PIA and Aviation Industry Face Losses Over Rs. 450 Billion Due to European Travel Restrictions
Pakistan International Airlines (PIA) and the broader aviation industry have collectively endured financial losses exceeding Rs. 450 billion over the past four and a half years due to travel restrictions imposed by European authorities.
According to Privatization Commission sources, PIA alone has incurred approximately Rs. 220 billion in losses. Meanwhile, the Pakistan Civil Aviation Authority (CAA) has reported industry-wide losses of around Rs. 250 billion, primarily caused by the suspension of Pakistani carriers’ operations across EU airspace.
Read More: New European Airline Considers Direct Pakistan-Italy Flights
The recent restoration of European routes is being hailed as a significant development, especially in the context of PIA’s ongoing privatization efforts. This week, the European Aviation Safety Agency (EASA) officially lifted its suspension on PIA’s flight operations. Additionally, CAA Director General Nadir Shafi Dar confirmed that Third Country Operator (TCO) authorization has been granted to Airblue.
Looking ahead, there are plans to restore UK routes as well, with efforts focused on reinstating PIA’s operational status prior to the airline’s privatization.
Ongoing negotiations for PIA’s privatization are being conducted under a government-to-government (G2G) agreement, according to sources.
