Saudi Prince’s Refusal To Inject More Funds Into A Pakistani Private Airline Renders 5,500 Employees Jobless
Pakistan faces aviation crisis as another private airline calls is it a day. Shaheen Air International (SAI) is going to announce shutdown as a Saudi prince refused to pump in more funds, rendering 5,500 employees jobless.
“Shaheen Air has not announced any precise closure but its offices have been shut for the past two weeks,” Shaheen Air International Chief Marketing Officer Zohaib Hassan told Express Tribune. “We are waiting for the resumption of work.”
The Saudi prince, who was previously willing to enter into an investment deal, withdrew after he heard about the cases against the airline, said another Shaheen Air employee on the condition of anonymity.
“When you come to know that offices of the business, you are going to invest in, are sealed by the authorities, you know the authorities are not happy, you wouldn’t want to mess with them,” he said.
The airline plunged into crisis in April 2018 when it defaulted on payments of taxes and fee to the Federal Board of Revenue and Civil Aviation Authority (CAA) amounting to Rs3.1 billion.
The airline also owes billions of rupees to hotels, catering services, ground-handling companies, fuel suppliers, banks and lessors – companies which provide aircraft on lease.
The airline’s operating licence and fitness certificates for its aircraft and crew have expired, which is why it has shut down without any declaration. AerCap Ireland, the lessor of Shaheen Air’s eight aircraft, has taken back its airplanes through the Ireland embassy.
Shaheen Air initially had a fleet of about 16 airplanes, which first decreased to half and then completely vanished.
It employed about 4,000 people directly and 1,500 indirectly, creating a wave of unemployment in the aviation industry.
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