CAA provides Rs1bln to PIA, saves it from defaulting to IATA

KARACHI: The Civil Aviation Authority (CAA) by providing one billion rupees to Pakistan International Airlines (PIA) has saved it from defaulting to the International Air Transport Association (IATA).

According to details, PIA was facing threat of being declared in default by IATA, which would have resulted in the suspension of PIA’s ticket sales worldwide but the CAA provide Rs1 billion to the national flag carrier to pay dues to IATA.

It’s pertinent to mention here, the PIA due to its financial crisis was unable to pay its service charges to IATA.

The Director General of CAA confirmed that on the directive of Ministry of Finance Rs one billion allocated to PIA for a week, assisted the national airline during challenging times.

Sources also indicate that PIA itself owes a significant amount in dues to CAA, amounting to several billions. -INP