Acquisition of two planes on wet lease criticised: Palpa opposes move

The Pakistan Airline Pilots' Association (Palpa) has expressed "shock and dismay" over what it described "unjustified acquiring of two A-320s on wet-lease" by PIA management.
In a letter sent to the Managing Director of PIA on February 3, Palpa President Captain Suhail Baluch said that "the decision is shocking" because the "management has secretly decided to as soon as possible (ASAP) acquire two (02) A-320 aircraft on wet lease" and has also started processing documents of 52 Cockpit Crew, 77 Cabin Crew, 26 Aircraft Technicians, 06 Dispatchers and 01 Aircraft Engineer of FREE BIRD Airlines of Turkey for endorsement by Civil Aviation Authority (CAA) and clearance by Intelligence Bureau (IB).
"It is only logical that available resources including PIA's own fleet and crew are utilised and the management realises that in the given financial condition, PIAC cannot afford such adventurism," he said.
Captain Baluch said that Palpa, after considering all pros and cons, is "confident that management's above decision is not in the interest of the airline; it is rather disastrous. Time and again we have made the management understand the repercussions of taking aircraft on wet lease and on agreeing with us management had retracted their decision regarding wet lease aircraft."
In this context, he highlighted the following sequence of events to fortify Palpa's stand. On November 4, 2011 it submitted a letter enumerating the following: The above chart shows that management spent a minimum $8.445 million on acquiring two B-747s on wet lease for Hajj. Had the management spent $1.5 million on own engines, own aircraft would have become operational. This does not include the money paid to the under-utilised staff of PIA.
On December 27, 2011 a letter was written to Hafeez Shaikh, Minister of Finance, as it was reported that he would head a task force to resolve the problems of national institutions including PIAC. It was stressed that it was of great urgency that PIA is stopped from acquiring aircraft on wet lease and to direct that PIAC own fleet of aircraft be made airworthy.
Captain Baluch said there are about twelve (12) aircraft grounded--06 A-310s, 02 B-737s, 02 B-747s, 01 B-777 & 01 ATR--for want of spare parts. The acquiring of spare parts has been made a cumbersome process as the same is dealt with a Dubai-based company in the pattern of a cartel. The reason the Dubai-based firm was introduced was that spare parts would be supplied on credit, whereas such decisions have also become counter-productive as, despite payment of exorbitant amounts in advance, the firm has not been able to deliver.
It is ironical; he said, that 160 foreign crew and ground staff would be utilised in place of PIA's own crew who would be paid guaranteed flying allowance. Past experience shows that despite paying heavy lease amounts, PIAC had to bear additional maintenance charges. There are instances when PIA had used its own engines and landing gear on wet lease aircraft.
"Please appreciate that PIAC has neither the finances to pay such lease amount and interest/mark-up and, if the plan goes through, then PIA will never be able to recover from its poor financial condition". He earnestly requested the Managing Director to drop the idea of acquiring aircraft on wet lease and make all possible efforts to make the grounded aircraft airworthy. "We see no reason for PIAC's own fleet of aircraft being grounded. Apparently, it is done to justify acquiring aircraft on wet lease," he said. "Does anyone has an answer as to why our aircraft are not being made airworthy? Can we not spend fraction of the amount to be spent on wet lease aircraft on our own aircraft and make them airworthy?" he asked.
"We seriously suspect foul play and probably you have been wrongly briefed on the issue. We immediately request for an audience so as to convince you, and till such time, please do not take further steps in acquiring the wet lease aircraft. Nevertheless, we make it clear to you that you will face our forceful opposition if actions against the interests of PIAC and our membership are taken," Captain Baluch warned.

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02 (TWO) B-747'S ON WET LEASE FROM HELLENIC IMPERIAL AIRWAYS

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                      S. No   Details    US$ Million

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01       SX-TIE 400 hours guaranteed @ US$ 6,500/-                     2.6/-

02       SX-TIC 600 hours guaranteed Cockpit @ US$ 7,500/-.            4.5/-

03       Crew / Ground Engineers + Cabin Crew Coordinator/Others     0.645/-

04       130 Rooms for Greek crew in Ramada/Marriott Hotel

         @ US$ 90/- per day for 60 days (Approx).                      0.7/-

         Total                                                       8.445/-

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