PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

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NL
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by NL »

Karachi Aviator wrote: Mon Oct 16, 2023 11:11 amThe leasing company did not extend the lease of these airplanes due to non-payment of dues in 2021 and PIA had to pay the parking fee of the planes to the leasing company due to non-regular returns.

Sources revealed that the monthly parking fee of both airplanes is $0.6 million per month which has been pending for two years.
By the way, 600,000 USD per month isn't "parking fees", that's the full lease payments that are only due because they didn't manage to timely return these aircraft in proper shape at the end of the lease. Typical parking fees for two aircraft of this size would be well under 10% of the quoted amount.
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by Amaad Lone »

Has PIA been paying lease payments to Air Asia for the two A320s??

Looks like they have only paid parking fees at Jakarta and no lease payments.
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Usman123
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by Usman123 »

Yes i think lease payments weren't made and after two years the monthly lease payments of 2 years combined haev exceeded the value of these two 17 years old A320s thats why PIA is purchasing these jets

Don't know why weren't these planes bought at the end of 6 years lease instead of trying to return them in unacceptable conditions
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by Amaad Lone »

Don't know why weren't these planes bought at the end of 6 years lease instead of trying to return them in unacceptable conditions
Airline officials in one statement mentioned that PIA offered to buy the planes but Air Asia refused.

Now they see as a no win situation where PIA might shut down so they are willing to unload the grounded Airbuses.
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by aircraftdriver93 »

When these aircrafts are going to join PIA fleet?
Usman123 wrote: Wed Oct 18, 2023 1:49 pm Yes i think lease payments weren't made and after two years the monthly lease payments of 2 years combined haev exceeded the value of these two 17 years old A320s thats why PIA is purchasing these jets

Don't know why weren't these planes bought at the end of 6 years lease instead of trying to return them in unacceptable conditions
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by Usman123 »

Took them 2 years to make this decision hope they join as soon as they can
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by AP-BGL »

aircraftdriver93 wrote: Wed Oct 18, 2023 7:34 pm When these aircrafts are going to join PIA fleet?
Usman123 wrote: Wed Oct 18, 2023 1:49 pm Yes i think lease payments weren't made and after two years the monthly lease payments of 2 years combined haev exceeded the value of these two 17 years old A320s thats why PIA is purchasing these jets

Don't know why weren't these planes bought at the end of 6 years lease instead of trying to return them in unacceptable conditions
Probably December 2023.
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by inducedrag »

The people in this blunder should be punished
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by Abbas Ali »

PIA has requested a PKR 7.5 billion budget support grant from the federal government, but the Ministry of Finance is reluctant to provide it in the absence of a viable plan.

The request for the grant is to settle a deal of $26 million with Asia Aviation Capital Limited (AAC), which, in 2015, leased two Airbus A320 (AP-BLY & AP-BLX) aircraft to PIA for six years. Last month, PIA received a court notice for immediate payment of $31.3 million for outstanding rent, re-delivery rent, maintenance reserves, and interest charges for the two aircraft.

PIA is attempting to reach an out-of-court settlement with AAC for $26 million, with approval reportedly granted by Prime Minister Anwaarul Haq Kakar, according to sources.

The finance ministry is no longer inclined to cover the costs and has requested that PIA handle its commercial dealings on its own.

As is often the case, PIA has warned that if legal matters with AAC are not resolved and an adverse court decision is reached, its aircraft and foreign hotels could be confiscated.

PIA has been managed in an unprofessional manner and has largely been sustained by state bailouts. However, the Finance Ministry has now exhausted its resources due to an overarching macroeconomic crisis.

https://tribune.com.pk/story/2442808/pi ... alks-begin
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by Abbas Ali »

On October 27, Economic Coordination Committee (ECC) approved PKR 8 billion for PIA through Pakistan CAA resources for overdue payments of two Airbus A320 aircraft registrations AP-BLY and AP-BLZ dry leased to PIA parked in Jakarta, Indonesia.

