No fuel, no fly: PIA struggles to operate as PSO halts supply over unpaid dues

No fuel, no fly: PIA struggles to operate as PSO halts supply over unpaid dues

By Staff Reporter

KARACHI: The loss-making national carrier Pakistan International Airlines canceled more than 85 percent of its scheduled flights on Sunday, citing a severe shortage of fuel that has crippled its operations for the past week.

The airline said it was able to operate only 11 out of 81 domestic and international flights on Sunday, after receiving fuel for only four aircraft from the state-owned Pakistan State Oil (PSO), which has suspended its supply to PIA over unpaid dues.

PIA spokesperson Abdullah Khan said the airline had made an advance payment of Rs220 million to PSO on Friday for fuel supply over the weekend, but it was not enough to meet the demand, resulting in massive cancelations.

“We were refused fuel on Sunday, which resulted in massive cancelations… only 11 flights could operate out of 81 scheduled flights due to fuel challenges,” Khan said. “Considering the way fuel is being supplied and PSO’s refusal to allow any credit line or relaxation to a fellow government organization, there are slim chances of a full restoration of flight operations.”

Khan said the airline would now focus on preserving its international operations, for which it could secure fuel from other sources, unlike in Pakistan, where it was bound to obtain fuel from PSO.

“However, our focus will now shift toward preserving our international operations, for which we can secure fuel from other sources, unlike in Pakistan, where we are bound to obtain fuel from PSO,” he said. 

He apologized to the passengers for the inconvenience caused by the airline’s row with PSO and urged them to keep their patronage of the national carrier, which he said was suffering from a financial crisis and had no other source of support.

“We have dealt with graver challenges in the past 75 years and each time we have risen back up in the face of adversity to serve this great nation in the hour of need,” he said.

PIA owed PSO Rs26.825 billion as of October 16, including Rs11.932 billion in late payment surcharges.

The airline’s request for Rs23 billion in operational support was declined by the government, prompting caretaker Prime Minister Anwaar-ul-Haq Kakar to initiate a restructuring plan to stabilize the airline’s finances. 

The former coalition government said in August that PIA will be privatised together with the outsourcing of operations at three major airports. The privatisation of PIA comes after Pakistan agreed to devise a policy on such loss-making entities as part of its $3 billion IMF bailout in July to avert a sovereign debt default.

PIA’s fuel crisis comes at a time when it is aiming to resume flights to the United Kingdom within the next two months, after being grounded in Europe and the UK since 2020 due to a pilot licensing scandal that led to the revocation of its authorization to fly to the bloc by the EU Aviation Safety Agency.

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