ISLAMABAD, Feb 2: Pakistan International Airlines is reported to have deferred till March its decision to sell six Airbus A- 300B4 aircraft as they are still in use in the Haj operation.
The aircraft, worth $50 million, will be grounded after the operation ends, according to a PIA official.
The decision to sell is reported to have been taken despite an internal evaluation claiming the aircraft were airworthy and more profitable than the six A-310 aircraft taken on 10-year lease by the management as replacements for the jets to be grounded.
The decision to ground and sell the A-300B4s has come after PIA installed the latest GPS navigation system worth $2 million each on the aircraft. The per seat and per kg freight cost of the A- 300B4 is said to be considerably less than that of the A-310.
With lives of up to 30 years, global aviation experts estimate that each A-300B4 in PIA's inventory is worth at least $9 million and has dynamic operational feasibility on destination routes of the Middle East and Europe.
The A300-B4s in PIA's inventory said to be 18 years old while the A-310 taken on lease are 10 to 12 years old. Compared to the low maintenance cost of the A-300B4, it is estimated that the six A-310 aircraft leased by the PIA would cost the national exchequer an amount of $41.4 million per year till the lease amount is paid over the next 10 years.
Moreover, sources say, PIA will have to purchase 10 to 12 small-body passenger aircraft for its fleet in place of the A- 300B4 aircraft, necessitating new deals to overcome a shortage created by the management's own decisions. The A-300B4 has a passenger capacity of 250 and can carry seven tons more cargo than the newly leased six A-310 aircraft, said a source.
PIA's own internal documents show that post-facto approval of its board was obtained after a decision had already been taken to change the fleet plan. "...the decision to change the fleet plan was taken a few months earlier than the date of the board approval as also evidenced from the minutes of the audit committee held on October 9, 2003, and the corporation's maintenance programme for the fleet," according to para 11.1.2 of the auditor's report for the year 2003.
Sources within the organization claimed that last year, PIA leased A-300 MNG aircraft from a Turkish company and paid an amount of $8 million for a three-month lease. By retaining the A300-B4 aircraft, PIA could save on not only future Haj operations but also on regular flights on Gulf and European routes.
Dawn gave a list of 11 questions to PIA for a response so that the organization's version could be accommodated in the report. PIA's public relations general manager confirmed receiving the questions on Jan 24, but said the management would not give an official response to the questions which she dismissed as irrelevant. She said she had contacted the relevant department and stood by her 'reply'.
PIA denies deferring A-300B4 sale
By Our Staff Reporter
ISLAMABAD, Feb 8: Pakistan International Airlines said on Monday it would sell A-300B4 fleet in March as scheduled, and had no intention to defer the sale.
Commenting on Dawn's Feb 3 report headlined 'PIA defers decision to sell aircraft, the airline said in a press release that the decision to sell the aircraft had been taken after careful consideration.
PIA said that the maintenance cost of the A-300B4 fleet was high as it had an average life of 24 years, and not 18 as mentioned in the report.
The press release said: "In order to straighten the records one may also point out that the cost of the GPS system is to the tune of two million dollars for the fleet and certainly not per aircraft as stated in your report."
"Another major inaccuracy that needs to be pointed out is that the lease rental for the six A-310 aircraft is US$15 million and not US$41.4 million per annum. Likewise, the lease rental of passenger aircraft acquired from MNG was less than US$2 million. It may also be mentioned that the cargo capacity of both the A- 300B4 and A-310 is comparable.
