08 February 2005	Tuesday	28 Zilhaj 1425

ISLAMABAD, Feb 7: The defence ministry has intervened to ensure payment of Rs3.859 billion owed by the national carrier (PIA) and other airlines to the Civil Aviation Authority (CAA), officials told Dawn.

According to information furnished by the defence ministry to the Senate, PIA was the single largest defaulter of the CAA to the tune of Rs2.917 billion, while six other airlines owed Rs942.5 million to the CAA.

According to the defence ministry, the airlines owed the following amounts to the CAA: PIA (Rs2.917 billion); Aero Asia (Rs365.95 million); Shaheen Air International (Rs433.558 million); Bhoja Air (Rs81 million); Hajveri Airline (Rs40 million); Raji Air (Rs12 million); and Safe Air (Rs10 million).

Official documents showed that the defence ministry had initiated appropriate administrative and legal action to recover the dues. On the request of the CAA, a series of meetings was convened in the ministry.

According to the ministry, for repayment of the outstanding dues by PIA, license agreements were executed with the CAA, books were being reconciled and the outstanding dues of Rs550 million have been recovered so far.

PIA's internal audit reports show that the CAA was claiming an amount of approximately Rs3 billion from the airline for which a reconciliation and settlement exercise had been initiated by the defence ministry. Several meetings of the committee for resolution of disputes between the PIA and the CAA have been held.

Documents show that the CAA has informed PIA that in case of rent and allied charges, a joint survey and measurement of 29 locations had been completed. Moreover, PIA's own documents show that CAA claimed an amount of Rs472 million from PIA on account of license agreements alone.

Defence ministry officials said Aero Asia and Shaheen Air were paying their current dues in instalments of Rs750,000 per month against.

The monthly instalments of the two airlines would increase after three years so as to adjust the entire outstanding amount in the next 15 years.

The two airlines were allowed by the ministry of defence to pay their outstanding dues in easy instalments.

According to the defence ministry, recovery suits have been filed in respect of the defunct Bhoja Air, Hajveri Airline and Safe Air. One aircraft and land of Raji Air has also been pledged to recover the dues.