ISLAMABAD: Pakistan International Airlines (PIA) has resorted to ground several aircraft as it struggles to secure funds to maintain its operations for the next few months, during which time its core functions and non-core assets are expected to be put up for sale.
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).
Consequently, the national flag carrier has been compelled to ground five of its 13 leased aircraft, with the possibility of four more facing a similar fate, the ministry said.
Adding to the mounting concerns, the Ministry of Aviation disclosed that Boeing and Airbus are on the verge of discontinuing the supply of spare parts by mid-September.
Considering these challenges, the ministry has requested an immediate cash injection of Rs23 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.
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