PIA triumphs in lease dispute: Airbus A320 returns to fleet

ISLAMABAD: In a significant development, Pakistan International Airlines (PIA) has successfully retrieved one of its two stranded planes that were marooned in Jakarta, Indonesia, for the past two years amid a lease dispute.

The Airbus A320, bearing registration number AP-DLG with two pilots and a crew member took off from Jakarta and after refueling from Bangkok and then the aircraft landed at Islamabad around 10:45pm.

Welcoming the aircraft, senior officials of the PIA management expressed satisfaction as the plane seamlessly rejoined the PIA fleet. The second stranded aircraft, another Airbus A320, is anticipated to reach Pakistan within the next couple of days.

The total count of Airbus planes in the national carrier fleet has now reached 16 with the successful induction of the Airbus A320. The resolution of the lease dispute involved a substantial payment of $26 million by PIA to the leasing company.

PIA owe Jakarta airport above Rs4b in parking fee

Back in October, a high-level PIA delegation, led by the aviation secretary, engaged in talks with the leasing company in Malaysia to facilitate the return of the stranded planes.

The spokesperson noted that both Airbus A320 planes had been grounded in Jakarta since September 2021 due to the leasing dispute, emphasizing the airline’s intention to purchase the aircraft by investing $30 million for necessary overhauls.

The successful retrieval of one plane marks a positive turn in this prolonged saga, showcasing PIA’s commitment to resolving disputes and reinforcing its fleet for improved operational capabilities.

Briefing on PIA privatisation

In a recent session chaired by Senator Salim Mandviwala, the Senate Standing Committee on Aviation delved into the updates on the privatization process of Pakistan International Airlines (PIA).

Caretaker Prime Minister’s Adviser on Aviation, Farhat Hussain, provided a comprehensive briefing to the Committee, revealing that the journey towards privatization commenced in April and reached a significant milestone by the end of September when PIA was officially handed over to the Privatization Commission.

During the briefing, it was disclosed that PIA had been generating a monthly revenue of 22 billion rupees before the privatization process. Additionally, the airline had been obtaining fuel on credit from the Pakistan State Oil (PSO) in the preceding period.

Adviser Farhat Hussain shared that efforts to retrieve the grounded PIA aircraft were bearing fruit, with one of the planes successfully recovered. The Committee was informed that the return of the second aircraft is anticipated within the next three weeks.

The meeting underscored the ongoing transformation within PIA and its transition towards privatization, shedding light on financial aspects and operational developments