruption had resulted in the cancellation of 14 domestic flights and significant delays in four others.

PIA had also requested an emergency bailout of PKR 22.9 billion, which was rejected by the Economic Coordination Committee (ECC). The ECC declined a request for deferment of payments to the Federal Board of Revenue (FBR) and warned of potential supply disruptions for spare parts by Boeing and Airbus.

In July, FBR had frozen PIA’s accounts due to unpaid taxes, and in the past, the airline had faced financial challenges related to tax defaults. However, it had subsequently assured authorities of early tax clearance.

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VoM News Desk

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