Aviation news international – Pakistan’s tax agency has again frozen bank accounts operated by PIA – Pakistan International Airlines (PK, Islamabad International), according to that country’s Dawn newspaper. The Federal Board of Revenue (FRB) claims the state-owned carrier owes it PKR2.8 billion Pakistani rupees (USD9.8 million), a figure PIA disputes, saying the amount outstanding is more like PKR1.3 billion (USD4.5 million).
The FRB regularly freezes the airline’s bank accounts in what appears to be a tactic to bring PIA to the negotiating table and extract some payment. In April, ch-aviation also reported that the tax agency seized PKR1.3 billion in unpaid taxes from the airline’s bank accounts, resulting in problems processing employee payroll at PIA. A spokesman for PIA told ch-aviation that the airline was already in the process of resolving the current freezing order.
PIA’s latest imbroglio with the FRB comes as it reportedly closes in on a deal with European Union and United Kingdom authorities to resume flights to both jurisdictions. The airline reportedly passed an initial European Union Aviation Safety Agency (EASA) audit after…
Editorial Comment: Islamabad sources report that the Federal Board of Revenue lifted the freeze order on the evening of July 27. – 28.07.2023 – 08:32 UTC
EU regulators in talks with Pakistan over PIA ban
26.07.2023 – 03:04 UTCEuropean regulators have confirmed they are in “constructive dialogue” with the Pakistan Civil Aviation Authority (PCAA) over PIA – Pakistan International Airlines (PK, Islamabad International) resuming flights to the European Union after it was banned from the bloc in 2020 following a scandal over fake pilot licenses.
A spokeswoman for the European Union Aviation Safety Agency informed ch-aviation: “EASA and the European Commission are in constructive dialogue with the Pakistan CAA. A visit to Pakistan by an EASA team will depend on the progress of those discussions”.
This followed numerous media reports that a remote audit of PIA by EASA a few months ago would be followed by an on-site audit of the airline and the PCAA in September 2023.
EASA banned the Pakistani flag carrier from EU airspace on July 1, 2020, over a fake pilot license scam at the airline. UK and US aviation regulators followed suit. The scandal was revealed following a parliament inquiry into the crash of a PIA A320-200 at Karachi International on May 22, 2020, which…
Pakistan’s PIA leases out its Heathrow slots for the summer
21.07.2023 – 03:52 UTCPIA – Pakistan International Airlines (PK, Islamabad International) has lent its London Heathrow slots over to other carriers for the IATA 2023 summer season as the UK Civil Aviation Authority continues to blacklist all Pakistani carriers. However, plans are afoot in Islamabad to have that flight ban lifted and see PIA resume flying to London.
According to filings with airport slot coordinators, PIA has surrendered six weekly slot pairs to Vietnam Airlines (VN, Hanoi) between April 1 and October 2023, as well as ten weekly slots pairs to Kuwait Airways (KU, Kuwait) between March 26 and October 22, 2023.
The slots are made available to airlines at London Heathrow on a use-it-or-lose-it basis, with airlines holding slots required to use them at least 70% of the time. The CAA banned PIA in 2020 in the wake of a pilot licence forgery scandal. However, by leasing out its slots to carriers which will use them, PIA complies with the terms of its slot contract. Heathrow Airport, which…
Islamabad preps renewed PIA privatisation plan
07.07.2023 – 03:24 UTCThe privatization of PIA – Pakistan International Airlines (PK, Islamabad International) is back on the agenda according to the Pakistani Ary News outlet, which cited undisclosed sources. The airline is just one of several state-owned enterprises (SOEs) the current Shehbaz Sharif government wants to see moved to private hands akin to how Air India (AI, Mumbai International) was sold to Tata Sons.
The government argues that the privatisation push, which includes Islamabad International Airport, will not only make the SOEs more efficient, it will bring in much-needed investment funds.
Plans to partially or fully privatise PIA are not new, with proposals dating back decades. Most recently, in 2021, discussions were reportedly underway to split up the carrier’s various operations and sell them off, only for government figures to later scotch the reports. However, with the ousting of Imran Khan’s government in 2022, the current administration is “fully prepared to transfer management control of these institutions to the private .” Prime Minister Shehbaz Sharif has reportedly taken an interest
