Payment Dispute Between Pakistan CAA and Shaheen Air

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Abbas Ali
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Payment Dispute Between Pakistan CAA and Shaheen Air

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According to news sources, Pakistan Civil Aviation Authority (CAA) is considering withdrawal of boarding bridge facility at its airports for Shaheen Air aircraft over some payment dispute with the airline.

There's no disruption in Shaheen Air flight operations, according to airline's spokesperson

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Last edited by Abbas Ali on Wed Jul 11, 2018 11:31 am, edited 3 times in total.
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Re: Withdrawal of Boarding Bridge Facility to Shaheen Air Aircraft Being Considered Over Payment Dispute

Post by Abbas Ali »

CAA Suspends Bridge Service to SAI

KARACHI:
Pakistan Civil Aviation Authority (CAA) has suspended its bridge service to Shaheen Air International (SAI) Ltd. at Karachi, Lahore and Faisalabad airports over non-payment of around Rs. 540 million dues.

According to details, CAA has stopped providing its bridge service to SAI at three major airports - Karachi, Lahore and Faisalabad - till the recovery of pending dues accumulated to around Rs. 540 million.

Sources said that SAI instead of paying pending dues which was estimated to reach Rs. 540 million by the end of the current month, went to the court to avert the CAA recovering said amount however the court rejected its plea.

Moreover, they said that if the airline did not pay its pending dues, the authority may consider shutting its flight operations.

When contacted, Zohaib Hassan, Director Marketing SAI, said that airline kept in touch with CAA on routine payment and they had discussed the issue with the authority as well.

He also confirmed that all SAI operation and its flight schedule were being done as per routine; adding that "We are a law-abiding corporate entity and we are aware of our duties and responsibilities".

Source: Business Recorder (May 30, 2018)
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Re: Withdrawal of Boarding Bridge Facility to Shaheen Air Aircraft Being Considered Over Payment Dispute

Post by Abbas Ali »

According to news sources, CAA has threatened to suspend international flight operations of Shaheen Air in case the airline fails to pay due amount to the Pakistani aviation regulatory body.

Deadline of June 1 has been given by CAA to Shaheen Air for payment of dues.

Around five hundred forty million rupees are due to be paid by Shaheen Air to CAA.

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Re: Withdrawal of Boarding Bridge Facility to Shaheen Air Aircraft Being Considered Over Payment Dispute

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Shaheen Airline faces flight suspension if dues not paid

June 01, 2018

LAHORE -
Civil Aviation Authority (CAA) has warned Shaheen Air management to deposit its outstanding dues failing which its flight operation would be suspended from Friday onward.

A senior officer of CAA seeking anonymity said that operation services of the airline have already been suspended partially like Avio bridges are not being provided to the airline planes and passengers were being boarded by transporting them by buses to the planes. But on Thursday a verbal warning has been issued to the airline management to pay the dues to avoid any inconvenience.

Earlier Federal Board of Revenue (FBR) has also asked the CAA to suspend local flight operations of Shaheen Air for its failure to pay Federal Excise Duty (FED) amounting to millions of rupees. The FBR has also directed a bank to attach all the accounts of the company with immediate effect.

According to a letter sent to the CAA Director General, an amount of Rs 521.397 million is recoverable from the Shaheen Air International Limited under Federal Excise Act 2005. The Federal Excise Duty payable for the month of March, 2018 has not been paid up to due date which is 15-05-2018, the letter said.

Beside suspending the flight operations, the FBR has also directed a bank to attach accounts of the airline with immediate effect and also "keep all Pak Rupees Bank accounts attached" of the Shaheen Air till it pays the government dues. The spokesperson for the Shaheen Air International (SAI) was not available to comment upon the situation.

Source: The Nation
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Re: Withdrawal of Boarding Bridge Facility to Shaheen Air Aircraft Being Considered Over Payment Dispute

Post by adamalikhan »

CAA Pakistan really seem to be creating a tough time for SAI. If they suspend their operations, they will lose out on the revenue either way.

They have put obstacles in place by not allowing them routes. I think SAI has done really well with leasing planes but it is a real shame that they are slowly being returned due to the actions of CAA.

I don't condone SAI not paying their dues but feel they have been given a tough time unnecessarily.
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Re: Withdrawal of Boarding Bridge Facility to Shaheen Air Aircraft Being Considered Over Payment Dispute

Post by Abbas Ali »

According to news sources:

Pakistan CAA has suspended Shaheen Air international flight operations over non-payment of dues. Deadline of June 1 was given to the airline to clear dues.

Shaheen Air Islamabad to Dubai flight NL-221 will not be allowed to depart today.

https://www.flightradar24.com/data/flights/nl221

The CAA action will also prevent operation of Shaheen Air Dubai to Islamabad flight NL-224 on June 3.

https://www.flightradar24.com/data/flights/nl224

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Re: Pakistan CAA Suspends International Flight Operations of Shaheen Air

Post by Abbas Ali »

So far, no signs of Shaheen Air Islamabad to Dubai flight NL-221 departure.

