Ground Handling
ISLAMABAD: Pakistan International Airlines (PIA) has clarified that its flight operations to Canada are proceeding as scheduled and are not disrupted.
Concerns arose when PIA flight PK 790 faced issues in Canada related to ground handling and fuel company complaints.
A PIA spokesperson confirmed that the outstanding dues of $200,000 owed to the ground handling company have been settled today.
Consequently, the PIA aircraft has been released for flight operations following the payment of these dues.
The delay in payment was attributed to the time difference between the two countries. It resulted in a four-hour delay for Flight PK 790, according to the spokesperson.
Earlier, Swissport, the ground handling company in Canada, had expressed its concerns in a letter dated October 3. The company warned that it would cease providing services from Oct 3 if PIA failed to clear outstanding payments.
The letter emphasized that PIA had been consistently late in settling payments for services rendered in Toronto, with an outstanding balance of $141,662 and an additional $106,634 due in the near future.
Swissport demands urgent payment from PIA in Canada
Earlier, Pakistan International Airline faced the risk of suspending its flights to Canada mainly because of financial crisis.
Swiss Port Company has threatened to suspend provision of ground-handling services in Canada in case PIA did not make payment.
“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.
