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.


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Muhammad Khurram Oct 16, 2023 01:24pm
Now that seems reasonable.
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Abu Abdullah Oct 16, 2023 06:05pm
What a mess
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Ardl Oct 16, 2023 10:27pm
What's third Party's stake in this miserable deal? I hope PIA is privatized ASAP. It has become one of many other black spots onPakistan's reputation.
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Fatima Oct 17, 2023 12:28am
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Usman Oct 17, 2023 12:35am
Privatise pia.we don't need aeroplanes.
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Nasir Malik Oct 17, 2023 10:29am
Good Decision to buy the Plane. Government should put efforts to Restore the Uk and Europe routes For PK at least airline earn revenues due to non availability of these routes Gulf carriers earning Lot of revenues to carry our Passengers and cargo Business. Do not think in only one line To sell Pia there is a lot of potential to convert airline into Profits.
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Tauqir Ahmad Oct 17, 2023 12:15pm
We are always late in making decisions. PIA has become a white elephant like many other institutiojs and organisations due to political influence, nepotism, mismanagement and corruption. Why don't the PIA employees are to asked for thier recommendations to make PIA profitable? The employees should be offered ownership in form of shares which they can buy from monthly salary. PIA should match these shares as incentive. The ownership makes the employees more responsible and productive.
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