The Civil Aviation Authority (CAA) stepped in to rescue Pakistan International Airlines (PIA) from a potential financial crisis with the International Air Transport Association (IATA).
According to ARY News, the CAA provided PIA with one billion Pakistani rupees to settle its outstanding dues with IATA. This timely payment prevented IATA from declaring PIA in default, a situation that could have led to the suspension of PIA’s global ticket sales.
It’s important to note that PIA was facing a severe financial crisis and couldn’t meet its service charges to IATA. The Director General of CAA confirmed that, following the Ministry of Finance’s directive, one billion rupees were allocated to PIA for a week to support the national airline during these challenging times.
In addition, it has come to light that PIA also owes a substantial amount to CAA, totaling several billion rupees.
