• About
  • Advertise
  • Contact
Tuesday, August 16, 2022
  • Login
WRITE FOR US
Economy.pk
  • Economy
  • Politics
  • Technology
  • Education
  • Life & Style
  • Health
  • World
No Result
View All Result
Economy.pk
  • Economy
  • Politics
  • Technology
  • Education
  • Life & Style
  • Health
  • World
Economy.pk
Home Main

Grounded A320s in Jakarta Costing PIA Millions of Dollars

bySuneela Zulfiqar
June 30, 2022
in Main, World
Reading Time: 2 mins read
0
PIA introduces another Aircraft A-320 into its Fleet
957
SHARES
6.8k
VIEWS
Share on FacebookShare on Twitter

Pakistan International Airlines (PIA) is incurring expenses of approximately $600,000 per month for the two A320s that have been parked at the Jakarta Airport for the past nine months. Both aircraft have remained unused, costing over $295,000 each per month.

PIA has sustained losses in the millions of dollars due to delays in the redelivery process of the planes. This ensued after the company which leased the planes to PIA blamed the national airline for replacing parts and failing to conduct an essential ‘C Check’ prior to returning the jets.

RelatedPosts

Oil drops as China data weighs

Govt Jacks Up Petrol Price By Over Rs 6 , New Price is Rs 233.91 Per Liter

Flight From India Lands at Jinnah International Airport in Karachi

“We acknowledge the delays in the redelivery of the planes, and we are taking steps to rectify the situation,” said a PIA spokesperson. “We are working within the constraints of the COVID-19 pandemic and we are also facing a lawsuit that has resulted in delays. We are committed to resolving this issue as soon as possible.”

PIA employees have come under criticism for taking multiple government-funded trips to Jakarta, but the airline has explained that the supervisors needed to look after the planes while they were grounded under a third-party contractor.

PIA is one of the biggest loss-making state-owned enterprises. The annual loss of PIA in the fiscal year 2021 amounted to Rs. 50 billion and in 2020 it was recorded at a whopping Rs. 34.6 billion. The total loss of PIA ranges between Rs. 400-500 billion.

The Background

PIA acquired two A320s on lease in 2015 for a period of six years. The monthly rent of $550,000 included the rent for the planes, maintenance costs, and insurance. It is a common practice by airlines worldwide to pay a hefty amount of rent for leased planes.

It has been nine months since the expiration of the deal with FL Technic, a third-party company contracted for aeroplane inspection due to COVID-19 restrictions. The planes were flown to Jakarta for the inspection and it was determined that repairs were needed. To date, the planes have not been repaired.

“This entire fiasco is bleeding PIA dry right now. We are paying half a million dollars a month for planes we are not even using. And that too at such a critical time. On top of this PIA employees are going around to Jakarta on junkets with their families in tow. It is criminal,” said a source quoted by the Profit.

Tags: government-funded tripsJakarta AirportlatestPakistan International Airlines
Suneela Zulfiqar

Suneela Zulfiqar

Related Posts

Oil drops as China data weighs

Oil drops as China data weighs

on Monday oil prices fell by more than $4 a barrel on demand fears as disappointing Chinese economic data renewed...

Govt Jacks Up Petrol Price By Over Rs 6 , New Price is Rs 233.91 Per Liter

Govt Jacks Up Petrol Price By Over Rs 6 , New Price is Rs 233.91 Per Liter

The federal government on Monday announced a hike of Rs6.72 per litre in the price of petrol for the remaining...

Next Post
Cut-Off Yield on Treasury-Bills Down Up to 15 BPS

Cut-Off Yield on Treasury-Bills Down Up to 15 BPS

Recommended

Oil drops as China data weighs

Oil drops as China data weighs

Toyota Reduces Prices of All Local Cars by Over Rs. 1.1 Million

Toyota Reduces Prices of All Local Cars by Over Rs. 1.1 Million

Govt Jacks Up Petrol Price By Over Rs 6 , New Price is Rs 233.91 Per Liter

Govt Jacks Up Petrol Price By Over Rs 6 , New Price is Rs 233.91 Per Liter

Flight From India Lands at Jinnah International Airport in Karachi

Flight From India Lands at Jinnah International Airport in Karachi

Abdul Latif Sheikh becomes first Pakistani doctor to win prestigious pharmacy award

Abdul Latif Sheikh becomes first Pakistani doctor to win prestigious pharmacy award

Nawaz Sharif returning to Pakistan in September, says Javed Latif

Nawaz Sharif returning to Pakistan in September, says Javed Latif

Connect with us

Twitter

Economy.pk

Economy.pk touches diverse topics with a lighter note and is geared toward audiences with various interests and all ages. Come and explore Economy.pk. Ample details and analysis are provided in extraordinarily readable manner making them compelling and interesting at the same time.

Category

  • World
  • Politics
  • Business
  • Technology
  • Education
  • Health
  • Life & Style
  • Opinions

Social Media

  • Facebook
  • Instagram
  • Twitter
  • Linkedin

Sitelinks

  • Sitemap

Download our APP

download on android app download on apple app
  • About
  • Advertise
  • Contact

© 2022 All Rights Reserved Economy.pk | Designed & Developed by Digital Otters

  • LATEST
  • World
    • Europe
    • Americas
    • Asia
    • Oceania
    • Africa
    • Canada
    • Middle East
  • Finance
  • Politics
  • Business
    • Economy
    • Finance
    • Entrepreneurship
    • Real Estate
  • Technology
    • Cyber Security
    • Mobiles
    • Social Media
  • Education
  • Sports
  • Life & Style
    • Personalities
    • Art
    • Culture
    • History
    • Entertainment
    • Fashion
    • Food
    • Health
      • Environment
      • Fitness
  • Sponsored

© 2022 All Rights Reserved Economy.pk | Designed & Developed by Digital Otters

No Result
View All Result

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In