Pakistan International Airlines (PIA) has been given a further lifeline with another $53.6 million in funds in the form of government guarantee. The Pakistan's Economic Coordination Committee (EEC) recently approved increasing the government guarantee for PIA.
PIA had already secured government guarantees worth $887 million. With these funds already utilised, the cash-strapped airline had requested for additional guarantees to secure further loans to keep the airline running.
To make matters worse, Saudi Arabia's General Authority of Civil Aviation has sent a legal notice to PIA regarding unpaid airport fees and has threatened to suspend landing rights. The loss of landing rights in Saudi Arabia would be a major setback for PIA as the region is a major market for PIA with the airline offering 45,000 weekly seats on 24 different routes.
Further lifeline for PIA
