Dubai-based company to provide $700 million credit facility for parts supply: PIA signs agreement

Dubai based Transworld Aviation FZE has provided a credit facility of up to $700 million, if required, to support national carrier Pakistan International Airlines (PIA) operations. This unique clause has been included in the agreement, which PIA has entered into with the company for the supply of spare parts worth $40 million, annually.
PIA Director, Procurement & Logistics, Khalid Iftikhar, in a letter sent on September 24 to Abdullah Khamas Al-Sulaimany, Chairman of Transworld Aviation FZE, Jebel Ali Free Zone, Dubai - UAE has acknowledged and confirmed that Pakistan International Airlines Corporation has appointed Transworld Aviation exclusively with first right of refusal for a period of five years for all services pertaining to normal supply of aviation spare parts and repair/overhaul management of rotables, consumable material, chemicals and life limited parts with aggregate value of not less than $40 million, annually.
The arrangement has caused a deep concern among the employees and insiders who consider this arrangement as an "endeavour to sell PIA". The company will also charge 10 percent mark-up on all payments made by PIA against the orders placed with the company. They have been bewildered with management's decision to switch over from the present system to the new system for buying spare parts.
The question mark is: why PIA is not willing to pay to approved sources already working with the airline since a long time, giving satisfactory service and support on discounted rates without any markup? According to information available here, the management of Transworld Aviation comprises Pakistani nationals. From where they would arrange $700 million to support PIA's operations needs to be answered by the management of the company?