Aircraft reported missing was in fact sold, says PIA report

The Board of Directors of the Pakistan International Airlines Corporation Limited (PIACL) informed the apex court that the aircraft reported missing was in fact sold, according to a PIA report. It was informed that an investigation was being carried out by the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) on the issue.

The Board of Directors of PIACL on Wednesday filed a report about sale of A310 AP-BEQ. It submitted that the present management, which took over at the end of 2018 maintained close liaison with independent investigations already initiated and underway by the NAB and the FIA and had provided all the data/documents regarding the matter to the NAB and the FIA.

Fortnightly meetings with FIA are being conducted in connection with the instant investigation as well as other matters, which are under investigation.

According to the report, A310 aircraft registration No AP-BEQ Model 1992 was inducted in the PIA fleet on 12-12-1993. The aircraft was to complete its life span in 2016.

For selling the aircraft an international tender was floated on 31st July, 2016, but no bid was received. The second tender was floated on 09-11-2016 as a consequence of which one bid was received for airframe from M/s Mittel Deutsche Flughafen AG for Euro 47,500/. One bid was received from M/s Firefily of $157,500 for all the engines and Auxiliary Power Units (APU) that were mentioned in the tender.

As the aircraft had reached its retirement age, therefore, authorization for the last sortie to Germany was obtained from the Civil Aviation Authority of Pakistan (CAA).

After the filming was done on the plane in Malta, the plane flew to Leipzig, Germany on 5th December, 2016 where it remained positioned.

At the same time an agreement was made to charter the same aircraft to a UK-based company for use of the aircraft in a film being shot in Malta from 25-11-2016 to 05-12-2016, while it stopped over Malta en route to Leipzig, Germany, for an amount of Euros 210,000/- which was received by the PIACL.

In pursuance of the agreement, the then management allowed the aircraft to fly to Leipzig, Germany via Malta, where it was to be used in the shooting of a film.

The PIACL received Euro 210,000/- on account of the use of aircraft in the film.

It is submitted that the PIA pilots and engineers went with the aircraft to position it as per the plan, which included its filming as well.

The then Board of Directors of the PIACL ordered an inquiry into the matter on 22-12-2016.

The said inquiry was completed on 15th February, 2017 by the PIACL.

The said plane was positioned in Leipzig, Germany, and on account of the inquiry, an international tender was floated for its sale.

The Board authorized a fresh tender for the sale of aircraft, its engines etc and the APU.

As a consequence thereof, Leipzig Airport Authority bought the hull assembly of plane (minus engines and UPS) for $103,000/- whereas M/s ULS of Turkey offered $1.365 million for two engines and one APU (installed on the said aircraft) which was accepted by the Board of PICAL.

The then PIACL management negotiated with the Leipzig Airport Authority, which resulted in the settlement of parking charges of the plane at Leipzig Airport.

US$1.365 million was received from M/s ULS of Turkey and both transactions were completed on 7th June 2018.

The sale of aircraft was completed on 7th June, 2018.

Meanwhile, a three-judge bench, headed by Chief Justice Gulzar Ahmed, will resume hearing of Air Marshal Arshad Mehmmod Malik's appeal against the Sindh High Court (SHC) order restraining him from performing functions as the PIA CEO today (Thursday).