Pakistan struggles to pay global airlines

by IANS |

Islamabad, March 17 (IANS) The global air transport body has warned of an "aviation crisis" in Pakistan as airlines are struggling to recover $290 million due to a severe financial crisis.

Pakistan Civil Aviation Authority (PCAA) has said it was trying to pay the airlines on time and has been in contact with relevant authorities over the issue, Dawn reported.

The Financial Times, while quoting the International Air Transport Association (IATA) said it has become "very challenging" for carriers to serve Pakistan as they struggle to repatriate their dues which are paid in dollars.

The IATA, which represents some 300 airlines comprising 83 per cent of global air traffic, said $290m were stuck in Pakistan as of January up by almost a third since December, Dawn reported.

"Airlines are facing long delays before they are able to repatriate their funds," Philip Goh, the IATA's Asia-Pacific head, was quoted as saying by FT.

"Some airlines still have funds stuck in Pakistan from sales in 2022. If conditions persist that make the economics of operation to a country unsustainable, one would expect airlines to put their valued aircraft assets to better use elsewhere," Goh added.

The FT citing data from an aviation analytics company Cirium, shared that foreign airlines have been reluctant to return to Pakistan, with fewer total flights scheduled for March 2023 than the same month in 2019.

"If you can't take money out of a country, then there's no point in you even going there," said Mark Martin, chief executive of aviation consultancy Martin Consulting, in the FT report.

Latest News
CM Mamata Banerjee cancels Delhi visit today, suspense on NITI Aayog meet participation Thu, Jul 25, 2024, 03:06 PM
Thushara ruled out of Sri Lankaís T20Is against India; Madushanka named replacement Thu, Jul 25, 2024, 02:54 PM
Laura Delany to lead Ireland women for white-ball series vs SL Thu, Jul 25, 2024, 02:34 PM
India's medical devices industry to grow five-fold to $50 bn by 2030: DCGI Thu, Jul 25, 2024, 12:50 PM
Early cancer detection startup Navaux gets new funding Thu, Jul 25, 2024, 12:47 PM
Kerala priest found dead in church premises Thu, Jul 25, 2024, 12:43 PM
Iran's intelligence forces arrest 2 Islamic State ringleaders Thu, Jul 25, 2024, 12:38 PM
In a first, NASA sends 4K video to and from space via laser tech Thu, Jul 25, 2024, 12:22 PM
Armed groups taking toll on civilian life in Colombia: UN Thu, Jul 25, 2024, 12:10 PM
CBDT explains taxation of capital gains Thu, Jul 25, 2024, 11:48 AM
Trump calls Harris left lunatic at campaign rally Thu, Jul 25, 2024, 11:45 AM
Sensex trades lower on negative global cues Thu, Jul 25, 2024, 11:06 AM
Australia gear up for Test summer with Sheffield Shield showdown Thu, Jul 25, 2024, 11:04 AM
Wildfires rage across US; prompt evacuations, highway shutdown Thu, Jul 25, 2024, 11:03 AM
Over 4.25 lakh perform Amarnath Yatra in 26 days Thu, Jul 25, 2024, 11:00 AM