Shaheen Air and CAA in a dispute over Rs1.5 billion non-payment dues – Research Snipers

Shaheen Air and CAA in a dispute over Rs1.5 billion non-payment dues

The dispute between Shaheen Air International (SAI) and the Civil Aviation Authority (CAA) gets dubious over the non-payment by SAI and partial suspension of flight operations by CAA.

The Civil Aviation Authority (CAA) the aviation regulator had announced the partial suspension of SAI routes from and to Saudi Arabia due to non-payment of Rs1.5 billion, the suspension of flight operations took effect from Monday, however, the Sindh high court (SHC) suspended the CAA order on Monday evening, said SAI in a press release.

When contacted the spokesperson of CAA, Pervez George denied the suspension of SAI operations of domestic and Saudi Arabian flights. The only flight operations suspended were domestic excluding Saudi Arabia, because of the non-payment issue of Rs1.5 billion, the suspension started from July 16, 2018—Dawn reported.

CAA served notice to SAI and through media prior to suspension in order to let customers know in advance and avoid any inconvenience, and the CAA has not received any hajj flights schedule from SAI, he added.

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On the other hand, representative of SAI Zohaib Hassan told reporters that CAA served a notice to SAI on July 13 which threatened the international flight operations of SAI except Saudi Arabia, but SAI took the matter in Sindh High Court where the CAA’s order was suspended, the order was also against the CAA’s own laws breaching patent, Rule 373 of CAA Rules 1994.

CAA has taken the discriminatory action against SAI while SAI arrears were only the 2 percent of other local airlines, he added. The SAI spokesperson has also denied the rumors about the company facing financial difficulties, the company has just received a batch of 6 aircraft from Jordanian Airlines and the company is making payments regularly to all creditors without any financial turmoil, he said.

However, FBR and CAA payments are in dispute, there are market rumors that SAI might be looking for a buyer, there is no such thing that SAI is seeking to sell its business, SAI is still a profitable business which is not being sold to anyone, he added.