Pakistan International Airlines (PIA) has paid about £400,000 in cash to two UK travel agents, after losing a case against them for not paying commission for selling tickets, Secretary Aviation and Chairman PIA Mohammad Ali Gardezi told Business Recorder here on Friday. The London High Court had directed PIA to compensate two UK travel agents after it stopped paying them commission for selling its tickets.
The airline was sued by travel agents and consequently the court ruled that the airline should pay about £400,000 as compensation amount for the tickets sold since 2010.
According to media reports, travel agent Riaz Hussain Syed had alleged that PIA asked him to charge extra money from passengers instead of from the airline, adding that he inquired from PIA, "If the price printed on the ticket is £500 and I ask a passenger for £35 more why he/she would be ready to pay the extra amount? PIA wanted us to charge the passenger the money," according to Hussain.
Chairman PIA Mohammad Ali Gardezi said the case was fought rigorously in the London High Court against travel agents. "We tried our level best to settle the matter out of court, but failed to convince the travel agents," Gardezi said.
The London High Court has given a similar decision in an identical case in favour of travel agents against major international airlines. The court made the decision on the basis of precedent, said PIA chairman, adding that it was a court decision and there was no other way but to accept it. Following the court decision PIA paid the compensatory amount to travel agents, Gardezi maintained.
Chairman PIA further said that to lessen the financial crisis and introduce more flights, a comprehensive plan had been devised: according to which ten airplanes would be added to the fleet of PIA by next year. All necessary stages, including tender and shortlisting, had been completed and all these airliners would be inducted on lease. The induction process is expected to start in April next year and would be completed within 3-4 months, Gardezi maintained.
On November 21, 2013 (Thursday) PIA obtained two relatively new Boeing 737-800 aircraft on lease from a Turkish airline, while two others are expected to arrive next week. However, Chairman PIA said that all these are hired only for two months (expected to extend to four months) on lease. The new airliners are fuel-efficient 189-seat aircraft and are expected to operate at an average 12-13 hours per day. The move would not only help in increasing flights on major routes but generation of a handsome revenue is also expected, the Chairman maintained.