ISLAMABAD: Once a profitable entity and a source of national pride, the national flag carrier hit an all-time low on Sunday as its operations came to a halt once more, primarily due to a fuel shortage.
While suffering losses amounting to Rs750 billion, Pakistan International Airlines (PIA) has a history of recurrent crises. The current situation, in which 77 flights were canceled on Sunday due to Pakistan State Oil (PSO) cutting the carrier’s fuel supply, is perhaps the most dire in recent years.
This marks the second instance in less than seven days where the two state entities have clashed, with PSO citing increasing unpaid dues as the reason for withholding fuel from PIA aircraft.
On Sunday, the national carrier had 81 flights scheduled for departure, comprising 52 international and 29 domestic routes. However, with the exception of four international flights, all others were canceled.
PIA confirmed the cancellation of both domestic and international flights due to the suspension of fuel supply by PSO. Nevertheless, late in the night, the spokesperson announced a partial restoration of flight operations, with flights to Jeddah departing from Karachi, Islamabad, Lahore, and Multan. Another flight also departed from Islamabad to Riyadh.
The PIA’s top management is actively seeking to reestablish contact with PSO in order to restore fuel supply. In a late-night update, the airline disclosed that 61 flights were scheduled for the following day (today). Of these, 42 will operate on international routes, and 19 on domestic routes.
The spokesperson expressed hope that the evening flights on Monday would proceed as scheduled once a credit line was made available to settle the fuel costs.
This crisis comes at a time when the caretaker government is aiming to expedite the process of relieving the burden of the financially struggling entity. Last month, the Privatisation Commission outlined a clear timeline for PIA’s privatization, signaling the government’s intent to divest the loss-making state institution at the earliest opportunity.
PIA Flight Cancellations Cause Distress and Employee Crisis
The widespread flight cancellations left thousands of distressed passengers, and PIA employees, who’ve witnessed the airline’s decline, admitted the situation had never been this severe. The airline couldn’t provide a tentative departure time as they awaited instructions from top management. Some travelers returned home, while others remained at the airport, hoping for a flight.
The airline is working to accommodate passengers on alternative flights and apologized for the inconvenience.
A senior pilot stranded in Lahore due to flight cancellations noted that he had never seen the airline in such dire straits, emphasizing that only one flight from Lahore to Karachi is scheduled for today.
Controversy Surrounds PIA’s Crisis and Leadership
Safdar Anjum, the General Secretary of PIA’s Senior Staff Association, has alleged a deliberate conspiracy to destroy the airline. He places blame on the current crisis squarely on the “incompetent CEO and his team.” In his social media posts, Mr. Anjum demanded the immediate termination of the CEO and his team, asserting they were brought in with the sole purpose of dismantling the airline.
According to Mr. Anjum, PIA continues to generate revenue despite operating with only 16 aircraft. He also pointed to a former aviation minister’s statement in the National Assembly, which he claims inflicted significant damage on the airline. The statement in question, made in June 2020, alleged that more than 30% of the country’s civilian pilots held “fake” licenses. This led to the suspension of PIA’s authorization to operate in the European Union, a decision that remains in effect.
Mr. Anjum contends that PIA’s profitable routes to the UK and Europe have been suspended for over three years. Despite this, he believes the airline is still earning well, with the primary burden being bank loans that could be repaid with effective financial management. He concludes that if the CEO cannot control the situation, he should resign.
However, an aviation expert asserts that PIA’s current predicament is primarily the result of poor management practices that emerged when individuals were hired on deputation by the airline.
