- PIA spokesperson Abdullah Hafeez Khan says PIA “is contesting the case in the UK but there has been no ruling so far”
- Provides that PIA was making lease funds correctly since 2015 however a dispute arose in 2020 because of the coronavirus pandemic
- Phrases Malaysia impounding airplane “a radical step”, says additional motion on Monday
KARACHI: A Malaysian court docket’s ruling over which authorities impounded a airplane of the Pakistan Worldwide Airways (PIA) yesterday “would have been different had the PIA’s stance been considered”, the nationwide service’s spokesperson stated Friday.
Talking in Geo Information programme “Aaj Shahzeb Khanzada Kay Sath”, PIA spokesperson Abdullah Hafeez Khan termed the impounding of the airplane a “very unique and surprising incidence”.
Khan stated it was widespread for cost disputes between two events to come up and courts to be approached, with worldwide agreements usually stating clearly which legal guidelines would govern ought to a battle come up in a case.
Within the case resulting from which the PIA airplane was impounded in Malaysia, the airline “is contesting the case in the UK but there has been no ruling in this case”.
“All of a sudden, [the private company] obtained an ex parte decision from Malaysia — which means that neither was the PIA’s viewpoint heard nor was it served any notice — and it’s shocking because the PIA operates in Malaysia as a registered organisation, has assets, presence, and registered offices there, and its sales go in their bank accounts,” he stated.
“We believe that if the PIA’s stance had been heard, the decision might not have been what was announced [earlier today].”
The PIA spokesperson defined that the corporate in 2015 obtained two planes — Boeing 777-200 prolonged vary (ER) planes — by way of “a lease through tender from the company that has initiated the case against us”.
“Before us [the PIA], these planes were with VietJet Air, which has caused confusion that these planes perhaps belonged to Vietnam. However, that’s not the case and the company we got them from is Dubai-based.”
The PIA consultant underlined that the nationwide service was making lease funds correctly since 2015 however a dispute arose in 2020 because of the coronavirus pandemic and the following lockdown.
“Some terms [of the lease payments] were not adequate given the current situation and we tried to convince them on those terms. They obviously didn’t agree, took the legal course of action, and lodged a case against the PIA in the UK in October 2020. The PIA got a notice against it and our legal team started contesting it.”
Khan talked about that for the reason that subsequent case listening to was scheduled within the UK on January 22, “all of our attention was focused on contesting that case and we were not expecting that they would approach Malaysian court to obtain an order to impound [our] plane”.
“This is a radical step. Normally, airlines and leasing companies do not go this far — to take such an extreme action — unless the airline has defaulted or some other conflict arose.
“Nevertheless, now that this matter has come up and is within the court docket, it is going to be resolved by the court docket and for the reason that incident occurred over the weekend, additional motion will probably be taken on Monday.”
Khan added that the PIA would contest the case within the Malaysian court docket.
“A lease has many components, including rent and maintenance reserve, and the more a plane flies, the more the payments are to the maintenance reserve.
“Nevertheless, for the reason that COVID-19 pandemic grounded the planes, we thought the funds weren’t justified as there was no airplane utilization and the planes weren’t ageing.
“A dispute arose and we were talking to [the company] about it and we thought that due to coronavirus, there’s a force majeure clause — beyond your control or act of God — and conditions change. So we claimed that the COVID [pandemic] is an act of God — such a pandemic occurs maybe once in a 100 years — and we said that that clause should be invoked in these circumstances,” he stated.
Khan stated the difficulty of lease was not since 12 years — as Particular Assistant to the Prime Minister on Political Communications, Dr Shahbaz Gill had claimed — “but this plane joined the PIA fleet in 2015 and will leave in 2021 as the lease tenure ends in July 2021”.
Khan added that at current, no out-of-court settlement was being thought-about for the reason that case was being contested within the UK court docket. “The PIA contacted their commercial team and has voiced regret that this action was neither okay nor should have been taken at this time,” he added.