Sri Lankan Airlines to write off the outstanding payment due from PIA

Sri Lankan Airlines to write off the outstanding payment due from PIA

10 October 2018 09:09 am

Pakistan International Airlines (PIA) has not paid money for Sri Lankan Airlines for the training provided to cockpit and cabin crew of the Airbus A330-300 aircraft it wet-leased from debt-ridden SriLankan Airlines last year, officials connected to the deal said.

The training was carried out in Colombo and the amount due for the national carrier was in the region of US$100,000.

Top PIA official has taken the responsibility of paying the money but so far no payment had been made official sources said.

Sri Lankan Airlines is exploring the possibility of taking legal action to recover their dues from the PIA. The PIA has ignored the letter of demand send by former CEO of the Sri Lankan Air lines Suren Ratwatte.

The present management of the Sri Lankan Airlines will most probably write off the PIA’s outstanding payment for crew training amounting to US$100,000 , officials said.

But the Airbus A330-300 aircraft tainted with corruption and kickbacks is still under investigation both here in Sri Lanka and Pakistan .

In fact PIA has leased aircraft from a Vietnamese airline and has fallen back on those payments too and the PIA staff has still not received their salaries for the month of November, sources said.

Initially a verbal discussion had taken place for PIA to lease 3 A330 aircraft from Sri Lankan and the aircraft were prepared for the lease...However as there was no contract only one aircraft was sent last year.

PIA has paid US$2 million to SriLankan Airlines as delayed payments and lease installments inclusive of extra flying hours of A330 aircraft wet leased to Pakistan’s national carrier in August last year.

This settlement of arrears was made, more than four months after the return to SriLankan Airlines of the Airbus A-330 aircraft.

The wet lease deal by Sri Lanka ’s national carrier at an astronomically high rate is shocking; Pakistan media reports quoted a PIA official as saying.

SriLankan Airlines was levying PIA a rate of $8100 per hour under the lease agreement which is a very high amount, he said. The normal charge is about $6000 per hour.

Someone in the middle has got a ‘massive cut’ from this unfavourable deal for PIA, the Pakistani official said.