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ISLAMABAD: Saudi Arabia's General Authority for Civil Aviation (GACA) warned the Pakistan International Airlines (PIA) of halting all flights in case unpaid dues were not cleared by the national airliner by April 17, DawnNews reported.
Sources said Saudi Arabia's civil aviation authority has issued several notices to the PIA in the past as well but this appears to be the final warning.
In case the dues are not paid by April 17, provision of parking and other facilities to the national flag carrier could be suspended, sources further said.
The PIA is in a restructuring phase after the government announced in September last year that 26 per cent of its shares would be privatised. Disinvestment of the airline, the government believes, is the only way of saving it from total extinction.
The company is losing Rs87m every day which is equivalent to $305 million a year and its accumulated losses have spiked to Rs180bn.
The government has already injected Rs11.75bn as equity this year and plans to invest another Rs4.25bn to keep it flying.
One-third of its present fleet of 34 planes remains grounded because of overage or want of repairs.
Read more
On DawnNews
Comments (38) Closed
Apr 16, 2014 01:08pm
Please ask another 1.5 B friendly support from KSA to save PIA.
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Apr 16, 2014 01:35pm
where is PIAs great pride of slogan 'great people to fly with' until 1970s?
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Apr 16, 2014 01:52pm
1976 PIA declared Airlines of the year- and look what they have done to it.
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Apr 16, 2014 01:56pm
Shame on successive, corrupt management!!!
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Apr 16, 2014 01:56pm
PIA and its staff have caused nothing but embarrassment to the nation. It is beyond me as to why we keep funding this airline. With 34 planes (one third of those are grounded) PIA employs around 20,000 people which equates to around 600 people per plane. Why can we not cut of our losses and close down PIA?.
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Apr 16, 2014 01:56pm
well would like to mention one reason which might have contributed to PIA dues, last year one of the PIA flight for saudia had some minor engine fault mentioned by the engineer, Pilot under pressure from high up that flight should be delayed took risk and flew to saudia, upon landing saudia engineers did some pre-check and informed PIA that flight will not leave unless this issue been solved, cut short that plane had to stay there for few weeks, engineers from PIA had a chance to made some TADA, and what else and what not, and above that plane was parked there so one can imagine the parking fee, and al that PIA could have avoided, if there was a fault which was detected here not why risk was taken, story was told by one of the pia employee sitting next to me during a flight to isb. someone needs to investigate it and if its the case. all concerned people should be punished,and loss should be recovered by selling what ever they belong only then others will learn lesson.
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Apr 16, 2014 02:13pm
If the flights are always full and they charge the highest since other airlines are not allowed direct routes to Pakistan then how is it that PIA is loosing money? Can someone please explain this to me ?
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Apr 16, 2014 02:14pm
Like many other promising Institutions of Pakistan, PIA actually died in 1971. The 'great people' were eaten up by Bakkar brothers.
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Apr 16, 2014 02:30pm
We should thank Air Indus(owned by Fariyal Talpur) (Asif Ali Zardari's Sister) for sucking the life out of PIA. No Audits, no pay backs. Pakistan is a private property of 2 families.
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Apr 16, 2014 02:42pm
It would be nice to know in the article, how much PIA Owes the Saudi GACA?
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Apr 16, 2014 02:43pm
@Canuck:
I will explain. PIA is not run as a business its run as a joke!! Summer tickets from UK to Islamabad
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Apr 16, 2014 02:46pm
The amount of unpaid dues is missing.To keep PIA flying the so called recently gifted fund may be used. The generous Saudi Arabia in the wake of opening his treasury box throwing 1.5 B to be held by his so called our man in Pakistan, should not go and ask for the outstanding bills.Koi yes man se poochey ye kaisi sachhi yari hai.
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Apr 16, 2014 02:55pm
It seems like Pakistan Govt. is not spending all of 1.5 billions according to the terms of the deal.
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Apr 16, 2014 03:07pm
In addition to grounded planes the other main reasons for this kind of pathetic situation is over staffing and cruel practice of free tickets.
While there is no indication of any drastic step for relieving the extra staff, the govt seems intent on continuing to dole out tax payers' money on the pretext of helping the national airline. But despite many of such assistance packages not much improvement is seen,
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Apr 16, 2014 03:16pm
@Canuck:
There is no rocket science to understand the reasons...
1) over staffed due to political compulsions, which the present political parties are unable to STOP...
2) Poor governance & mismanagement
3) Corruption in Purchases etc;
Compare with Shaheen & AirBlue & one can easily understand......