Flight NL-221 was scheduled to depart from Islamabad at 10:30 PM.

https://www.flightradar24.com/data/flights/nl221

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Re: Pakistan CAA Suspends International Flight Operations of Shaheen Air

Post by adamalikhan »

Within the last hour Shaheen Air has posted on their FB that all services are operating as normal.
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Re: Pakistan CAA Suspends International Flight Operations of Shaheen Air

Post by Abbas Ali »

According to a reliable source:

Shaheen Air has already cancelled a number of flights to the gulf due to poor loads in the holy month of Ramadan. So, the news report claiming that CAA is holding airline's flight NL-221 is false. Temporarily shut down gulf routes will restart from June 10.

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Re: Pakistan CAA Suspends International Flight Operations of Shaheen Air

Post by ame.330 »

absolutely right abbas its jus due to poor load
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Re: Pakistan CAA Suspends International Flight Operations of Shaheen Air

Post by ame.330 »

nl221 is airborne now
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Re: Withdrawal of Boarding Bridge Facility to Shaheen Air Aircraft Being Considered Over Payment Dispute

Post by Abbas Ali »

^ Thank you for the info.

Shaheen Air Airbus A320 (AP-BLJ) arrived in Islamabad at 7:47 PM as flight NL-706 from Medina.

AP-BLJ departed from Islamabad at 12:17 AM as flight NL-221 to Dubai. The flight's scheduled departure time was 10:30 PM.

https://www.flightradar24.com/data/aircraft/ap-blj

BTW, Express News channel was reporting suspension of Shaheen Air international flight operations.

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Re: Withdrawal of Boarding Bridge Facility to Shaheen Air Aircraft Being Considered Over Payment Dispute

Post by ame.330 »

media #-o
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Re: Withdrawal of Boarding Bridge Facility to Shaheen Air Aircraft Being Considered Over Payment Dispute

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According to following news report, initially Pakistan CAA did not allow Shaheen Air to operate Islamabad to Dubai flight NL-221 on June 2 but later allowed it for the sake of passengers.

CAA suspends Shaheen Air flight operation

LAHORE
- Civil Aviation Authority (CAA) could not provide relief to hundreds of stranded Ummrah pilgrims after suspending flight operation of Shaheen Air on Saturday at different airports.

The CAA had been issuing warnings to Shaheen Air management for last few years to clear its dues amounting to Rs540 millions but to no avail.

A senior officer of CAA seeking anonymity said that operation services of the airline had already been suspended partially. The bridge service was not being provided to the airline planes and passengers were being boarded by transporting them by buses to the planes. A verbal warning was issued to the airline management to pay the dues to avoid any inconvenience.

On Saturday due to suspension of operations, Shaheen Air flights from Islamabad to Dubai and Dubai to Islamabad were not allowed to take off. CAA Director Air Transport, Syed Muzafar Alam had issued warning letter to the CAA in which Shaheen Air management was given a deadline of June 01 to clear its dues otherwise on June 02 flight operation could be suspended.

There were reports from Karachi that CAA, keeping in view the problems faced by passengers, allowed late on Saturday night the Shaheen Airline flights NL-221 and NL-224 to resume their operation.


Earlier Federal Board of Revenue (FBR) had asked the CAA to suspend local flight operations of Shaheen Air for its failure to pay federal excise duty (FED) amounting to millions of rupees. The FBR had also directed a bank to attach all the accounts of the company with immediate effect.

According to a letter sent to the CAA director general, an amount of Rs541.39 million was recoverable from the Shaheen Air International Limited under Federal Excise Act 2005. The federal excise duty payable for the month of March 2018 had not been paid up to due date which was 15th March, the letter said.

Besides halting the flight operations, the FBR had also directed a bank to attach accounts of the airline with immediate effect and also "keep all Pak Rupees bank accounts attached" of the Shaheen Air till it pays the government dues.

Source: The Nation

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Re: Withdrawal of Boarding Bridge Facility to Shaheen Air Aircraft Being Considered Over Payment Dispute

Post by Abbas Ali »

According to May 30, 2018, Pakistan CAA document/letter shown on Lahore News channel:

Shaheen Air International (SAI) is requested to immediately pay the outstanding aeronautical dues amounting to PKR 543,160,067/- in order to ensure continuity of its services.

In case of non-payment of aforementioned outstanding dues, CAA will withdraw its services from the approved sector of SAI for flight numbers NL221/NL224 on every Saturday effective 2nd June 2018.

SAI is requested to pay the outstanding amount latest by 1st June 2018 to ensure uninterrupted CAA services in support of all SAI approved sectors/air routes

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