KARACHI: Civil Aviation Authority of Malaysia (CAAM) impounded a Pakistan International Airlines (PIA) aircraft at Kuala Lumpur International Airport on Tuesday. The impoundment of the aircraft, bearing the registration number BMH, comes as the leasing company seeks the recovery of $4.5 million in pending dues.
This is not the first time that a PIA aircraft has been seized in Malaysia due to a similar issue. In 2021, the same aircraft was impounded by Kuala Lumpur airport authorities, but it was subsequently released after diplomatic assurances regarding the payment of dues.
The latest seizure occurred following a legal petition filed by the leasing company in a Malaysian court, asserting the outstanding dues. The leasing company claims that PIA owes them $4.5 million, while the airline’s spokesman refuted this amount, stating that the actual payable sum is $1.8 million, which has already been paid.
PIA’s sudden change of destination decision perturbs passengers
According to the PIA spokesman, the impounded Boeing 777 aircraft is owned by the airline, with the leasing company owning only one of the engines installed on the plane.
PIA has engaged its legal team in Kuala Lumpur to actively contest the matter in court, strongly asserting that the claim submitted by the leasing company is incorrect.
In response, PIA swiftly arranged to repatriate its passengers and crew members on board the seized aircraft.
An alternate aircraft was employed to ensure their safe return. The airline spokesman reassured that the impounded airplane would resume operating as a normal commercial flight from Kuala Lumpur once the dispute is resolved.
The ongoing lease dispute between PIA and the leasing company has caused significant disruptions for the airline, further straining its financial challenges. The impoundment of the aircraft underscores the need for a swift resolution to the matter, as it affects the operations and reputation of PIA.
As the legal battle commences in the Malaysian court, PIA remains committed to vigorously defending its position, emphasizing that it has fulfilled its payment obligations to the leasing company, a PIA spokesman said.
Copyright Business Recorder, 2023