PIA suspends international operations after CJP remarks

• The suspension will be effective at 8 PM starting today (Saturday).
• Government is pondering to extend the suspension for domestic flights and ground all aircraft for two weeks.

Government has directed Pakistan International Airlines (PIA) to suspend international operations till March 28, a day after chief justice of Pakistan in his remarks held the airline responsible for spreading COVID-19 pandemic in the country.

According to details, Chief Justice of Pakistan (CJP) Gulzar Ahmed while hearing a case pertaining to the appointment of Air Marshal Arshad Malik as PIA’s Chief Executive Officer (CEO), in his remarks said the national flag carrier and airports were responsible for the spread of COVID-19 pandemic but government did nothing to avert its spread rather courts were asked to close and suspend the functioning of judicial work in the country.

A day after CJP remarks, the government has directed PIA to shut all international operations from March 21 for at least a week (March 28). In addition government is pondering to extend the suspension for domestic flights and ground all aircraft for two weeks.

PIA spokesman in a statement confirmed that the decision was made under government’s directives and it would be effective at 8 PM today (Saturday) and added that it has so far been decided to shut all international operations till March 28 and the final decision regarding complete suspension would be made by the government.

Sources said: “The expected revenue loss of the airline is Rs. 3.93 billion till March-end when it operates UAE sector at 40 percent of normal schedule and rest of the international operating at 75 percent of normal schedule along with suspension of Saudi Arabia, China, Doha, Kuwait and Milan. However, after complete suspension of its operations for a week, the airline will suffer additional Rs. 211 million revenue loss”.

The national flag carrier has reported net revenue amounting to Rs144 billion in its un-audited and unconsolidated profit and loss report for 2019 and out of total net revenue, 65 percent (Rs93.6 billion) was generated only from KSA and UK sectors, which means the airline earns Rs7.8 billion approximately per month from these two sectors.

Therefore, the airline, which is already carrying Rs17 billion loss for 2019, will have to soak up additional financial loss of Rs12 billion per month in case of complete international flights suspension; sources said and added that if the current lockdown continues for next two months the aggregated loss would surpass Rs50 billion, dragging the airline towards closure.

Replying to a question, sources said PIA, which had now started facing difficulties to pay salaries to its 11,700 employees, would definitely seek bailout package from government in case of current lockdown extended for next two months.