Citing high lease costs and sub-optimal utilization, PIA Pakistan International Airlines is sending its fleet of leased ATR 72-500s back to the owner.
The Karachi-based airline has four ATRs from aircraft leasing company ABRIC Leasing. The lease was due to run until 2021, but PIA has brokered a deal with ABRIC and has already started sending the planes back.
The aircraft in question are AP-BKV, AP-BKX, AP-BKY, and AP-BKZ. According to planespotters.net, the ATRs came to PIA in the middle of 2015 after a stint flying for UTair-Ukraine. All four aircraft have spent much of 2020 parked. One of the ATRs, AP-BKY, has already left Pakistan. Aircraft tracking databases have it landing in Johannesburg on December 14.
Pakistan’s criminal investigation, counter-intelligence, and security agency, the Federal Investigation Agency (FIA), has commenced an investigation into the 2015 leasing deal. At issue is the lease price paid. Pakistani news channel Ary News reports three ATR planes were leased at Rs179,500 per aircraft. That equates to approximately US$1120, so the figure likely reflects a per day rate, or just over US$34,000 per calendar month. The remaining two ATRs cost slightly less.
The aircraft in question are AP-BKV, AP-BKX, AP-BKY, and AP-BKZ. According to planespotters.net, the ATRs came to PIA in the middle of 2015 after a stint flying for UTair-Ukraine. All four aircraft have spent much of 2020 parked. One of the ATRs, AP-BKY, has already left Pakistan. Aircraft tracking databases have it landing in Johannesburg on December 14.
Pakistan’s criminal investigation, counter-intelligence, and security agency, the Federal Investigation Agency (FIA), has commenced an investigation into the 2015 leasing deal. At issue is the lease price paid. Pakistani news channel Ary News reports three ATR planes were leased at Rs179,500 per aircraft. That equates to approximately US$1120, so the figure likely reflects a per day rate, or just over US$34,000 per calendar month. The remaining two ATRs cost slightly less.
It is reported the 2015 leasing decision has since cost PIA US$43.7 million, a hit to the bottom line the embattled airline can ill-afford. The airline is said to have assets worth around US$668 million but is carrying debts of nearly $3 billion. Earlier this month, CEO Arshad Malik claimed PIA was on track to become profitable within a few years.
“We are trying to reduce the PIA’s losses with the cooperation of the private sector,” today’s Express Tribune quotes him saying.
“We are facing issues because of the coronavirus pandemic, but the PIA will soon reach new heights.”