Securing Rs18 Billion Loans | No Threat Of Imminent Closure: PIA spokesperson

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RAWALPINDI: The Pakistan International Airlines (PIA) obtained Rs18 billions of funds through bank loans and averted a suspension of flight operations.

PIA spokesperson, Abdullah Hafeez Khan has refuted the reports of the imminent closure of its operation, saying the national carrier was also clearing all national and international payments.

Abdullah Hafeez Khan, in a statement, also said that the national flag carrier is making the most necessary domestic and international payments. He added the PIA has also paid all of its staff’s salaries.

The spokesman further said that the national airline is established on a strong foundation and has full capacity to cope with difficult situations. “The PIA has a strong network worldwide. The PIA has an adequate number of aircraft for international and domestic flights through which air operations are ongoing.”

Earlier today, it was reported that PIA, which was facing serious cash flow problems, cancelled several domestic and international flights.

The Ministry of Aviation, while seeking a cash injection of Rs23 billion, has also informed the government that Boeing and Airbus, two of the leading commercial jet manufacturers  were on the verge of discontinuing spare parts’ supply by mid-September, according to reports.

On September 7, the PIA had said it grounded five out of its 13 leased aircraft with further prospect of grounding four additional planes due to the prevailing financial crunch.

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 FED and Rs0.7 billion per month which PIA pays to the Civil Aviation Authority (CAA) against embarking charges.

The airline had also warned that Boeing and Airbus might suspend the supply of spare parts by mid-September.

Last month, the Federal Board of Revenue of Pakistan (FBR) froze 13 PIA bank accounts due to non-payment of Rs8 billion in FED.

The Ministry of Aviation, while seeking a cash injection of Rs23 billion, has also informed the government that Boeing and Airbus — two of the leading commercial jet manufacturers — were on the verge of discontinuing spare parts’ supply by mid-September, according to reports.

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