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Apr 16, 2014 03:27pm
@Khalid:
because all the employees are relatives and brothers of every prime minister, presidents and ministers. so they must not be unemployed..
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Apr 16, 2014 03:35pm
PIA was the first Asian airline to operate a jet aircraft and Boeing 737 aircraft, made a world record for the Speed over a commercial airline service for powered landplanes of 938.78 km/h, a record which still holds to this day
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Apr 16, 2014 03:37pm
Thanks to the democratic Govt.
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Apr 16, 2014 03:40pm
Thanks to Dramatic govt's not democratic Govt.
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Apr 16, 2014 04:23pm
Excellent, I wanted someone to get back at you PIA for giving me the worst flight experience ever. BRILLIANT!
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Apr 16, 2014 04:35pm
well concerned authorities should read the comments, it can give them an idea where to start from, Its not about PIA that has brought us shame. its the working culture being detroyed by i dont know who but there is someone either its outsider or insider.its the problem of working attitude of all of us, that has brought shame to few with dignity. i am sure PIA employees will be reading the news and comments and will also be saying same but if employees think same then who is the culprit ,well none of us is serious with work i.e we r bringing shame to ourselves. e.g its my office time and i am writting comments rather i should be working for what i have bee paid for isnt it..
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Apr 16, 2014 05:59pm
I am not one bit surprised to hear about the plight of PIA. What else can you expect from a corrupt organzation governed by corrupt group of people in a corrupt country.
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Apr 16, 2014 06:12pm
@Syed Kazmi:
the style of PIA management was to keep costs high and spirits low.
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Apr 16, 2014 06:28pm
@gerry d'cunha:
they already took flight and left in 1970
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Apr 16, 2014 07:24pm
UK's low cost airline Easyjet which flies to around 600 destinations in 32 countries and employs just over 8,000 people. Compare that to around 20,000 people for 34 planes?. Dare I say more?
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Apr 16, 2014 08:55pm
What about ''Ummah''??? No Muslim country could do this to another Muslim country... Intimidating your Muslim brethren is against the basic tenets of Islam... May Allah show them the right path...
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Apr 16, 2014 10:44pm
Good news for PIA pilots and staff who would be on a paid holiday soon. The passengers too shall heave a sigh of relief that they wont be suffering extreme anxiety of reaching home safe and sound after boarding PIA flights as most aircrafts are aged and poorly maintained.
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Apr 17, 2014 01:02am
Is this the same PIA that was run by Air Marshall Nur Khan. The present situation is a gift of top democratic government officials who are both incompetetent/corrupt..
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Apr 17, 2014 01:30am
Makes me wonder which is worse PIA or railways.
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Apr 17, 2014 04:46am
@Fatima:
It was a Boeing 720 not Boeing 737 that made the record.
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Apr 17, 2014 05:23pm
just put " Air India " in place of PIA , the rest things will be unchanged
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Apr 17, 2014 06:34pm
It really a shame having such an airline.. atleast remove the flag from it !!
One of the fleet aircraft is parked in the muscat airport since Feb 2013 easily visible from roadside and everyday i pass by and curse the pia officials. for heaven sake just cover or paint the plane.
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Apr 17, 2014 11:43pm
Things just keep getting worse for PIA, these are incredible loss figures, whats going on? Prices are sky high yet airline is at the brink of bankruptcy. Surely the top guys must be doing something to mitigate against such terrible losses.
Close down unnecessary sites to begin with
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Apr 18, 2014 02:44am
@Danish:
Why not sell it to Saudis ? Taking into consideration $1.5 billion they gave us a gift, let us give them 30% discount.
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Apr 18, 2014 04:10am
@Zak:
It took one honest man , a man of integrity, Air Marshall Nur Khan to make it on of the finest airlines.
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Apr 18, 2014 01:18pm
PIA ... finally living to its name, if you know what A stands for ...
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Apr 18, 2014 10:33pm
May God bless Pakistan that's all we can do and pray and watch what game frogy leadership have next to play with billions of highly talented and educated people ...poor leaders dont even know how to express their issue to int media ...can do nothing but just smiling and looking at faces/citizens as if they are fried chicken and Pakistanis are force to follow such an illiterate leadership like Zardari , Nawaz , Altaf to remain slaves ever and forever.....
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Apr 19, 2014 12:06am
Islamabad airport is an organised dump, pia is the mirror image. someone please pull the plug, and let pia and all R I P
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