Flights to Canada
ISLAMABAD: Pakistan International Airline is going to suspend its flights to Canada mainly because of financial crisis.
Swiss Port Company has suspended provision of ground-handling services in Canada as national airline facing serious financial challenges.
“Due to non-payment of dues, PIA flights to Canada services are being stopped from 3rd October at 5 pm,” the statement reads.
The Swiss Port Company has demanded $248,000 dollars immediately. The company has also been demanding an advance of $100,000 dollars for the provision of future services.
“PIA has been repeatedly reminded to pay dues,” it is reported, adding that the ground-handling services are being discontinued. The company did this as per the respective terms of the agreement between the two entities.
PIA gets loans to mitigate financial crisis
Last month, Pakistan International Airlines (PIA) secured a bank loan which has led to improved administrative operations.
A PIA spokesperson confirmed the development, stating that they have obtained a loan of Rs17 billion. This financial injection has enabled the airline to promptly pay employee salaries and maintain the smooth operation of flights.
In a statement released earlier, spokesperson Abdullah Hafeez Khan assured that the airline was disbursing funds and meeting its domestic and international financial obligations.
The organization will allocate the incoming funds to settle payments to fuel companies. Furthermore, it will use them to procure spare parts for immediate aircraft repairs.
According to sources, the disbursement of salaries for officers and employees for the current month has been completed. Furthermore, payments for leased aircraft have also been initiated. This loan has seemingly provided a much-needed respite for PIA in addressing its financial commitments.
The government is actively pursuing the privatization of the Pakistan International Airlines. Additionally, the ground-handling services are being outsources to the foreign companies with the aim to attract investment and improve services.
