KARACHI: On Wednesday the Malaysian authorities have released the (PIA) Pakistan International Airlines plane which was seized after the national flag carrier failed to clear the dues of the leasing firm.
The airline has reached an agreement with the leasing firm for an out-of-court settlement after which the court ordered to release the plane, a PIA spokesperson said.
He said, “The airline will bring the plane back to the country as a commercial flight for which PIA staff is being sent to Malaysia.”
On Jan 15 Malaysian authorities seized the Boeing 777 aircraft after a court allowed an application by the plane’s lessor, Peregrine Aviation Charlie Limited, to keep it grounded pending the outcome of a $14 million lease dispute with PIA in a UK court.
According to a lawyer representing the airline The Kuala Lumpur High Court ordered the immediate release of the plane after both sides said they had reached an amicable settlement to the dispute, involving two planes leased to the PIA.
PIA counsel Kwan Will Sen said, “Peregrine has agreed to withdraw its suit against PIAC (Pakistan International Airlines Corp) and for the injunction orders to be set aside.”
The two jets were leased to PIA by Dublin-based AerCap , the world’s largest aircraft lessor, in 2015. They are part of a portfolio that AerCap sold to Peregrine Aviation Co Ltd, an investment unit of NCB Capital, the brokerage arm of National Commercial Bank SJSC, in 2018.
Last week, the PIA informed a judge at the London High Court that it has paid around $7 million (Rs1.124 billion) to the Peregrine Aviation Charlie Limited in the case pertaining to two jets leased to it by the company.
During the hearing, lawyers for both the PIA and the airliner had sought an adjournment to a later date in the hope that the full amount will be paid through an agreement without the court issuing any order against the PIA.