PIA pays $7mn for impounded jet in Malaysia

11:17 AM | 23 Jan, 2021
PIA pays $7mn for impounded jet in Malaysia

ISLAMABAD – 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 of two jets leased to it by the Dublin-based AerCap.

The national carrier pays the amount after the Malaysian authorities seized a PIA Boeing-777 at the Kuala Lumpur airport last week, on the orders of a local Malaysian court, over the non-payment of aircraft lease.

Both parties sought an adjournment as they hoped that the full amount would be paid through an agreement. Appearing online, the airline’s lawyer Erin Hitchens requested the judge to adjourn the hearing as the parties settle issues of the lease, rent, interest, lease, and the allocation of payment.

The claimant’s position is that the sums were paid today by the defendant (Pakistan International Airlines), AerCap’s lawyer told the court.

The court was informed that Pakistan national carrier did not clear payments since it asked for the amendment of its claim in July and that it owed $580,000 per month to the airliner, but it didn’t pay and litigation was initiated.

In reply to the statement, PIA had maintained there should be a reduction in the overhead charges in wake of the financial crisis amid the Covid-19 pandemic.

On the other hand, the leasing company kept an eye on the activities of PIA, and as soon as it received the information of flight 895’s scheduled landing in Malaysia, it appealed to a local court to seize the aircraft as per the international civil aviation leasing laws.

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