PIA strikes a fishy deal

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Last week, the management of Pakistan International Airlines (PIA) has struck a fishy deal by acquiring two Boeing 747-200 series aircrafts SX-TIC and SX-TIE on ‘wet lease’ from an Athens-based Greek carrier, Hellenic Imperial Airways, at a grossly inflated lease for transporting pilgrims during Hajj operations.
Despite the fact that most of the large carriers in the world have retired Boeing 747-200 series from their fleets, PIA has acquired both aircrafts which are over 30 years old, while leasing of aircrafts with over 15 years of age is restricted by most of the aviation authorities throughout the world. However, the Civil Aviation Authority (CAA) has issued clearance to PIA which is a big question mark on the performance of the aviation regulator.
It is to be noted that a wet leasing is the leasing of an aircraft in which the leaser provides the cockpit crew, the cabin crew, maintenance and insurance for the aircraft. This type of lease is generally for a very short period and Hajj pilgrimage flights are often operated on this basis. By contrast, wet leasing is costlier than dry lease.
Besides the dubious aircraft lease contract, it was revealed that national flag carrier, leased two repaired aircraft without tendering bids that caused millions in losses to the exchequer. The Civil Aviation Authority (CAA) permitted the PIA to acquire two aircrafts with over 25 waivers which include severe technical flaws and critical aviation safety related issues.
Shah Murad, High Court advocate and aviation lawyer, while giving an expert opinion, said that according to rules and regulations of Civil Aviation Rules, 1994 the aircraft given on a wet lease by a foreign leaser to a Pakistani operator is required to be registered in Pakistan and must comply with the airworthiness certification, maintenance and inspection procedures stipulated by the Civil Aviation Authority (CAA), like any other aircraft registered in Pakistan. Moreover, domestic airlines are allowed to wet lease aircraft from foreign airlines under the rules contained in the Civil Aviation Rules, 1994 and Air Navigation Order No: 91.0016 in conformity with Article 83bis of the Chicago Convention, 1944. Pakistan has ratified Article 83bis of the Chicago Convention, 1944 on 27th May 1987 which provides for transfer of the functions and duties of the state of registry of the aircraft, in connection with Articles 12, 30, 31 and 32(a) of the Chicago Convention, which respectively address rules of air, radio licensing, certificates of airworthiness and personnel licenses, to the state in which the aircraft will be operated pursuant to lease, by an agreement between the two states. All bilateral agreements are required to be registered with ICAO so that the other States can be notified of such transfer and recognise it accordingly, he added.

2 COMMENTS

  1. After the unfortunate air blue crash last year it would have been slightly more wise on behalf of CAA to avoid signing up to corrupt blunders like these so soon after the tragedy. With civil society carefully eyeing the moves of CAA as well as the airlines, they have little room to err if they decide to play on the lives of pilgrims for the sake of their commissions.

  2. PIA needs new fresh MD who's not corrupt and who has no ties with the any Political Party. Who needs to understand aviation not another cockpit pilot.

    It will need to change or be Buried!

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