Pakistan’s Economic Coordination Committee (ECC) has approved bridging finance of PKR8bn (USD28.9m) for PIA (Pakistan International Airlines) to settle a lease dispute with Asia Aviation Capital Limited (AACL). The dispute involves two A320-200s grounded in Jakarta since September 2021.
AACL is seeking over USD31m from PIA in unpaid rent, maintenance reserves, and contractual interest. The case is now before England’s courts, and negotiations to settle the dispute are in their conclusive stages.
As part of the agreement, PIA will take ownership of the two aircraft, and once payment is received, AACL will deliver the first aircraft within 10-15 days, with the second to follow in the next month.
Separately, PIA owes PKR26.8bn (USD96.8m) to state-owned Pakistan State Oil (PSO) for unpaid fuel invoices. PSO threatened to halt fuel supply if the dues aren’t cleared. Talks between PIA and PSO have resulted in a temporary boost to PIA’s credit limit, allowing the airline’s scheduled flights to operate uninterrupted for now.
