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PIA plane impounded in Malaysia: Airline pays $7 million to jet company

Arhama AltafWeb Editor

22nd Jan, 2021. 11:37 pm
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The Pakistan International Airlines (PIA) on Friday informed the London High Court that it has paid around $7 million to Peregrine Aviation Charlie Ltd in the case pertaining to two jets leased to it by the Dublin-based AerCap.

The development came after the Malaysian authorities seized a PIA Boeing-777 at the Kuala Lumpur airport last Friday, on the orders of a local Malaysian court, over the non-payment of aircraft lease dues owed to the Dublin-based AerCap.

Lawyers for both the PIA and the airliner sought an adjournment as they hoped that the full amount would be paid through an agreement without the court issuing an order against PIA.

Appearing online, 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 Dublin-based AerCap’s lawyer told the court: “The claimant’s position is that the sums were paid today by the defendant (PIA).”

The court was told that PIA didn’t make payments since it asked for the amendment of its claim in July and that it owed $580,000 per month to the airliner, but it didn’t pay and litigation was initiated.

The leasing company had filed a case against PIA in London High Court in October 2020 over its failure to pay the leasing fee — worth about $14 million — which had been pending for six months.

In response, PIA had maintained that since the COVID-19 pandemic had seriously affected the aviation industry, there should be a reduction in the overhead charges.

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