PIA pays $7 million to jet company after plane gets impounded in Malaysia
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A file photo of a PIA airplane.
PIA informs London High Court that it has paid around $7 million to Peregrine Aviation Charlie Ltd
Leasing company had filed a case against PIA over its failure to pay the leasing fee
Lawyers for both parties sought an adjournment as they hoped that they could settle without a court order
LONDON: The Pakistan International Airlines (PIA) on Friday informed the London High Court that it has paid around $7 million to Peregrine Aviation Charlie Ltd in the case pertaining to two jets leased to it by the Dublin-based AerCap.
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Sputnik International
PIA’s continued troubles
January 17, 2021
As if the embarrassment in international court battles over Riko Diq, Karkay and Broadsheet was not enough, the Pakistani government now looks set to cough up another huge sum in penalty. A PIA aircraft was seized by the Malaysian authorities over a $14 million lease dispute following a British court order. The Boeing 777 aircraft was held back at Kuala Lumpur airport and frantic efforts are said to have already begun to solve the matter through diplomatic channels. Alternative arrangements were made for distraught passengers to bring them back to Pakistan.
With more than $4 billion in accumulated losses, PIA was already struggling financially when flights were grounded last year due to the pandemic. Now, if the court decides the matter against the national flag carrier in proceedings fixed for later this month, PIA will suffer another hole in its finances. A spokesperson for the carrier has called the injunction issued by a local Malays
Pakistan and its problems with international deals must now be extremely familiar to UK courts. The embarrassment these deals cause and the loss incurred to the national exchequer has caused immense.
Aviation Minister Ghulam Sarwar Khan addresses a press conference in Rawalpindi on Saturday. PID
ISLAMABAD: A day after a Pakistan International Airlines plane was impounded by Malaysian authorities due to a British court case over the aircraft’s $14 million lease dispute, Aviation Minister Ghulam Sarwar Khan said on Saturday that the national carrier did not pay the lease due to the Covid-19 pandemic.
Talking to reporters in Chak Beli Khan, the aviation minister said that PIA got two aircraft on lease in 2015 but due to the Covid-19 pandemic, the airline failed to pay the dues last year.
He said that a case was pending in a United Kingdom’s court and the airline was contesting the case in the UK but there had been no ruling in it yet.