PIA send delegation to Jakarta to resolve Airbus A320 aircraft dispute
Pakistan International Airlines (PIA) has taken proactive
measures by sending a delegation to Jakarta, Indonesia, as part of its
determined efforts to resolve a protracted dispute concerning two Airbus A320
aircraft leased from AirAsia. This dispute has persisted since September 2021
when PIA returned the aircraft to its lessor, AirAsia.
The contention stems from AirAsia's refusal to repossess the
aircraft, citing alleged breaches of contract by PIA. This ongoing dispute
compounds PIA's already challenging financial situation, with the grounded
planes incurring substantial storage fees and associated expenses.
Two
PIA aircraft stranded in Jakarta for two years
In 2015, Pakistan's national carrier, PIA, entered into a
six-year lease agreement with AirAsia for two Airbus A320s. These aircraft,
originally delivered to AirAsia in 2006, were leased to PIA in September and
November 2015. At the end of the lease term, PIA expressed interest in
purchasing the planes from the lessor, but this proposal was declined. Consequently,
PIA returned the two aircraft in September 2021, following a third-party
inspection conducted upon lease termination.
The inspection carried out in Indonesia revealed that the
aircraft did not meet the contractual condition specifications. Some parts of
the planes had issues, indicating that the required C Checks had not been
performed by PIA. Consequently, AirAsia declined to accept the aircraft.
Indonesian
aircraft grounded at Karachi Airport for weeks
PIA vehemently denied all allegations related to the
condition of the aircraft, asserting that they were in good condition for
return. Subsequently, the A320s have remained stored at Soekarno-Hatta
International Airport (CGK), incurring substantial storage fees and other
expenses for PIA in Indonesia.
Prospects for Negotiations with AirAsia: In an attempt to
bring closure to this protracted dispute, PIA authorities have dispatched a
seven-member delegation to Jakarta. The delegation is led by Saif Anjum, the
Secretary of Aviation, and includes key figures such as the Chief Executive
Officer of PIA, Amir Hayat, the Chief Technical Officer, and the Chief
Financial Officer of the airline.
According to reports, PIA has once again extended an offer
to purchase the aircraft for an additional $30 million but has not received a
response from the leasing company. PIA is determined to resolve the dispute
definitively and potentially reintegrate the two aircraft into its fleet. This
represents a final effort to resolve the dispute, with authorities eager to
reach a decision on the matter.
Source: https://simpleflying.com/