Islamabad clears another $ 260 million bailout for PIA
Pakistan’s Economic Coordination Committee, which controls and finalizes the country’s major economic decisions and is chaired by Prime Minister Imran Khan, has approved a 44 billion rupee ($ 260 million) bailout for PIA – Pakistan International Airlines (PK, Islamabad Quaid-e-Azam Int’l) in the form of cash and sovereign guarantees, the government said in a statement.
Among other decisions taken on September 15 related to defense and economic issues, the cabinet-controlled committee approved the fourth bailout prepared under the current government of the Pakistani ruling party Tehreek-e-Insaf, and without a plan. viable business according to the media. like the Express Tribune.
Half of the additional help for the still-deficit national carrier comes in the form of a $ 130 million financial deal to meet its immediate debts, while the other half is to increase the guarantee limit by PIA of PKR 22 billion ($ 130 million) to help finance commercial banks.
“The ECC has reviewed and approved a summary submitted by the Aviation Division for GOP cash support as required by PIAC,” the finance ministry statement said. “The airline has seen a significant drop in revenue and cash flow due to the pandemic and unprecedented travel bans / blockages imposed by various countries. In addition, the ECC also approved the enhancement of an existing approved warranty allowing PIAC to overcome its financial challenges. “
The committee meeting came a day after the arrival at Islamabad Quaid-e-Azam Int’l of the first of the two A320-200s that PIA is taking delivery of this month, OE-IOR (msn 7784). The second will be OE-IOT (msn 7792).
OE-IOR was flown from Perpignan to Islamabad via Cairo Int’l on September 13-14, arriving at destination at 0602L (0102Z), according to ch-aviation analysis of Flightradar24 ADS-B data. According to PIA images posted on social media, it was still in its livery of Interjet (AIJ, Toluca), the struggling Mexican low-cost carrier to which it was delivered new in July 2017 as XA-UNO. The aircraft is dry-leased from Dublin-based lessor Seraph Aviation Management as part of its Gannet Aircraft 2 Ltd SPV, under the ch-aviation fleet ownership module.
As previously reported, PIA plans to dry-lease four A320-200s by the end of 2021, with the first two replacing two B777 wide-body aircraft in its fleet. Besides the newly arrived jet, the current narrow-body PIA fleet comprises eleven A320-200s, out of a total fleet of 31 aircraft.