Saudi Arabia Issues Final Warning to Pakistan Airlines Over Non-Payment of Dues – News18

In a move that could worsen the woes of India’s neighbour, Pakistan Airlines has received the final warning from Riyadh Airport Authority over non-payment of dues.

As per exclusive emails and documents accessed by News18, PIA has received an ultimatum from the Riyadh Airport Authority (RAA) and the body has set a deadline of July 15 for PIA to pay the outstanding amount of 8.2 million riyals.

Failure to meet the deadline could potentially affect the airline’s winter flight schedule.

Additionally, PIA has been cautioned by the Jeddah Airport for non-payment of liabilities. A spokesperson for PIA confirmed the issuance of the reminder and stated that the airline is actively working towards making the payment and resolving the issue promptly.

Earlier, News18 had reported that the highly mismanaged Pakistani state airlines may even close down as the ECC failed to release the PKR 22 billion pending claims on account of markup up to June 2023, releasing mere PKR 4 billion.

It was also revealed that AerCap, a lessor of the PIA, impounded its B-777 aircraft last month at Kuala Lumpur. It was released after the Pakistan government made the overdue payment and pleaded the PIA receipts through the International Air Transport Association (IATA) clearing house.

Pakistan Prime Minister Shehbaz Sharif has said a high-level committee chaired by the finance minister will work out the restructuring, reformation and revival of the PIA.

The PIA is also facing a lawsuit in the US from Willis Leasing over non-payment. To avoid any further adverse action, the PIA are removing and returning the two A-320 aircraft engines leased from them. PIA insurance broker Alliana also issued a termination notice and demanded overdue payments and said once insurance stops so will flight operations.