PIA pays $7mn after plane seizure in Malaysia

PIA pays $7mn after plane seizure in Malaysia

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The Pakistan International Airlines (PIA) confirmed that it has paid around $7 million to a company after a PIA plane was seized by Malaysian authorities over the non-payment of aircraft lease dues.

Reportedly on Friday, Pakistan International Airlines (PIA) told the London High Court by saying that

“It has paid nearly around $7 million dues to Peregrine Aviation Charlie Limited for the two jets leased to it by AerCap”.

What happened?

The hearing was related to the case of confiscation of PIA’s Boeing-777 by the Malaysian Authorities. This happened on Friday last week at Kuala Lumpur airport. The plane was seized on the directives of the Malaysian Court.

The court asserted that PIA had not paid its dues to the Dublin-based AerCap. However, on Friday the lawyers for both the PIA and the airline agency sought an adjournment, hoping to settle without the court issuing an order against PIA.

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 aircraft leasing company believes that PIA would pay its further dues without the notice of the court.

The plaintiff’s lawyer said,

“The claimant’s position is that the sums were paid today by the defendant (PIA).”

Last week, local authorities in Malaysia had seized a Pakistan International Airlines (PIA) plane in Kuala Lumpur on the regional court’s order. PIA Boeing 777 was seized due to the non-payment of a lease. The leasing company had called upon the Malaysian courts to impound the aircraft.

Current proceedings of the case

As per sources, the said case is currently ongoing in a UK court. Moreover, it has begun its proceedings based on one-sided views and information.

“A PIA aircraft has been held back by a local court in Malaysia taking the one-sided decision about a legal dispute between PIA and another party pending in a UK court,” read a tweet issued by PIA’s official Twitter handle.

“It is an unacceptable situation and PIA has engaged the support from Government of Pakistan to take up this matter using diplomatic channels,” read another tweet by PIA.

Stranded Passengers

However, 172 passengers on board the PIA Boeing 777 were stranded in Malaysia.
A statement from the national carrier said:

“On Friday will be returning to Pakistan via Emirates and Qatar Airways flights on Saturday and Sunday respectively”.

According to sources, the PIA still sent the seized plane to Kuala Lumpur despite knowing about the unpaid lease. Certainly, it is an embarrassment for the national airline as Malaysian authorities seize PIA plane.

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