Cash-strapped Pakistan International Airlines (PIA) has grounded several aircraft as it failed to secure funds to maintain its operations for the next few months, Dawn has reported.
According to the report, the airline has decided to put up for sale non-core assets to keep the airline afloat. “The Ministry of Aviation issued a stern warning last week, telling the federal government that PIA currently grapples with a severe cash flow crisis, leading to arrears with creditors, aircraft lessors, fuel suppliers, insurers, international and domestic airport operators, and even the International Air Transport Association (IATA).”
As a result, the Pak flag carrier was forced to ground five of its 13 leased aircraft, with the possibility of four more facing a similar fate, the ministry said.
Meanwhile, Boeing and Airbus will discontinue the supply of spare parts by mid-September. Considering these challenges, the ministry has requested an immediate cash injection of Rs 23 billion, and the suspension of duties, taxes and service charges to domestic agencies. However, this request comes without the presentation of a concrete and viable business plan, the report said.
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