LONDON: PIA, that is attempting to resolve the payment dispute out of court with aircraft broker Peregrine Aviation Charlie Ltd, will have to pay $2 million more as part of an outstanding payment for an aircraft lease agreement with the world’s largest aircraft lessor AerCap based in Dublin.
According to details, a PIA’s aircraft was seized in Malaysia as Peregrine Aviation Charlie Limited brought a case against the airline to pay dues amounting to $9m.
It may be recalled that PIA entered a lease agreement with this company which covered payments for lease rental, maintenance reserves and insurance of two aircraft (a Boeing 777 and a Boeing 777-200ER).
PIA had agreed to pay $580,000 as lease rental charges per month and $315,000 as maintenance charges per month.
PIA’s stand is that maintenance reserves are calculated according to the flying time. And since the seized aircraft remained grounded during the prevailing pandemic for half a year the maintenance cost should not be invoiced.
Nevertheless, the aviation company claims that PIA owe it $2m even if the plane was not used for six months. It says the agreement does not cover Covid-19 as a force majeure which limits liability. It seems that PIA will have to pay $2m more to get the aircraft back.
