Treasure Magazine

Treasure Magazine

PIA cancels four ATR-72 lease arrangement: PIA

2 min read
ATR
PIA ATR-72 aircraft were high on operational cost and expected market value resultantly making the flight operations non profitable

KARACHI: Pakistan International Airlines (PIA) has cancelled ATR-72 aircraft acquired on expensive lease arrangement, said PIA’s spokesman here on Saturday.

PIA ATR-72 aircraft were high on operational cost and expected market value resultantly making the flight operations non profitable. These aircraft were acquired on lease in the year 2015 and were higher than the present market price but due to the long-term agreement enforced, PIA was unable to return them earlier.

The ATR 72 on lease to PIA, costing rentals whilst on ground; on the instructions of CEO PIA, Air Marshal Arshad Malik, PIA officials negotiated a deal to return the aircraft to the leasing company with no cash penalty. It is beyond the norms of leasing business.

CEO PIA’s personal efforts and PIA Board’s support made such a deal possible under extreme pressure on Aviation Sector due to COVID pandemic. It will save the national carrier, millions of dollars in rent which would have been paid if the aircraft had stayed with PIA setting on ground due to no flights under pandemic situation. Bleeding stopped and an expensive deal of past has been terminated. This is yet another course correction by CEO PIA Air Marshal Arshad Malik

The first ATR-72 aircraft returned having registration number APBKY departed from Karachi for Johannesburg, South Africa, while 03 other ATR72 will also be returned.

CEO PIA Air Marshal Arshad Malik while congratulating PIA team on successful negotiations which made possible the return of these aircraft said that it was not only a difficult decision at this crucial time but unavoidable as well.

CEO PIA said that the airline will keep operating other ATR aircraft which make the operations viable on short routes.

Meanwhile under the supervision of Government of Pakistan, PIA will soon acquire new aircraft in its fleet which will improve the airline’s product and service considerably.

New aircraft and improved service expected since long from our passengers will soon be fulfilled said CEO PIA Air Marshal Arshad Malik.