At a time when the Pakistan International Airlines (PIA) has not completely come out of the financial crisis it has been facing for the last several weeks, it is likely to get embroiled in a dispute of $31 million with an international firm, Asia Aviation, which had moved a UK court against the airline’s failure to pay it the rent of two planes as well as the expenditures incurred on their repair, reported 24NewsHD TV channel on Thursday.
The airline has expressed the fear that in the event of the court’s verdict against it, its offshore properties as well as planes may be impounded.
And to make matters worse, the federal government has refused to lend it Rs8 billion so that it could settle its dispute with the firm.
The cabinet committee, on the other hand, while dissociating itself from the issue, has asked the Ministry of Aviation to resolve it itself.
Legal experts, on the other hand, have told the PIA’s management that since its stance is weak, therefore it should opt for an out-of-court settlement with the Asia Aviation.
A committee, which met in Jakarta, Indonesia with aviation secretary in chair, had agreed after negotiations to give $26 million to the firm.
The national flag carrier had acquired two A-320 planes from the firm in 2015 for a six-year lease period.
But both the planes have been parked at Jakarta airport since 2021.
Reporter: Tayyab Saif