Mounting losses, piling debt crippling Pakistan International Airlines: Report

Islamabad [Pakistan], April 14 (ANI): Pakistan International Airlines (PIA), which is known for its mismanagement and poor services, is sinking into the sea of losses and the tax debts have amounted to over USD 1.4 billion, Kaliph Anaz wrote in AsianLite International.

The PIA is now carrying the image of Pakistan’s despondency around the world.
Recently, a Pakistan News outlet ARY News stated that PIA has tax debts amounting to over Rs 400 billion (USD 1.4 billion). The carrier had also recently asked for a government bailout to the tune of Rs 45 billion (USD 157 million).

Reportedly, the Saudi airport authorities, including King Abdul Aziz International Airport, Jeddah and King Khalid International Airport, had sent final notices to the airlines for clearing their dues. Till now the generosity of Saudi authorities had ensured a trouble-free run for the ailing airlines despite pilling up dues to the tune of nearly USD 40 million. However, weary of PIA management’s antics of avoiding the settlement of liability, they have demanded clearances of outstanding dues.

The PIA is not only facing economic issues but also has a bad reputation for its services. The civil aviation authority of the Kingdom has warned PIA several times in the past on the issue of flight delays and poor services.

Notably, PIA’s time punctuality has been less than twenty per cent in the last six months. Earlier, the frequent delays had even resulted in the shifting of PIA flights from Jeddah’s North Terminal to Hajj as a penalty. Shifting of its Jeddah operation towards Hajj Terminal was a major blow to PIA’s reputation, and market share and was inconvenient for passengers, particularly Umrah pilgrims, reported AsianLite International.

The closure of PIA operations at any airport in Saudi Arabia will adversely affect the Hajj operation and will also impact the Pakistan government’s prestige. PIA has been criticized for its inefficiencies, including overstaffing and a lack of modernization in its operations. The airline has also been accused of corruption, which has further contributed to its financial troubles.

In 2020, the airline was left with accumulated losses of over USD 3.3 billion due to high operating costs, inefficiencies, incompetence, and looting.

In 2020, the European Union Aviation Safety Agency (EASA) suspended PIA’s authorization to operate in European airspace due to concerns over the safety of the airline’s operations. This also suggests the presence of political interference which leads to issues like the appointment of unqualified staff and the misuse of airline resources, according to AsianLite International.

Recently, online media outlets were filled with reports about PIA pilots considering protesting against unpaid salaries at the airlines. However, The Express Tribune reported that PIA on Wednesday refuted reports that its flight operations would be affected due to non-payment of salaries to its staff.

In a statement, its spokesman said though the institution faced financial constraints due to the economic situation in the country, it had paid salaries to staff in Groups I to IV on time.

However, he said, salaries of certain officials were delayed, adding that the payment would be made within the next few days, reported The Express Tribune.