Asia Aviation takes legal action against Pakistan International Airlines (PIA)
In a challenging period for Pakistan International Airlines
(PIA) as it grapples with an ongoing financial crisis, the airline is now
facing a potential $31 million dispute with the international firm Asia
Aviation. Asia Aviation has initiated legal action in a UK court, citing PIA's
failure to make payments for the rent of two aircraft and the associated repair
costs.
PIA has expressed concerns that, should the court rule against
it, its offshore properties and aircraft could be subject to impoundment. To
compound the issue, the federal government has declined to provide PIA with a
loan of Rs8 billion to settle the dispute with Asia Aviation.
PIA
send delegation to Jakarta to resolve Airbus A320 aircraft dispute
Meanwhile, the Cabinet Committee has distanced itself from
the matter, instructing the Ministry of Aviation to handle the resolution
independently.
Legal experts have advised PIA's management that, given its
weak position, an out-of-court settlement with Asia Aviation would be a prudent
course of action.
During a committee meeting in Jakarta, Indonesia, chaired by
the aviation secretary, negotiations resulted in an agreement to offer $26
million to Asia Aviation. PIA had acquired two A-320 planes from the firm in
2015 under a six-year lease, but both aircraft have been parked at Jakarta
airport since 2021.
Source: 24 News