Aviation and Airlines (Commonwealth Union) _ Pakistan International Airlines (PIA) is grappling with a dispute involving two Airbus A320 aircraft leased from AirAsia. The disagreement arose when PIA returned the aircraft at the end of the lease term in September 2021, and AirAsia refused to accept them, citing discrepancies in their condition. PIA denies the allegations and contends that the aircraft were in good condition for return. The ongoing dispute has incurred significant losses for PIA, adding to the financial challenges the airline has faced in recent years.
The leased A320s were part of a six-year agreement signed in 2015. Despite PIA’s offer to purchase the aircraft at the end of the lease term, AirAsia declined, leading to the return of the planes. A third-party inspection conducted in Indonesia revealed issues with some parts of the aircraft and the absence of required C Checks, prompting AirAsia’s refusal.
To resolve the longstanding dispute, PIA has sent a seven-member delegation to Jakarta, Indonesia. The delegation, led by Saif Anjum, the Secretary of Aviation, includes the Chief Executive Officer, Chief Technical Officer, and Chief Financial Officer of PIA. The airline has offered to buy the aircraft for an additional $30 million, but as of now, there has been no response from AirAsia. PIA aims to bring the two A320s back into service and is eager to reach a final resolution.
PIA has been facing severe financial challenges, with the government of Pakistan seeking private investors to address the airline’s losses. The airline has dealt with staff strikes, demands for better pay, and a rejection of a government bailout. Projected to lose nearly $400 million in 2023, PIA is navigating a critical financial situation and exploring options to ensure its survival.
