PIA plans to convert aircraft into dry lease

KARACHI: The Pakistan International Airlines (PIA) planned to convert recently acquired aircraft into dry lease after the airline gives an ample training to its crew on new technology, an official said on Friday.

“With the passage of time, our own personnel will be trained on new aircraft and subsequently all such planes will be converted into dry lease,” the airline’s spokesman Samir Nizami said. “More aircraft will be acquired on dry lease.”

In August, state-owned PIA obtained three Airbus A330 aircraft from Sri Lankan Airlines on a wet lease. The airline has deployed those aircraft on recently-introduced ‘Premier Service’ on Islamabad-London route.

Spokesman said the airline has so far received excellent feedbacks from passenger on its premier service.”  “The service will play a key role in helping PIA regain its market share,” Nizami said. “The airline’s share in domestic flights rose 22 percent and in international flights three percent during the current year.” 

He said airline’s passenger traffic saw a massive growth of one million in 2016. However, the spokesman said the premier service will take some time to become profitable. “It has improved the brand image of the national flag carrier and it will help the airline making more business in the coming years,” he added. 

Last month, PIA raised$130 million financing to fund its capital requirements and improve services. United Bank Limited Pakistan and Credit Suisse, Singapore office acted as the lead arrangers for the financing.

The airline said the facility reflects the confidence and trust of the international financing institutions on the operations of PIA and will be utilised by the corporation for its general working capital requirements and improvement in passenger services. The airline, last month, said it is evaluating an order for wide-body Airbus and Boeing jets to upgrade its ageing fleet. The airline is looking at Boeing 777X,  Airbus A330 and A350 models.  The airline said the A-330 was purchased “in a transparent manner,” strictly in accordance with the country’s procurement rules and on market price. “A-330 is a commercially successful wide body aircraft operated by various five-star and four-star airlines, including Qatar Airways, Singapore Airlines, Etihad Airways and Turkish Airlines and Lufthansa.”