PIA's flight operations may face disruption; Here's the reason

ISLAMABAD - Pakistan's national flag carrier, Pakistan International Airlines (PIA) can face serious disruption in flight operations primarily due to issue related to delays in salary.

According to the details, several officers as well as pilots of the airline have not received remuneration for the month of March as the Federal Board of Revenue (FBR) has deducted dues against pending payments.

Employees of the airline in pay group 5-10 have not been paid up until now as the tax regulator has deducted over Rs 1 billion from the accounts of the airline.

FBR's move has also impacted the pilots who are mulling to register protest, a likely indication of which could be disruption of flights across the country and even for international destinations if the situation aggravates.

The employees in Pay Group 1-4 were also paid the remuneration after some delay recently and the rest of the affected employees hope to receive the salary by next week failing which the commuters can face serious trouble to move ahead of Eid al Fitr.

It merits mentioning that FBR has yet to receive Rs 400 million from the airline which has been struggling for quite a long time for being non-profitable. Pakistan State Oil company, K-Electric, fleet insurance, aircraft and engine lessors have also to receive pending payments from the airline.

The national flag carrier recently sought another Rs45 billion bailout package from the government to pay for interest costs and finance its operations.

Sources disclosed that PIA has asked for a Rs22 billion federal support to pay off interest on its loans, Rs15.6 billion in the form of additional sovereign guarantees to take more loans, and another Rs7 billion to buy an aircraft.

A meeting was also conducted recently which was attended by the Federal Minister for Railways and Aviation Khawaja Saad Rafique along with Finance Minister Ishaq Dar and his team.

“The meeting also discussed the restructuring of PIACL in order to enhance its performance and make it compatible with international standards,” according to the ministry. The finance minister promised to support the timely execution of the Civil Aviation, PIA, and Pakistan Railways projects, the Finance Ministry stated.