CAA saves PIA from defaulting to IATA

KARACHI: The Civil Aviation Authority (CAA) reportedly played a vital role in saving Pakistan International Airlines (PIA) from defaulting on its payments to the International Air Transport Association (IATA), ARY News reported on Saturday. 

CAA provided PIA with Rs one billion to settle its dues with IATA, reports claimed that without this immediate payment, PIA would have faced the threat of being declared in default by IATA, which would have resulted in the suspension of PIA’s ticket sales worldwide.

It’s pertinent to mention here that due to its financial crisis, PIA was unable to pay its service charges to IATA.

The Director General of CAA confirmed that on the directive of Ministry of Finance Rs one billion allocated to PIA for a week, assisted the national airline during challenging times.

Sources also indicate that PIA itself owes a significant amount in dues to CAA, amounting to several billions.