An old aviation pun used to suggest PIA stood for a pain in a particular part of the anatomy and that is how the autumn is working out for PIA (Pakistan International Airlines).
The carrier is back into uncertainty as its fuel supplier, Pakistan State Oil (PSO), has cut off fuel access for a second times, resulting in the cancellation of most scheduled flights. Only four international flights managed to operate.
PIA has promised to make daily payments of PKR100m (€400k) to reduce its debt in exchange for a restricted fuel supply from PSO.
Pakistan’s caretaker prime minister has called for the acceleration of PIA’s partial privatisation process in light of the flight disruptions.
PIA received a PKR18bn (€61m) loan from two financial institutions in September to address payroll obligations and stabilise operations.
PIA has requested PKR1.5bn (€5m) in emergency funding and another government guarantee for a PKR7.5bn (€25m) loan to secure funding and keep the airline flying.
PIA is negotiating with Asia Aviation Capital Limited (AACL) to settle a lease dispute involving two A320-200 aircraft parked in Jakarta, with PIA expressing interest in purchasing them if a settlement is reached.
