ISLAMABAD: The Pakistan International Airlines (PIA) has had to reduce its flights by 23 per cent because nine of its 39 aircraft have been grounded for want of spare parts which are to be supplied by a Dubai-based US firm, Transworld, under a controversial multi-billion-dollar agreement.
Under the deal, Transworld undertook to provide a $700 million credit line to PIA for 90 days. However, the agreement has turned out to be a liability as the airline has had to open a $2.5 million Letter of Credit (LC) (release of advance payment through bank) in favour of Transworld for the supply of spare parts for the grounded aircraft.
Nine planes grounded because of non-availability of spare parts before the start of PIA’s Haj operations are three 747/300 or 743 aircraft, one ATR-42, three A-310, one B-777 and one 737 aircraft.
The grounding of planes has badly affected the flight schedule. However, PIA spokesman Sultan Ahmed said that only two aircraft had been grounded for want of spare parts.
“At present two aircraft are under planned maintenance and will start their operational flights from November 30. Aircraft check is a regulatory requirement and carried out on regular intervals on all aircraft of PIA fleet,” the spokesman said.
He said the grounding of an aircraft meant that it had lost its airworthiness and could not fly anymore, adding that all 39 aircraft in the PIA fleet airworthy. “All the aircraft undergo a scheduled maintenance check under a phased programme in PIA’s engineering department and it was a normal practice in the aviation industry across the world,” he remarked.
The government awarded a controversial multi-billion-dollar contract to Transworld in September for purchase of spare parts, consumable materials, chemicals and other items for PIA planes.
The firm is also to provide $700 million credit facility to PIA for 90 days. It is for the first time in the history of the national flag carrier that its management has been barred from purchasing spare parts from its 700 registered enlisted vendors and sole rights for such purchases now rest with the firm called Transworld Aviation.
Meanwhile, a poster recently prepared by Air League of PIA Employees Union said that PIA had issued an order for transfer of $2.5 million in the bank accounts of Transworld through the LC for purchase of spares instead of supplying spare parts to the airline on 90 days credit.
However, the PIA spokesman said: “Opening of the LC is a prescribed requirement for purchase of spares or other goods from the market or from a contract supplier. Similarly, spares purchased from Messrs Transworld also require opening of an LC while the credit line of $700 million is being used.”
A senior PIA official told Dawn that since the signing of the agreement between PIA and Transworld about 400 orders had been placed with the US firm for supply of spares for the grounded aircraft, but it has so far failed to meet even a single order.
The PIA spokesman said: “No such inventory is pending regarding purchase orders with PIA procurement and logistics department. In fact, placing of orders is a continuous process and the supply chain is being satisfactorily maintained.”
It has also been learnt that international companies ready to provide spares to PIA within 24 hours in case of emergency, are now reluctant to give this facility to Transworld.
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