09/04/2023
Pakistan International Airlines (PIA) is in financial turmoil after being reportedly denied a 23 billion Pakistani Rupee (US$75 million) bailout package from the countryβs government.
The airline had already received a 15.6 billion Pakistani Rupee (US$188 million) support package back in May 2023.
The rejection of the airlineβs petition adds to several woes afflicting the airline. In the first months of 2023, PIA faced multiple legal challenges from its creditors, including aircraft lessors and airport operators, and has had assets repossessed in several jurisdictions due to lack of payment.
Also, 11 of the airlineβs 32 aircraft are grounded, with three in a state deemed beyond repair.
In August 2023, the Pakistani government announced its intention to privatize the airline, which is expected to post a 112 billion Pakistani Rupee (US$365 million) loss in 2023, since it is deemed to be financially unviable in its current form.