Pakistan Airlines has received a final warning from the Riyadh Airport Authority (RAA) in Saudi Arabia over non-payment of dues, which could exacerbate the challenges faced by the airline. Exclusive emails and documents obtained by News18 reveal that the RAA has set a deadline of July 15 for Pakistan Airlines (PIA) to settle the outstanding amount of 8.2 million riyals.
Failure to meet this deadline may have implications for PIA’s winter flight schedule. The Jeddah Airport has also cautioned PIA regarding non-payment of liabilities. A spokesperson for PIA acknowledged the reminder and assured that the airline is actively working towards making the payment and resolving the issue promptly.
Earlier reports highlighted the financial troubles faced by PIA, with the airline at risk of closure due to the Economic Coordination Committee’s failure to release pending claims totaling PKR 22 billion. Only a fraction of this amount, PKR 4 billion, has been released thus far.
Furthermore, it was revealed that one of PIA’s B-777 aircraft was impounded by AerCap, a lessor, in Kuala Lumpur last month. The aircraft was released after the Pakistan government made overdue payments and provided proof of payment through the International Air Transport Association (IATA) clearing house.
Pakistan Prime Minister Shehbaz Sharif has announced the formation of a high-level committee, chaired by the finance minister, to address the restructuring, reformation, and revival of PIA. The airline is also facing a lawsuit from Willis Leasing in the United States over non-payment. In order to prevent further adverse actions, PIA is removing and returning two A-320 aircraft engines leased from Willis Leasing. Additionally, PIA’s insurance broker Alliana has issued a termination notice, demanding overdue payments and warning that flight operations will cease once insurance coverage is terminated.
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