KARACHI, May 23: Domestic and international flight operations of the two private airlines remained suspended on Tuesday as negotiations between the Civil Aviation Authority and the airlines’ managements on the issue of payment of outstanding dues continued without any head way.

The CAA had banned on Monday operations of Aero Asia and Shaheen Airways for non-payment of outstanding dues during the last two months.

According to the CAA, Aero Asia and Shaheen Airways are liable to pay Rs88 million and Rs56 million respectively.

Aero Asia’s director of aviation services, Air-Vice Marshal (Retd) Abid Rao, told Dawn that he held hours long meeting with the CAA authorities to resolve the issue. However, no decision could be reached, he said.AVM Rao said the Aero Asia had disputed the amount of dues in the meeting. “We will take up the issue to the higher-ups of the ministry of defence as the CAA is sticking to its stance,” he added.

The director of aviation services said the Aero Asia, in fact, never defaulted on payment of dues. “The CAA gives 45 days to PIA to clear their dues, while the private sector airlines are given only 15 days time”, he said.

AVM Rao said the CAA’s claims of Rs88 million against the airlines also included late surcharge of Rs10 million. “We demand equal treatment to all airlines”.

He said the airline had started refunding money to the booked passengers due to suspension of flight operations.

Shaheen Air spokesman Farooq Nasir Khan said the airline had made a partial payment to the CAA and it would resume its operations from Wednesday. “Our Vice Chairman Pervaiz Khan held a meeting with the top management of the CAA and we have been granted permission to resume operations”, he added.