PSO May Suspend Fuel Supply to PIA ATR Flights

Discuss issues and news related to PIA, Pakistani airlines and Pakistan's civil & military aviation.
User avatar
Abbas Ali
Site Admin
Posts: 52155
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan

PSO May Suspend Fuel Supply to PIA ATR Flights

Post by Abbas Ali »

According to news sources, Pakistan State Oil (PSO) may suspend fuel supply to PIA ATR 42-500 turboprop aircraft flights due to non-payment of bills by the airline.

More than twelve billion rupees are due to be paid by PIA to PSO.

PSO may consider suspending fuel supply to larger PIA aircraft also in case of further delay in payments.

Abbas
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
User avatar
Abbas Ali
Site Admin
Posts: 52155
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan

Re: PSO May Suspend Fuel Supply to PIA ATR Flights

Post by Abbas Ali »

Payment of two billion rupees to PSO by PIA by tomorrow has been assured by airline's managing director, according to latest reports.

Abbas
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
flyeconomy
Registered Member
Posts: 64
Joined: Sat Nov 08, 2014 10:11 pm
Location: Toronto

Re: PSO May Suspend Fuel Supply to PIA ATR Flights

Post by flyeconomy »

this seems to be a frequently recurring thing now with regards to non-payments from PIA to other related companies.
Every time someone threatens to do something the MD has to step in to "negotiate", seems that's all the MD does these days is to negotiate payment terms as soon as some company decides to ask for payments
User avatar
Abbas Ali
Site Admin
Posts: 52155
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan

Re: PSO May Suspend Fuel Supply to PIA ATR Flights

Post by Abbas Ali »

PSO to run PIA dry if it doesn’t pay Rs 2b today!

Karachi

ISMAIL DILWAR


At least 35 aircraft of the Pakistan International Airlines (PIA) will be grounded if the national flag-carrier fails to pay at least Rs 2 billion to the Pakistan State Oil (PSO) by 5pm today (Tuesday).

The PSO had set November 17 as the deadline for PIA to pay its dues amounting to Rs 12 billion on account of fuel supplies.

According to a PSO spokesman, the oil giant’s outstanding dues had been piling up for the last couple of years. “PIA’s receivables towards PSO for the supply of jet fuel have risen to more than Rs 12.1 billion over the last 1.5 to 2 years,” said the spokesman.

The PIA had committed to paying dues after “PSO warned the airlines of halting its fuel supplies to its ATR flights” –short haul domestic flights/turbo propeller planes– from Monday, the spokesman told Pakistan Today.

Following PSO’s warning, the PIA managing director had committed paying Rs 2 billion out of the outstanding amount of Rs 12 billion to PSO by Tuesday (today), he added. Based on this assurance, the PSO had decided to continue fuelling PIA flights.

Asked about the future course of action, the spokesman said, “PSO will review the payment situation on Tuesday (today) at 5pm and then take steps accordingly. We are holding suspension based on their commitment to pay. If PSO receives the payment, it will go towards making payments to the suppliers.”

A stoppage of fuel supplies, the sources said, would first impact PIA’s domestic flights and then the international ones.

Moreover, the PSO spokesman said that despite PIA’s perpetual payment default, the PSO had continued uninterrupted fuel supplies to it. In this regard, a meeting, attended by managing directors of the PIA and PSO, was also held at the Ministry of Petroleum and Natural Resources on November 6.

“During the meeting it was explicitly communicated that PSO would not be able to continue uninterrupted fuel supplies in case of non-payment by PIA,” the spokesman said. However, he claimed that no positive steps were taken by the PIA management to clear the outstanding balance.

On the other side, PIA spokesman Rafique Zardari confirmed that PIA’s top management had committed a partial payment. However, he denied reports that the PSO had cut fuel supplies.

Zardari said that the national flag-carrier’s fleet comprised 35 planes and no fuel supplies’ disconnection had been made to them. He added that the PSO had asked PIA to make the payment that was pledged.

Source: Pakistan Today
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
User avatar
Abbas Ali
Site Admin
Posts: 52155
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan

Re: PSO May Suspend Fuel Supply to PIA ATR Flights

Post by Abbas Ali »

PSO will receive due payments from PIA in installments under an agreement reached between the two sides according to a local newspaper report.

Abbas
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
User avatar
Abbas Ali
Site Admin
Posts: 52155
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan

Re: PSO May Suspend Fuel Supply to PIA ATR Flights

Post by Abbas Ali »

PSO has reduced or suspended jet fuel supply to PIA. Talks are being held with PSO for restoration of fuel supply, according to airline's spokesman.

The suspension of fuel supply has not disrupted PIA flights operation as the airline made alternate arrangement to get fuel.

Twelve billion rupees are due to be paid by PIA to PSO.

PIA has made an immediate payment of 600 million rupees to PSO.

Abbas
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
User avatar
Abbas Ali
Site Admin
Posts: 52155
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan

Re: PSO May Suspend Fuel Supply to PIA ATR Flights

Post by Abbas Ali »

PSO receivables from PIA stand at Rs12.7 billion

Friday, December 05, 2014

KARACHI:
Pakistan State Oil (PSO) on Thursday said the current outstanding receivables status of PIA stands at Rs12.7 billion rather than Rs11 billion as quoted in The News.

“Despite continual default on payments by PIA; PSO has been continuing to supply fuel to the airline. However, now PSO has run out of jet fuel stocks due to non-provision of jet fuel from local refineries on credit terms. Due to this, PSO has been unable to supply jet fuel to PIA in the past two days,” the oil marketing firm said.

Source: The News
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
User avatar
Abbas Ali
Site Admin
Posts: 52155
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan

Re: PSO May Suspend Fuel Supply to PIA ATR Flights

Post by Abbas Ali »

According to news sources:

PSO has issued final notice to PIA and given deadline of December 11 to recover due jet fuel bills from the airline.

A total of twelve billion one hundred sixty million rupees are due to be paid by PIA to PSO.

PSO will suspend jet fuel supply to PIA in case the airline fails to pay due bills before the deadline.

Abbas
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
User avatar
Abbas Ali
Site Admin
Posts: 52155
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan

Re: PSO May Suspend Fuel Supply to PIA ATR Flights

Post by Abbas Ali »

According to news sources:

PSO suspended jet fuel supply to PIA after the end of today's deadline at 11:00 AM.

PIA has made arrangements to get jet fuel from other suppliers to continue flight operations.

PIA is required to make payment within seven days of jet fuel supply under an agreement signed with PSO in 2002.

Abbas
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
User avatar
Abbas Ali
Site Admin
Posts: 52155
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan

Re: PSO May Suspend Fuel Supply to PIA ATR Flights

Post by Abbas Ali »

According to a PIA spokesperson, PSO has not suspended jet fuel supply to PIA and there's not disruption in airline's flight operations.

PIA is getting normal supply of jet fuel from PSO.

Abbas
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image