PIA pays $7mn for aircraft impounded in Malaysia

LONDON: The Pakistan International Airlines (PIA) has informed the London High Court that it has paid $7 million to aviation company Peregrine Aviation Charlie Ltd in the case pertaining to two jets leased by the Dublin-based AerCap.

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 AerCap.

The lawyers for both the PIA and the airline agency sought an adjournment, hoping to reach a settlement without the court issuing an order against PIA. 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.

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 did not 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 pending for six months.

PIA had maintained there should be a reduction in the overhead charges as the coronavirus pandemic had seriously affected the aviation industry. The leasing company has appealed to a local court to seize the aircraft as per the international civil aviation leasing laws as soon as the flight landed in Malaysia.

PIA spokesperson had said the Boeing 777 aircraft was seized after London High Court issued the order. However, the flag carrier’s lawyers did not raise objections about the seizure of its plane in Malaysia.

The interim injunction ordered that the PIA is restrained from moving two aircraft in its fleet — Boeing 777-200ER with serial number 32716 and a Boeing 777- 200ER with serial number 32717 — once they have landed or parked at Kuala Lumpur International Airport until a further hearing on the matter.