Aviation News Civil Aviation Authority PIA Shaheen Air

How CAA can shut down Shaheen Air for owing 1.34 billion but defer payment of Rs 96 billion owed by PIA indefinitely?

Shaheen Air's Airbus A330 and PIA Boeing 777 at Manchester airport.
Shaheen Air International and Pakistan International Airline's wide body aircraft at Manchester airport.

The Pakistan Civil Aviation Authority on Thursday informed a sub-committee of Public Accounts Committee (PAC) that the Pakistan International Airlines (PIA) owed Rs 96 billion to the CAA. The aviation secretary told the committee that the federal cabinet was striving to make the PIA a profitable organization, therefore, it had deferred the payment of Rs96 billion to the CAA, which the PIA would pay as soon as it becomes profitable.

Senator Sherry Rahman chaired the meeting as it reviewed CAA’s audit of 2014-15, which was conducted by the Auditor General of Pakistan (AGP). On the other hand, former director general CAA told the former chief justice on 3rd December 2018 that “Shaheen Air has yet to pay Rs1.34bn”. Now just compare 1.34 billion to 96 billion that are written off because the taxpayers like Shaheen Air will foot the bill.

Sherry Rehman said she would move a bill in the parliament to stop awarding supplementary grants to the departments. She also directed the CAA to hold meetings of its departmental accounts committee and present a report in this regard.

The audit officials informed the committee that cargo aeroplanes of US Air Force, National Atlantic Treaty Organization, collation forces and other foreign missions used Pakistani airports without paying any dues to the CAA. The PIA owed Rs6 billion to the CAA on this account.

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