Turning around: PIA to lease 8 planes to upgrade fleet
Places ads to secure short, long-term leases for modern wide-body aircraft. PHOTO: FAISAL MOIN/EXPRESS
ISLAMABAD: Pakistan International Airlines (PIA) said on Monday it aimed to lease up to eight new aircraft in a move to upgrade its ageing fleet as the government sought to turn around the loss-making flag carrier.
A company spokesman said PIA had placed advertisements in domestic newspapers on Sunday seeking to secure both short- and long-term leases for wide-body aircraft.
The ad, which didn’t disclose financial terms for the leases, specified the airline was seeking modern planes, made since 2012, with capacity for more than 250 passengers each.
Prime Minister Nawaz Sharif had made the privatisation of PIA a top goal when he came to power in 2013. However, those plans were abandoned earlier this year after strikes by staff protesting against privatisation and a new turnaround strategy drawn up.
The government now plans to convert PIA into a limited company and list a 49% stake on the local stock exchange, meaning it will retain control of the business for at least two years. After that period, the government could still end up selling its controlling stake.
In its ad, the company said it was seeking a short-term wet lease of up to four wide-body aircraft, meaning the planes would come complete with crew and maintenance staff.
The ad sought a long-term dry lease of up to four aircraft, meaning aircraft without crew. It said the lease term would be six to eight years.
PIA said the new aircraft must have the latest in-flight entertainment services. Outdated planes with poor entertainment facilities are among complaints made by travellers.
The privatisation of 68 state-owned companies, including PIA, was a major element of a $6.7 billion International Monetary Fund loan package for Pakistan. Though some have been sold, many privatisations were put off until after the next general election, likely to be held in May 2018.
Original news : http://tribune.com.pk/story/1201305/turning-around-pia-lease-8-planes-upgrade-fleet/