Pakistan International Airlines cancels flights over non-payment of dues to fuel supplier

Pakistan International Airlines (PIA) operations were halted yet again on Sunday (Oct 22) due to a lack of fuel as the nation's flag carrier keeps getting hit by setbacks. Pakistan State Oil (PSO) stopped fuel supply to PIA, severely impacting the airlines.

Local media outlets reported that the airline cancelled around 70 flights from major cities like Karachi, Lahore, Islamabad, and more.

The affected passengers were provided with alternative flights, a PIA spokesperson said as quoted in media reports.

PIA has faced multiple crises, including losses, but the current state appears to be dire in recent years.

In a recent statement, PSO said it had received an advance payment of $789,804 for the supply of fuel on Saturday and Sunday. They also received a list of some PIA aircraft.

However, the PIA spokesperson claimed that only four aircraft were fueled on Sunday, which affected the flight operations.

For operational support, the airline requested $76 million, but it was declined by the government. However, there's no information on whether or not caretaker Prime Minister Anwaar-ul-Haq Kakar will opt for a restructuring plan to stabilise the finances of the airline.

PIA spokesperson Abdulllah Khan told Arab News: "On Sunday, only 11 flights could operate out of 81 scheduled flights due to fuel challenges." He said that the airline had been making advance payments to PSO for fuel supply.

"The Pakistan International Airlines made a payment of Rs 220 million on Friday which could last the weekend, but it did not. And on Sunday, we were refused fuel which resulted in massive cancellations," he said.

As per Khan, there were "slim chances of a full restoration of flight operations" considering the way fuel was being supplied and amid PSO's refusal to allow any credit line or relaxation to "a fellow government organisation".

"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.

(With inputs from agencies)

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