Pakistan’s flag airline PIA and Malaysian-based lessor Asia Aviation Capital Limited have reached the final stages of settling a long-standing dispute over two A320-200 aircraft that were stuck at Jakarta Soekarno-Hatta airport. AACL, a subsidiary of Capital A, was claiming $31m from PIA, but both parties have agreed on a $26m payment.
Talks between PIA and AACL took place in Kuala Lumpur, and a PIA spokesperson has mentioned that a resolution is imminent. AACL had previously filed a case in London’s High Court against PIA, but it seems they are close to formally resolving the matter.
The dispute centred around two aircraft leased by PIA from AACL in 2015. With PIA falling behind on payments, AACL started legal action in England, which ruled in favor of the lessor. In 2021, AACL had the aircraft flown to Jakarta for maintenance, where they have remained since.
AACL’s claim against PIA is for $31,343,641, alleging that PIA failed to return the aircraft at the end of their lease. The claim includes unpaid rent, redelivery rent, maintenance reserves, and contractual interest.
After previous failed attempts to resolve the matter, PIA’s legal representative advised them to mediate a solution. The soon-to-be-signed agreement will see PIA pay approximately $26m, and in return, AACL will transfer the titles of the two planes to PIA in two installments.
To cover the payments, the Pakistan government’s Economic Coordination Committee approved bridging finance of PKR 8bn (approximately $28.9m) on October 29.
