Business

Shaheen Air’s operations have been stopped because it can’t pay its debts

All operations of Shaheen Air have been stopped in the country. This includes both domestic and international flights.

Pakistan’s largest private airline has defaulted on the billions it owes to the CAA and FBR. It owes Rs1.5 billion to the FBR and Rs1.4 billion to the CAA.

The CAA had earlier allowed Shaheen Air to operate its Hajj flights to Saudi Arabia till September 30. As of October 1, the agreement was void.

The domestic operations of the airline had already been stopped earlier.

The airline says that it is in contact with both the CAA and FBR for extensions.

Shaheen Air’s flight operation license has also expired and if the CAA doesn’t renew it, the airline can’t operate. The airline’s officials say they are working to have it renewed.

The airline’s bank accounts have also been frozen. If the airline cannot get an extension, it will have to ask for loans to repay its debts, however, banks may not be willing to extend such a large loan to the airline.

According to sources in the airline, employees have not been paid salaries for two months because of the suspension of its operations.

 

 

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