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ECC approves leasing of five A320 aircraft for PIA

04 December, 2013

ISLAMABAD: The meeting of Economic Coordination Committee of the Cabinet (ECC) approved the lease of five A320 aircraft from the 10 A319/320 aircraft short-listed on merit based on their combined score tabulated on their financial and technical parameters.

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ISLAMABAD: The meeting of Economic Coordination Committee of the Cabinet (ECC) approved the lease of five A320 aircraft from the 10 A319/320 aircraft short-listed on merit based on their combined score tabulated on their financial and technical parameters. The remaining five aircraft were rejected because of their low combined score.

The ECC meeting was held at the Prime Minister's Office under the chairmanship of Federal Minister for Finance Senator Ishaq Dar on Tuesday.

The ECC approved the dry lease of five A320 aircraft with the direction that the lease period of the present aircraft hired on wet lease may be extended so that a pool of at least 10 aircraft be maintained for convenience of general public and passengers. The ECC also authorised Pakistan International Airlines (PIA) to initiate the bidding for tender of additional five aircraft which may be inducted by June 15, 2014. The finance minister observed that the finalisation of this lease by PIA will not only rehabilitate its international credibility but also improve its image.

The aviation secretary informed the ECC that due to earlier approval of ECC in its meeting on July 12, 2013 and release of Rs 12.7 billion, PIA was able to add six additional aircraft which raised the number of operational aircraft from 20 to 26. This, he said had increased schedule integrity (in time) and no complaints of delay was reported during Haj operations which was smooth after many years. The aviation secretary also informed ECC that the loss of PIA had reduced from Rs 3.3 billion to Rs 1.5 billion last month.

The PIA management stated that the improvement in the performance, service and financial health of PIA was a result of the regular financial support and continued oversight by the present government.

The ECC approved providing guarantees to Exim Bank of USA and Islamic Corporation of Insurance and Export Credit (ICIEC) for providing financing for servicing and repairs of nine bowing 777 aircraft which are the main stay of PIAC fleet subject to approval of financing terms by the Finance Division.

The finance minister observed that generally Exim Bank does not provide loans for repairs and maintenance and this reflects the confidence of the international institutions in the economic policies of the present government.

The ECC also approved extension of validity of existing guarantees for PIA by the government of Pakistan for term loans of Rs 33.50 billion until June 30, 2014. The ECC directed that these term loans be converted into new Term Finance Certificates at the earliest in order to retire the said guarantees. The ECC expressed concern over reports in the Media regarding increase in the prices of essential commodities.

The ECC directed the provincial governments to further strengthen monitoring of prices and check hoarding and profiteering. The ECC expressed the hope that the provinces shall share information and follow best practices to provide relief to the common man in maintaining fair prices of essential commodities. Work on the revival of Executive Magistracy may be expedited by the committee already constituted for the purpose so that a more effective check can be made against profiteers and hoarders, observed the ECC.

End.


 
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