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PIA pays $7mn after plane seizure in Malaysia

Islamabad - The leasing company had filed a case against PIA at the London High Court in October 2020 over its failure to pay the leasing fee worth about $14 million.

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The Pakistan International Airlines (PIA) confirmed that it has paid around $7 million to a jet company after a plane of the flag carrier was seized by Malaysian authorities over the non-payment of aircraft lease dues, the media reported on Saturday.

On Friday, the PIA informed the London High Court that it paid the amount to Peregrine Aviation Charlie Ltd in the case pertaining to two jets leased to it by the Dublin-based AerCap, reports Geo News.

The court was told that the PIA did not make payments since it asked for the amendment of its claim last July and that it owed $580,000 per month to the airliner.

The litigation was initiated due to non-payment.

The leasing company had filed a case against PIA at the London High Court in October 2020 over its failure to pay the leasing fee worth about $14 million, which had been pending for six months.

As soon as the company received the information of the PIA flight 895's scheduled landing in Malaysia, it appealed to a local court to seize the aircraft as per the international civil aviation leasing laws, sources added.

The Boeing 777 aircraft was then seized on January 15 after the London High Court issued the order.

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