PIA, Indonesian leasing company finalise deal on custody of two planes

ISLAMABAD: An agreement between the Indonesian company and Pakistan International Airline (PIA) has been finalized regarding custody of two PIA planes due to non-payment of lease amount.

According to sources, both the aircraft – Airbus 320 - will soon join the PIA fleet.

Earlier, PIA had decided to buy the two planes instead of paying lease payment. In this regard, a four-member committee arrived in Kuala Lumpur to negotiate with the leasing company to take over the aircraft.

The four-member committee was consisted of Secretary Aviation; CEO PIA retired Vice Air Marshal Mohammad Amir Hayat, Chief Engineer Amir and Deputy Engineer.

The leasing company did not extend the lease of these airplanes due to non-payment of dues in 2021 and PIA had to pay the parking fee of the planes to the leasing company due to non-regular returns.

Sources revealed that the monthly parking fee of both airplanes is $0.6 million per month which has been pending for two years.

The payment of fines and dues exceeded the original value of the planes that is why PIA had to decide to buy the aircraft instead of paying all dues but the deal failed due to lack of funds with PIA.

The leasing company agreed to negotiate with PIA in Kuala Lumpur on the inclusion of third party. According to PIA spokesperson, both airplanes are worth $30 million and as soon the planes’ deal is finalized, an engineering team will audit the planes and money will be paid and the planes will be handed over to PIA.