The Pakistan International Airlines (PIA) revealed that it has canceled a total of 349 flights in the past two weeks due to a severe shortage of fuel. This unsettling development highlights the ongoing challenges faced by the financially troubled national flag carrier.
A spokesperson for PIA clarified that the airline’s fuel crisis has severely impacted its regular operations for the past two weeks. However, they assured the public that flights are being rescheduled on a daily basis in an attempt to mitigate the disruption caused by the shortage.
The spokesperson explained that the flights are being scheduled based on the availability of fuel, as the PIA and the Pakistan State Oil (PSO) have been embroiled in a payment dispute. According to PIA, the PSO suspended its credit line for fuel, now demanding daily advance payments before releasing supplies.
The payment dispute can be traced back to a recent decision by the Federal Board of Revenue (FBR) promising the airline a payment of Rs1.8 billion for the revival of its frozen accounts. However, the airline’s management was unable to take advantage of this facility. Subsequently, a standard operating procedure (SOP) was established, requiring PIA to make daily advance payments for fuel to the PSO.
The spokesperson further disclosed, “The flight cancellations since October 14 have affected both domestic and international routes,” making it clear that the impact of the crisis has been widespread.
This fuel shortage crisis unfolds at a time when Pakistan has declared its intention to privatize the airline, aligning with a fiscal discipline plan established as part of an International Monetary Fund (IMF) bailout agreement reached in June. The PIA has amassed substantial losses and liabilities, prompting the caretaker government to assert that it can no longer sustain the airline financially.
“The PIA is trying to manage funds,” the airline’s statement stated, adding that the resumption of normal flight schedules would be contingent on the availability of funds.
PIA indicated that, once flights resume, priority destinations will include Canada, Turkey, China, Malaysia, and Saudi Arabia. The airline intends to keep passengers updated on its schedule as the situation evolves.
It is noteworthy that PIA flights to Europe and the UK have been suspended since 2020 after the European Union’s Aviation Safety Agency (EASA) revoked the airline’s authorization to operate in the region in the aftermath of a pilot license scandal. This crisis traces back to the tragic crash of PIA flight PK-8303 in Karachi on May 22, 2020, followed by the announcement by the then aviation minister Ghulam Sarwar Khan, revealing that 262 airline pilots were suspected of fraudulent practices in their examinations.
