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PIA reports recovery in flight operations after securing Rs17bn loan

The cash-strapped Pakistan International Airlines (PIA) reported a recovery in its flight operations on Sunday after managing to secure a Rs17 billion bank loan.

The development comes after the national carrier reportedly grounded several aircraft as it struggles to secure funds to maintain its operations for the next few months. Some media reports had also claimed that the operations would be ceased by Sept 15, evoking a strong response from the airline’s management and lawmakers in the Senate.

The Ministry of Aviation, while seeking a cash injection of Rs23 billion, has also informed the government that Boeing and Airbus — two of the leading commercial jet manufacturers — were on the verge of discontinuing spare parts’ supply by mid-September, according to reports.

Earlier this week, PIA spokesperson Abdullah Hafeez Khan refuted reports of the flag carrier’s closure as baseless and said the flight operation was continuing. He added that the airline was also disbursing most urgent domestic and international payments.

A day earlier, the airline said it had managed to get an Rs17 billion loan, after which salaries of employees had been paid and the flight operation was running smoothly.

It stated that PIA was releasing funds and fulfilling its national and international obligations and payments would be made to fuel companies. Spare parts of the aircraft for immediate repair would also be purchased.

In a statement issued today, PIA’s Khan said there was an improvement in the flight operations of the flag carrier.

“Seventy-seven flights will be operated from airports across the country today,” he said.

Of these 77 flights, 25 will be operated locally while the remaining account for international flights, Khan said, adding that the ratio of PIA flights that would operate as per the schedule today was 87 per cent.


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