Private Airlines not capitalizing on PIA's woes, investigation reveals

October 21, 2023 (MLN): The allegations surrounding private airlines raising fares amid Pakistan International Airlines (PIAC's) operational struggles are baseless, according to an investigation conducted by Mettis Link News on Friday.

News reports through various media sections claimed that private airlines have increased their fares to approximately Rs35,000 - Rs70,000 for a one-way ticket from Karachi to Islamabad due to long lineups of passengers.

These media reports have also claimed that PIAC, due to its fuel shortage, is experiencing delayed flights and flight cancellations.

However, during our conversation with the PIAC's spokesperson, he emphasized that all previous flights had adhered to their scheduled departure times, and the airline was actively accepting new bookings.

The investigation also extended to inquire with certain private airlines about the availability of tickets and their respective fares.

It was unveiled that the private airlines are charging under a range of Rs17,000- Rs19,000 for a one-way ticket from Karachi to Islamabad.

While for the return ticket on the same route, the range quoted was from Rs36,000 to Rs39,200.

In contrast, the national carrier, PIA, provided a fare of Rs44,000 for the same round-trip route.

Hence, this proves that the news circulating in the media about private airlines attempting to capitalize on PIAC's challenges by increasing their fares is unfounded.

The national carrier, PIAC, is facing immense troubles due to the pressure resulting from its debt repayment to the Pakistan State Oil Company Limited (PSX: PSO).

To recall, PSO suspended the fuel supply to PIAC amid its inability to settle dues, which, in turn, resulted in the cancelation of several PIA flights.

Despite these challenges, the national carrier is making significant headway in repaying its dues to the oil company.

It is important to mention that today, PIAC made a payment of Rs 220 million to PSO for the fuel supply, covering both Saturday and Sunday.

Sources close to the matter revealed that PIAC's outstanding dues to PSO amount to around Rs2bn this month to continue the smooth supply of jet fuel, out of which, PIAC has settled a significant proportion.

According to the latest information available, PIA finalized a list of 39 flights scheduled for Saturday.

To note, PSO supplied fuel worth Rs195m to the national carrier on Thursday.

This comes on top of the Rs3.45bn worth of fuel supplied to PIAC from October 01 to October 18, 2023.

PIAC still has a substantial outstanding debt to PSO, which is a crucial factor in maintaining a steady supply of jet fuel for its operations.

Nevertheless, PIA continues to welcome passengers on board and ensures timely departures for all its flights, demonstrating its commitment to operational efficiency.

Copyright Mettis Link News