akerosid
29th Apr 2001, 12:24
FYI . . .
KARACHI, April 28 (Reuters) - State-run Pakistan International Airlines (PIA) (PIA) said on Saturday it had extended the lease of five Boeing 747-300 aircraft from Cathay Pacific Airways Ltd (0293) for five years.
"The airline has signed an agreement for the renewal of the hiring contract of five aircraft from Cathay Pacific and...will save more than 300 million rupees per year on account of rental cost and maintenance," a statement by the airline said.
The financial terms were not disclosed.
PIA, the biggest airline in Pakistan with more than 40 planes and 22,000 employees, acquired five Boeing 747-300 aircraft on an operating dry lease basis from Cathay Pacific in April 1999.
The first lease was for two years, which was extended by four months this year to July 2001. The airline paid $43.68 million per year to Cathay for the replacements for six ageing Boeing 747-200 planes.
"The agreement, signed in Bangkok last Thursday, gave PIA unilateral option to purchase these aircraft during or at the end of the lease term at a pre-determined price," the statement said. The price was not disclosed.
The statement said under the contract, PIA alone has the option to terminate the lease after two years, with a 12-month notice period.
The airline, which is on the privatisation list of the military government, suffered a 3.3 billion rupee ($55 million) net loss in 2000 and has total liabilities of 24 billion rupees.
KARACHI, April 28 (Reuters) - State-run Pakistan International Airlines (PIA) (PIA) said on Saturday it had extended the lease of five Boeing 747-300 aircraft from Cathay Pacific Airways Ltd (0293) for five years.
"The airline has signed an agreement for the renewal of the hiring contract of five aircraft from Cathay Pacific and...will save more than 300 million rupees per year on account of rental cost and maintenance," a statement by the airline said.
The financial terms were not disclosed.
PIA, the biggest airline in Pakistan with more than 40 planes and 22,000 employees, acquired five Boeing 747-300 aircraft on an operating dry lease basis from Cathay Pacific in April 1999.
The first lease was for two years, which was extended by four months this year to July 2001. The airline paid $43.68 million per year to Cathay for the replacements for six ageing Boeing 747-200 planes.
"The agreement, signed in Bangkok last Thursday, gave PIA unilateral option to purchase these aircraft during or at the end of the lease term at a pre-determined price," the statement said. The price was not disclosed.
The statement said under the contract, PIA alone has the option to terminate the lease after two years, with a 12-month notice period.
The airline, which is on the privatisation list of the military government, suffered a 3.3 billion rupee ($55 million) net loss in 2000 and has total liabilities of 24 billion rupees.