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Thursday, November 14, 2024

Malaysian court orders release of PIA plane over lease dispute

State-run airline's passenger aircraft was held back in Kuala Lumpur over non-payment of dues 2 weeks ago

A Malaysian court on Wednesday ordered the release of a Pakistani passenger plane, which was held back in Kuala Lumpur over a lease dispute two weeks ago.

The plane was seized by the Malaysian authorities after a local court allowed the plane’s Dublin-based lessor, Peregrine Aviation Charlie Limited, to keep it grounded, following the non-payment of $14 million dues by state-owned Pakistan International Airlines (PIA).

The PIA, which had termed the Malaysian court’s judgment “one-sided” said it could not pay the dues on time because of a growing financial crunch caused by the coronavirus pandemic.

Read more: Watch: PIA pilots spot UFO in the skies of Karachi

Pakistan International Airlines (PIA) told the London High Court on Friday last week said that it has paid nearly around $7 million dues to Peregrine Aviation Charlie Limited for the two jets leased to it by AerCap

The hearing was related to the case of confiscation of PIA’s Boeing-777 by the Malaysian Authorities on Friday last week at Kuala Lumpur airport on the directives of the Malaysian Court.

The two sides informed the Kuala Lumpur High Court that they have reached an “amicable” settlement to the dispute, the Edge Markets publication quoted airline’s counsel Kwan Will Sen as saying.

“With this, the two Boeing aircraft operated by PIA would be released with immediate effect,” Kwan told the publication.

Read more: PIA pays $7 million due to recover aircraft from Malaysia

Abdullah Hafeez, the airline’s spokesman, also confirmed the development. The plane will be brought back to Pakistan as a regular flight on Jan. 29, Hafeez told Anadolu Agency. The two jets were leased to the PIA in 2015.

Anadolu with additional input by GVS News Desk