Civil Aviation Authority (CAA) is suffering a loss of Rs 1.1 billion per month due to non-payment of dues by Pakistan International Airlines (PIA). According to the documents available with Business Recorder, CAA dues payable by PIA increased to Rs 49.162 billion by June 2016 from 37.933 billion in 2015, Rs 29.463 in 2014, Rs 19.098 in 2013 and Rs 11.965 billion in 2012.
Sources in CAA further revealed that PIA's pending payables include embarkation fee, security charges and infrastructure development charges. Negotiation is under process at headquarter level, sources said, adding that as CAA and PIA are under the administrative control of the same Ministry therefore extracting money has become a challenge for CAA.
CAA, sources stated, needs money to enable it to achieve international standards and has to cater to the needs of PIA as well as other private airlines registered in Pakistan that include Airblue, Shaheen Airlines and Bhoja Airways. CAA is responsible to ensure clearance and fitness of planes, state safety program, safety and security oversight.
PIA officials confirmed that negotiations are under way and the government has set up a committee to look into the matter. Officials further stated that PIA is facing a financial crisis and running its operations at a loss at the moment and this is not an appropriate time to demand repayment from PIA.
The annual loss of PIA has crossed Rs 50 billion during the last two years; PIA's loss was Rs 210 billion during the last decade, which has increased to Rs 270 billion, and the airline has to repay loans of Rs 300 billion. Mismanagement, financial corruption, embezzlement, overstaffing, nepotism, and induction in violation of merit, especially appointments on political recommendations, unqualified engineering department and negligence in clearance of planes are key features that have accounted for accumulation of PIAs financial woes, sources added.