PIA gets rid of aircraft at great cost

[Abbas Ali]

By Masood Anwar

KARACHI: Pakistan International Airlines (PIA) has spent much more on the maintenance of six old A300B4 aircraft which were tendered for sale on an "as is where is basis" before delivery to the buyers than the price they were finally sold for.

This curious fact came to light during the physical inspection of the aircraft by the Senate Standing Committee on Defence and Defence Production recently.

According to an estimate of the PIA Engineering department, the total cost of maintenance for the A300B4 aircraft for PIA to continue to operate on its fleet was estimated at $17.263 million. Therefore, the PIA management decided to sell the entire fleet and made a deal at $10.1 million for all six aircraft.

After this decision, PIA started various maintenance checks including C-checks and base checks on the aircraft. PIA estimated that one C check requires 3,700 man-hours of work while a major base check consumes 10,000 man-hours. PIA’s labour rate is $30 per manhour or more, which they charge their customers.

Ironically, despite the decision to sell the aircraft, the PIA is replacing, repairing and installing new equipment on the sold aircraft worth of millions of dollars. The matter does not end here, the PIA has also been providing facility to sell disassembled parts of the sold aircraft as components for Turkish buyers which in the open market will fetch a good price.

PIA management has already invited bids for the hiring on wet lease of various aircraft like B747, A300-600/ A330, B737-800/A320 to make up for the capacity shortage created due to the sale of the A300B4 fleet. It is noteworthy that as replacement for the retiring A300B4 fleet, PIA had already in 2004 dry leased for 10 years six A310 aircraft from Airbus.

As the PIA has made airworthy all the planes, it is apprehended that PIA would get the same on the lease from MNG. The PIA is already operating two aircraft of MNG on wet lease as freighters.

For the last Hajj season, the PIA hired three aircraft at the rate of three million dollars each. The PIA hired those three aircraft in the presence of A300B4 fleet and the dry leased six A310 aircraft. Now, these six aircraft are phased out and this means, that PIA has to acquire six or more aircraft. That is why the PIA management has invited bids for three aircraft by November, 2005 before the commencement of the Hajj season. The airline is also looking to lease three aircraft for a one-year period, sources add.

The PIA management was approached repeatedly for its version of this story in line with ethical journalistic principles. Repeated contacts were made with Ms Samina Pervez, General Manager of Public Affairs of the airline for the company’s version. However, despite repeated calls in August, no response was given.

On August 28, this correspondent faxed questions to the PIA’s public affairs GM but got no answer. A final series of calls was made by senior editors of the paper in September but again there was no response to the story.

Source: The News

[AirBlue]

isnt 10million less for 6 A300s?

[Falcon598]

Well they did have a lot of flying hours on them. But still I think that MNG got a bargain.

[F.K]

mng plans to use these planes up to 2010 with a higher safety record.

[F.K]

mng plans to use these planes up to 2010 with a higher safety record. plus these plenes did not have very stressed airframes. hours varied between 55 to 65 thousand, around the same ball mark figure that the 737s have logged

[FULLTHRUST]

its ballpark figure not ball mark!!!!!!!

secondly mng are the greatest A**holes of the century of buying ex-pia a300s as they do not know (neither you) the condition of those aircraft which you admire as the space shuttle.

mng would be another feather to those airlines which have been declared blacklist among others from various parts of the world, after the cyprus and columbian crashes.

do not compare an alfa romeo with a suzuki fx800.

[hajafri]

Another important reason for PIA to get rid of those airbus/s or to sell them to MNJ was that they had lacks of passengers on domestic routes to fly those huge birds empty it costs a lot. There are also other domestic and international airlines in Pakistan.

[DEZI]

By Masood Anwar

KARACHI: Pakistan International Airlines (PIA) has spent much more on the maintenance of six old A300B4 aircraft which were tendered for sale on an "as is where is basis" before delivery to the buyers than the price they were finally sold for.

This curious fact came to light during the physical inspection of the aircraft by the Senate Standing Committee on Defence and Defence Production recently.

According to an estimate of the PIA Engineering department, the total cost of maintenance for the A300B4 aircraft for PIA to continue to operate on its fleet was estimated at $17.263 million. Therefore, the PIA management decided to sell the entire fleet and made a deal at $10.1 million for all six aircraft.
Ironically, despite the decision to sell the aircraft, the PIA is replacing, repairing and installing new equipment on the sold aircraft worth of millions of dollars. The matter does not end here, the PIA has also been providing facility to sell disassembled parts of the sold aircraft as components for Turkish buyers which in the open market will fetch a good price.

Source: The News

History is being re-written. This time around the victims being the B747 and B737.

[CoyBoy]

Two Trade Winds A300F still at KHI.