PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

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Amaad Lone
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

Post by Amaad Lone »

580,000 dollars a month for the lease of one 777-200ER.

If PIA owes 14 million dollars that is probably the lease payments of both BMG and BMH for the entire year of 2020.

How can PIA say they owe since June 2020 when they owe 14 million dollars for the two planes??

With limited operations to Saudi Arabia, no China, no Japan, no UK, no Europe and limited flights to UAE the revenue base of PIA was going to deplete pretty fast.

PIA should have tried to break the lease and return these planes back in June 2020.
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

Post by NL »

Amaad Lone wrote: Sat Jan 23, 2021 2:32 pm580,000 dollars a month for the lease of one 777-200ER.

If PIA owes 14 million dollars that is probably the lease payments of both BMG and BMH for the entire year of 2020.
Yup. I arrived at the same conclusion before the lease rate even became public.
Amaad Lone wrote: Sat Jan 23, 2021 2:32 pmHow can PIA say they owe since June 2020 when they owe 14 million dollars for the two planes??
If the truth is unacceptable proof of one's own incompetence, just keep on lying in a desperate attempt to save face. By claiming to be "only" 6 months behind, they're trying to blame covid19 for what is in reality is -as the doctor would say- a "pre-existing condition".
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Abbas Ali
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

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Pakistan Air Line Pilots' Association (PALPA) in a statement issued on January 22 said:

"PIA reduced the salaries of the staff, annulled their medical facilities, stopped their pension payments, and offered a VSS scheme just to show that the airline is in profit.”

“Despite showing profits to the public, the management failed to clear lease payments on time, letting the nation down due to its incompetency,” the statement read.

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Abbas Ali
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

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During a hearing in London court on January 22, PIA lawyer informed the judge that the airline has paid USD seven million to the leasing company Peregrine Aviation, but dispute persists for the remainder of USD two million.

According to the agreement, the aircraft lease charges were USD 580,000 per month and the maintenance reserves at USD 315,000 per month.

PIA's position is that maintenance reserves are calculated according to aircraft utilization that has been low due to COVID-19 pandemic.

https://epaper.dawn.com/DetailImage.php ... 21_001_008

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adamalikhan
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

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Given the global pandemic, reduced air travel and the availability of more aircraft, most likely a lot cheaper than the lease PIA has for this aircraft, would it not be better to cut its losses, allow the return of these aircrafts early and if they need another widebody for their current routes, lease from elsewhere?
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

Post by NL »

adamalikhan wrote: Sun Jan 24, 2021 4:00 pmwould it not be better to cut its losses, allow the return of these aircrafts early and if they need another widebody for their current routes, lease from elsewhere?
Note that impounding the asset for non-payment doesn't settle the bill, it just takes away use of the aircraft from the lessee (so they'll be more inclined to finally pay up). Lease contracts don't usually allow free-of-charge early cancellation, and are almost certain to have a jurisdiction clause. That means pakistani courts won't get to decide on the matter, and pia all of a sudden isn't above the law like in domestic affairs.
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Abbas Ali
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

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Aviation Minister Ghulam Sarwar Khan says PIA will bring back the aircraft from Kuala Lumpur after settling the payment dispute with the leasing company.

https://epaper.dawn.com/DetailImage.php ... 21_003_004

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pk363
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

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A Malaysian court has ordered immediate release of impounded PIA 777

https://www.dawn.com/news/1603921/malay ... se-dispute
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

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According to PIA spokesperson, the Boeing 777-200ER registration AP-BMH is expected to return to Pakistan in next two days. PIA will operate flight from Kuala Lumpur to Pakistan with passengers.

The airline is making arrangements to send aircraft crew to Kuala Lumpur.

On mutual agreement between PIA and the aircraft leasing company, the case has been withdrawn from the Malaysian court by the leasing company.

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Abbas Ali
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

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PIA Boeing 777-200ER registration AP-BMH seen parked at Kuala Lumpur Airport.

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Abbas Ali
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

Post by Abbas Ali »

PIA was represented by Malasyian lawyer Kwan Will Sen in the Malaysian court.

PIA can now operate flights with both Boeing 777-200 aircraft registration AP-BMG and AP-BMH leased from UAE-based Peregrine Aviation that has withdrawn lease payment dispute case from the Malaysian court.

AP-BMG is parked at Karachi Airport.

https://www.flightradar24.com/data/aircraft/ap-bmg

AP-BMH is parked at Kuala Lumpur Airport.

https://www.flightradar24.com/data/aircraft/ap-bmh

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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

Post by Abbas Ali »

PIA Boeing 777 (aircraft registration AP-BMH) has departed from Kuala Lumpur as flight PK895 to Islamabad.

The crew to bring aircraft to Pakistan was sent to Kuala Lumpur through a foreign airline by PIA after resolution of aircraft lease payment dispute.

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Source: flightradar24.com

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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

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AP-BMH landed at Islamabad Airport at 5:09 PM as flight PK895 from Kuala Lumpur completed in six hours & twenty-seven minutes.

The aircraft carried 173 passengers.

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Source: flightradar24.com

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Amaad Lone
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

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This is where PIA could have done really well with the A321-Neo.

carrying 176 passengers in 2 class layout.

Flying a 777 with 170 passengers if a loss making proposition.

A321 much less fuel used, less crew flown.
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Re: PIA Boeing 777 Impounded by Malaysian Authorities in Kuala Lumpur

Post by GEnx »

After the pandemic, even major airlines are replacing their wide body aircraft with longer range narrow body jets. For PIA, the B777s are like A380s and that too without IFE and with outdated cabin. PIA should return all its dry leased B777s. The lease of 777s was never justified even before the pandemic. Even the A310 was better at such routes having load of around 200. But PIA was not interested in getting a proper replacement for A310s. They should have added A321s while phasing out A310s.