Payment Dispute Between Pakistan CAA and Shaheen Air

[AKL]

I've been seeing their only remaining A330 parked at Shaheen Hangar for a few days now.

[Abbas Ali]

Sehbai Brothers Flee With Rs16bln Tax Payers’ Money

By Nasir Mahmood

KARACHI: The owners of Shaheen Air International have reportedly fled from the country without clearing billions of rupees dues and the revenue of national exchequer.

Informed sources disclosed to ‘National Courier’ that Sehbai brothers i.e., Kashif Sehbai and Ehsan Sehbai of Shaheen Air have fled from the country despite their names on ECL. The Civil Aviation Authority of Pakistan had already suspected through its letter dated 4th September addressed to Aviation Division and Ministry of Interior that the owners of Shaheen Air will flee from Pakistan without paying Rs.1.3 Billion tax payers’ money but the Government failed to take any action against the powerful and corrupt Sehbai brothers.

In spite of placing the names of Kashif Sehbai and Ehsan Sehbai on Exit Control List, the black sheep of FIA and Airport authorities who had been entertained in lavish night parties at the “Crew Hut” helped Sehbai brothers to flee from the country, the sources claimed. Sources further disclosed that on September 14, 2018 the Leaser took away one more A330-200 aircraft of Shaheen Air registration AP-BML due to mis-commitments of payment by Shaheen Air, leaving the airline to operate with only one aircraft, which is a very serious safety hazard under the law. Following this event most of the senior management in engineering department have submitted their resignations.

Employees from Engineering and Flight Operations who have not been paid salaries for last three months have started protesting outside Shaheen Air office frequently.

However, the Director HR (Imran Aziz) keeps releasing fake promises of issuing salaries after a week to calm down situation. Media is not allowed to enter Shaheen Air offices to cover the protest of the unpaid employees.

The PCAA on a soft corner due to Hajj, have allowed Shaheen Air to continue their illegal flight operations for Hajj with only one aircraft till September 30, 2018. The airline has been clearly notified to completely shut down its operations local and international. The CAA Pakistan has also notified the passengers and travel agents the same through advertisement in newspapers.

The total liabilities of Shaheen Air have piled up to 16 Billion rupees which include payment of CAA, FBR, Local and international Fuel companies, international Airports, local and international Hotels and a long list of vendors. It is reported that many small vendors had to shut down their business due to non-payments from Shaheen Air. The FBR may soon arrest close aides of Kashif and Ehsan including senior management of Shaheen Air for interrogation on the corruption and money laundering of billions of rupees, the sources added.

Source: National Courier

[Abbas Ali]

Supreme Court of Pakistan has ordered Shaheen Air to deposit compensation of twenty million rupees for passengers who were stranded in China for a number of days in July/August.

PKR 50,000/- to be paid to each passenger stranded for one day.

PKR 125,000/- to be paid to each passenger stranded for three days.

PKR 150,000/- to be paid to each passenger stranded for six days.

Compensation money to be deposited at Supreme Court Registrar office within ten day.

The lawyer representing the airline informed the Supreme Court that airline already has deposited seventeen million. The court remarked that then the compensation money should be increased from twenty million.

Abbas

[inducedrag]

https://nationalcourier.pk/back-page/sh ... tive-path/

KARACHI: The aviation circles have expressed their concern over the suspicious attitude of law enforcement agencies and officials of the Government Aviation Division regarding malfunctioning by management of Shaheen Air International (SAI).

Informed sources have disclosed that M/s Aercap Ireland Limited, the Lessor of the A-319 and A320 Airbus aircraft, had already served the contract termination notices of its aircraft to Shaheen Air International. On the other hand management of the airline is busy in online bookings and collecting cash from ignorant passengers through its Karachi office.

Moreover, employees of the SAI have been assured that there would be a new CEO joining the airline on 5th October, while their dues would be cleared on 15th October, sources claimed.

The sources further stated that there were 18 aircraft in use by the airline about two months back, but out of those, 17 aircraft are already taken out of Pakistan till now by lessor. The last Airbus APBMI A-330-200 model is awaiting at Lahore airport to be taken away by the lessor on 1st October. Without even a single aircraft, how the airline could operate its flights? This big question has made aviation observers to a conclusion that management of the airline is misleading that general people as well as its employees that it was very much active while the fact is that its owners have already fled the country, being Canadian nationals, along with their families.

[inducedrag]

Shaheen Air
From the NewspaperSeptember 30, 2018 Facebook Count
0
Twitter Share
0
SINCE its inception almost two decades ago, Shaheen Air had been doing well. Until about a year and a half ago it had a fleet of aircraft rivalling that of Pakistan International Airlines and had expanded its operations to Europe and the Far East with modern Airbus airliners,

In the last 10 months, the airline’s operations started slowing down until it finally came to a halt — an entire fleet was reduced to a single aircraft.

The airline’s infrastructure, technical and non-technical staff have not been paid for three months. The airline owes millions to the support staff and services.

Unless there’s a miracle, the airline will have to file for bankruptcy or shut down. Once the airline goes under water almost 5,000 employees will be jobless. This includes about 60 ground engineers and technicians, around 200 pilots and 600 trained members of the cabin crew.