Upon payment, arrival of first aircraft in Pakistan expected in 10 to 15 days. Second aircraft expected to arrive in December.

in 2015, PIA entered into a six-year lease agreement for the two Airbus A320 aircraft. The monthly lease payment was close to $550,000. This comprehensive package covered not only the aircraft rent but also maintenance expenses and insurance costs.

The lease agreement for the Airbus aircraft concluded in 2021, following which the planes were dispatched to Jakarta for re-delivery.

n a twist of events, Air Asia took over the leasing firm from which Pakistan had leased the aircraft. The new management stipulated that the leased planes be returned to their original state, necessitating the substitution of worn-out accessories with brand-new ones.

The company insisted on having the aircraft delivered to FL Technics in Jakarta for comprehensive maintenance, repair and overhaul. A PIA source revealed that Pakistan had no alternative but to comply with this demand in September 2021.

Pakistan and Air Asia engaged in multiple rounds of discussions, with disagreements primarily centered on the procedure for parts replacement. However, a consensus was eventually reached to replace the accessories, effectively restoring the aircraft to near-new condition.

According to the source, the government subsequently opted to buy the Airbus, a decision that the company concurred with. However, due to Pakistan’s inability to arrange the necessary funds promptly, the company retracted its agreement to sell the planes to Pakistan.

Recently, a high-level official delegation comprising representatives from CAA and PIA visited Jakarta. The delegation renegotiated the deal with the company, settling on a price range of US$21m to $26m.

PIA is currently paying a combined monthly rental of $600,000 for the two Airbus A320 aircraft that have been stationed in Jakarta since September 2021. This constitutes an extra expenditure for PIA, as it continues to pay the company despite not utilizing the planes.

https://www.dawn.com/news/1784381/ecc-o ... ber%202021.

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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by Abbas Ali »

Payment Dispute Between PIA and Aircraft Leasing Company Settled Out of Court

Payment dispute between national airline PIA and aircraft leasing company Asia Aviation Capital Limited (AAC) on two Airbus A320 aircraft (AP-BLY & AP-BLZ) dry leased to PIA for six years in year 2015 has been settled out of court and PIA will pay $26 million to the aircraft leasing company, PIA spokesperson confirmed the said agreement.

Under dry lease agreement for the two A320s, PIA had to pay $550,000 per month towards lease, maintenance and insurance which was sometimes paid and sometimes not by the airline. Thus, the amount of arrears continued to increase and the aircraft leasing company approached the court.

https://e.jang.com.pk/detail/569097
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ammad
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by ammad »

Abbas Ali wrote: Sat Nov 11, 2023 10:53 pm Payment Dispute Between PIA and Aircraft Leasing Company Settled Out of Court

Payment dispute between national airline PIA and aircraft leasing company Asia Aviation Capital Limited (AAC) on two Airbus A320 aircraft (AP-BLY & AP-BLZ) dry leased to PIA for six years in year 2015 has been settled out of court and PIA will pay $26 million to the aircraft leasing company, PIA spokesperson confirmed the said agreement.

Under dry lease agreement for the two A320s, PIA had to pay $550,000 per month towards lease, maintenance and insurance which was sometimes paid and sometimes not by the airline. Thus, the amount of arrears continued to increase and the aircraft leasing company approached the court.

https://e.jang.com.pk/detail/569097
This had to be done 2 years ago, it's a very careless way of doing and managing assets and business.
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by inducedrag »

2 Set of crew are going via Malaysia to fly these aircraft back
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by Karachi Aviator »

AP-BLZ did a test flight today
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Re: PIA Paying USD 600,000 Per Month for Two Airbus A320s Parked in Jakarta

Post by Abbas Ali »

^ Thanks for sharing info.

On December 2, after a gap of more than 26 months, PIA Airbus A320 aircraft registration AP-BLZ returned to the skies when it performed a 1 hour & 11 minutes duration test flight from & to Jakarta. The aircraft departed from Jakarta at 11:51 AM and landed in Jakarta at 1:02 PM

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Source: flightradar24.com

AP-BLZ was on the ground since arriving at Jakarta Soekarno Hatta International Airport, Indonesia, on September 19, 2021.

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