KARACHI: After receiving Rs220 million for the supply of fuel from Pakistan International Airlines (PIA) three days back, Pakistan State Oil (PSO) stopped further supply on Sunday, forcing the national flag carrier to bring its flight operation to a standstill.
According to a PIA spokesperson, only four of the 52 international and 29 domestic flights scheduled for Sunday could be operated due to shortage of fuel.
“We had paid over Rs220 million to the PSO for the weekend and the scheduled evening flights will operate as soon as today’s credit line is available while alternative connections are being provided to passengers on the affected flights,” he added. However, PSO said it had provided fuel to over 64 flights since Friday night.
“On Friday evening, PIA paid Rs220 million for fuel for Saturday and Sunday,” it said in a statement, adding a list of 39 flights for fuel supply was also provided by the airline. Due to cancellation and delay of flights, hundreds of passengers were stranded in different cities. Moreover, private airliners increased their fares taking undue advantage of the situation.
A source said an stage was being prepared for altogether shutting down of the PIA as its financial situation was leading to such a low that there would be no one interested even to afford buying it.
PIA has liabilities of Rs743 billion (around $2.5 billion), exceeding its total assets by five times.
The national flag carrier has written to the Aviation Division, requesting an immediate loan of over Rs7 billion from banks. The letter also noted that the government of Pakistan’s guarantee includes the option for the airline to secure a loan of Rs7.5 billion.
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