KARACHI: Pakistan International Airlines (PIA) has annulled the expensive lease arrangement, which was made in 2015 for acquiring ATR aircrafts. PIA spokesman confirmed that the airline cancelled ATR aircrafts acquired on an expensive lease arrangement.

He said that PIA ATR-72 aircrafts were high on operational cost and expected market value resultantly making the flight operations non-profitable and added that these aircrafts were acquired on lease in the year 2015 and were higher than the present market price but due to the long-term agreement, PIA was unable to return them earlier.

Furthermore, he said that PIA management reviewed the lease agreement thoroughly and benefited from a clause in the lease agreement during Covid-19 flights suspension on the instructions of CEO, PIA.

The first ATR-72 aircraft returned having registration number APBKY departed from Karachi for Johannesburg, South Africa. While three other ATR-72 will be returning soon. PIA has planned to induct new aircraft in its fleet to improve its service.

Copyright Business Recorder, 2020