Pakistan International Airlines (PIA) sources revealed a crisis on Sunday, resulting in the cancellation of 43 international and 29 domestic flights due to a fuel shortage for its aircraft. This situation arose from a dispute over fuel supplies with the Pakistan State Oil (PSO), leading to significant disruptions in air operations.
“The situation has become serious as the PIA’s air operations came to a standstill,” sources reported. Flight cancellations had been a persistent issue, but Sunday saw a remarkable surge in cancellations. Notably, flight crews reported for duty, yet the planes remained grounded.
A source disclosed to The Express Tribune that the national airline suffered a staggering loss of Rs700 million in a single day due to flight inoperability. The lack of communication between the top managements of PIA and PSO further compounded the crisis.
The current payment dispute stemmed from a decision by the Federal Board of Revenue (FBR) to ensure PIA a payment of Rs1.8 billion for the revival of frozen accounts. However, PIA management was unable to take advantage of this opportunity. Subsequently, an agreement was reached for a daily advance payment standard operating procedure (SOP).
On Sunday, a tense situation unfolded concerning fuel payments as PIA reached its daily limit. The airline had operated four flights the previous day, purchasing fuel for various international destinations, which exacerbated the situation due to a limited credit limit.
Despite Sunday being a closed holiday, the lack of communication among top managements contributed to the disruption in air operations. Approximately 10,000 passengers were affected, and the airline incurred a loss of Rs700 million in a single day.
The PIA spokesperson noted that partial restoration of flights was accomplished through the airline’s efforts. Measures were being taken to address the financial crisis, with contacts established with the PSO administration, and requests made to the aviation ministry to normalize air operations.
A PSO spokesperson clarified that fuel supply to PIA had not been halted. The PSO continued to provide fuel for the flights chosen by PIA based on the daily list and payments submitted by the airline.
Over the last 36 hours, fuel was supplied for 64 flights, including five flights operating between noon Saturday and 10 am Sunday.