PIA likely to ground more planes amid financial crisis

KARACHI: Pakistan International Airline (PIA) is likely to ground more planes amid the current financial crisis, ARY News reported.

As per details, the flight suspension looms on the PIA heads as 15 more aircraft will be grounded if the national airline does not pay the amount within two days.

Sources within the PIA revealed if the funds are not given it may affect the flight operation and over 30 planes are expected to ground.

The national airline is in need of the funds but the caretaker government refused to release the funds.

Read more: PIA financial crisis: International authorities reject collaboration

On September 2, the international organizations refused to go along with Pakistan International Airlines (PIA) due to the country’s negative credit rating and dependence on the State Bank for foreign exchange.

Due to the lack of attention from the government, the national flag carrier is grappling with one of the most severe financial crises in history.

According to the sources, PIA’s four Boeing 777 and five Airbus 320 aircraft are feared to be grounded due to its inability to meet financial obligations. Leasing companies have declined to collaborate with PIA, citing concerns about the country’s CCC credit rating.

International institutions believe that PIA’s risk exposure increased due to delays in lease payments, and they are concerned that PIA may need approval from the state-owned bank – State Bank of Pakistan – for its international financial transactions, which could erode confidence in the national airline.