How did they get here?

First of all, the airline industry is currently not doing well in Pakistan. Government taxes and excise duty on airline revenues are exorbitant in Pakistan when you compare it with other countries in Asia and Gulf.

This leaves the airline with little room to bear losses or expand and as a result all airlines operating in Pakistan are running in a loss.

If the government closes PIA tomorrow, it will save around Rs100 million daily.

The external factors are the advent of the Gulf carriers. It is unfair competition. These carriers have several of the latest aircraft and plenty of cash backup. To compete with them with fewer and older aircraft is an uphill task.

In the end I would like to point out that the collapse of Shaheen Air will be the biggest aviation disaster in the country’s history. Not only will 5,000 families lose their bread and butter, confidence in airline business will be shattered and cause irreparable damage to the development of aviation sector.

With regard to the airline business, the government should play its role and offer some relief which will benefit the country later. After all the US government came to the rescue of companies like Boeing and General Motors when they were in trouble.

Qasim Khan

Shaheen Air pilot

Karachi

Published in Dawn, September 30th, 2018

[Abbas Ali]

According to news sources:

Shaheen Air flight operations have been closed by Pakistan CAA. The airline's Regular Public Transport (RPT) renewed for one month for transporting Hajis from Saudi Arabia to Pakistan expired on September 30.

Federal Board of Revenue (FBR) also has frozen bank accounts of Shaheen Air.

Shaheen Air is taking steps to get RPT renewed within this week, according to airline's spokesperson.

Due to non-payment of dues, facilities at Pakistan CAA airports like boarding bridges are no longer available to the airline. Air navigation services provided by Pakistan CAA are also made unavailable to Shaheen Air.

Abbas

[Abbas Ali]

According to news sources:

Thousands of Shaheen Air employees have not received salary since past four months.

The low ranked employees of the airline are going through severe financial crisis.

Majority of around 6,500 employees have not received salary.

The airline was doing well till April 2018 and increase in employees salary was announced.

Suddenly from June 2018 situation at the airline began to deteriorate.

Nearly all leased aircraft of the airline have been returned

And, now since past four months the employees have not received salary.

Abbas

[Abbas Ali]

October 23, 2018, Pakistan Civil Aviation Authority (CAA) letter addressed to Chief Executive Officer (CEO) Shaheen Air International (SAI) Ehsan Khalid Sehbai.

Payment of CAA's outstanding dues by M/s Shaheen Air International

M/s SAI is hereby directed to settle the outstanding dues of CAA which has accrued to the tune of Rs. 1.435 billion as on 15th October 2018. Outstanding dues to be paid to CAA by 26th October 2018 positively.

In case of non-compliance, CAA shall file an application to honourable Sindh High Court for appointment of an administrator under national law for recovery of above stated dues.



Abbas

[inducedrag]

https://tribune.com.pk/story/1834048/2- ... ead-wings/

[Abbas Ali]

Civil Aviation Authority (CAA) has sealed Shaheen Air International’s (SAI) offices at Jinnah Terminal and other parts of Karachi airport. The authority has also issued a demand to pay Rs. 30.2 million as pending rent for these premises.

https://propakistani.pk/2018/11/01/caa- ... on-notice/

Abbas

[Abbas Ali]

According to news sources:

Shaheen Air offices all over Pakistan have been sealed.

The airline has failed to pay salary to employees since past five months.

Abbas

[adamalikhan]

Once again - really sad to see the end of Shaheen

The CEO did say in his interview with Mubasher Lucman that if things [unfair treatment from CAA] continued then they will stop operating within 2 months. This interview was several months ago.

CAA is the biggest loser here; they are now not earning anything from Shaheen, have the default amount and next the employees who will feel the most severe impact.

[ammad]

Once again - really sad to see the end of Shaheen

The CEO did say in his interview with Mubasher Lucman that if things [unfair treatment from CAA] continued then they will stop operating within 2 months. This interview was several months ago.

CAA is the biggest loser here; they are now not earning anything from Shaheen, have the default amount and next the employees who will feel the most severe impact.

And worst part is that same CAA bend to accept most of the demands of ME3.

[Abbas Ali]

According to news sources:



In a letter dated December 28, 2018, Pakistan Civil Aviation Authority (CAA) has responded to a letter dated December 20, 2018, by Shaheen Air CEO Javed Karim Sehbai that sought facilitation/cooperation for the resumption of airline's flight operations.

Pakistan CAA in its reply to Shaheen Air management has made it clear that resumption of airline's flight operations is subject to payment of CAA dues and return of airline's management i.e. CEO/Director for resolution of their liabilities.

CAA has directed Shaheen Air management to go through the process of court cases, Federal Investigation Agency (FIA), National Accountability Bureau (NAB) etc. after which CAA would be in a position to consider extending relief within the ambit of its rules and regulations.

Pakistan CAA also does not recognizes Mr. Javed Karim Sehbai as Acting CEO of Shaheen Air International because CAA has not received any notification or Securities and Exchange Commission of Pakistan (SECP) certification in this regard. CAA accepts Mr. Javed Karim Sehbai as a Director Shaheen Air International.

Abbas