Plane seized in Malaysia: PIA pays $7 million to leasing company

Plane seized in Malaysia: PIA pays $7 million to leasing company

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Islamabad: Pakistan International Airline (PIA) on Friday informed the london High Court that it has paid $7 million to peregrine Aviation Charlie Ltd in the case related to two jets leased to it by Dublin-based AerCap.

This comes a week after the Malaysian authorities seized a PIA boeing-777 at the Kuala Lumpur Airport on order of a local Malaysian court, over the non-payment of aircraft lease dues owed to AerCap.

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

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 heard that PIA had not paid since July requested an amendment to the claim and owed the airliner $580,000 per month, but it failed to pay, so it filed a lawsuit.

The leasing company filed a lawsuit against PIA in the High Court of London in October 2020 because the company did not pay a lease fee worth approximately $14 million, which has been pending for six months.

In this regard, the national air carrier of Pakistan insists that as the COVID-19 pandemic has seriously affected the aviation industry, indirect costs should be reduced.

At the same time, the leasing company paid close attention to the activities of PIA, and after receiving the information that Flight 895 was scheduled to land in Malaysia, it filed a lawsuit with the local court in accordance with the International Civil Aviation Lease Law, requesting the seizure of the aircraft. Add to.

The Boeing 777 aircraft was seized after London High Court issued the order, an airline spokesman had said.

“A PIA aircraft has been held back by a local court in Malaysia taking a one-sided decision pertaining to a legal dispute between PIA and another party pending in a UK court,” a PIA spokesman Abdullah H Khan said in a statement at the time but today the flag carrier’s lawyers raised no objections about the seizure of its plane in Malaysia.

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