Pakistan International Airlines (PIA) has found itself in an embarrassing situation yet again, and this time it received a final warning from the Riyadh Airport Authority (RAA) for the non-payment of dues. This incident followed the detention of a Boeing B777 from its fleet at Kuala Lumpur Airport due to a leasing dispute.
The RAA delivered a letter to the PIA administration demanding payment of the six-month outstanding amount. The PIA has until 15 July to settle the 8.2 million Riyal balance that is owed for the charges and other services availed by the aircraft, according to the Saudi Arabian authorities.
The notice further emphasized the importance of fulfilling financial commitments on time and maintaining a clean record with the airport authority. The carrier’s winter flying schedule could potentially be affected if the deadline is not adhered to.
Additionally, the Jeddah Airport has warned PIA for failing to pay liabilities. The latter reportedly earned a warning from the General Authority of Civil Aviation (GACA) as well.
#BreakingNews: Saudi Arabia issues a final warning to Pakistan airlines; Riyadh Airport Authority issues warning regarding the non payment of dues
— News18 (@CNNnews18) July 14, 2023
Exclusive inputs by @manojkumargupta @AnchorAnandN brings in more updates | @aayeshavarma pic.twitter.com/SMqhuSkV4n
It is notable here that Pakistan has been facing a crippling economic crisis.
PIA aircraft seized at Malaysia airport
The non-payment of $4.5 million in debt led Malaysia to seize a Pakistani airliner in May this year. The passengers were left stranded when a Pakistan International Airlines Boeing 777 was seized at Kuala Lumpur International Airport in Malaysia. Later, a different aircraft was used to accommodate the flight’s passengers. The Southeast Asian nation had leased the aircraft to PIA with the registration number BMH.
Similarly, another Boeing 777 was impounded by Malaysian officials for two weeks in 2021 because of an identical issue. Afterward, with 173 passengers and crew members on board, it was released and brought back to Pakistan on 27 January of the same year after receiving a diplomatic guarantee from the country over the settlement of the obligation.
