PIA to settle out of court $2m dispute on AerCap leases
Pakistan International Airlines is in talks to settle out of court $2m in outstanding aircraft lease payments in relation to two Boeing 777s managed by AerCap. Cirium fleets data shows that AerCap manages two 777-200ERs operated by PIA, and the lease on MSNs 32716 and 32717 commenced in 2015. Ireland-based Peregrine Aviation Charlie is the registered owner of both aircraft. At a 22 January court hearing in the High Court of London, the airline said it has paid around $7m, but $2m in relation to maintenance reserves remains in dispute. The parties have an agreement for $580,000 in monthly lease rentals and $315,000 per month for maintenance reserves, English-language local newspaper Dawn reported on 24 January. PIA is arguing that maintenance costs should not be invoiced, as the two aircraft were not in use for six months due to the Covid-19 pandemic. It reasons that maintenance reserves should be calculated according to flight cycles. The lessor takes the view that the contract’s force majeure clause does not cover the pandemic, and that the airline must pay regardless of how much the aircraft are flown. The hearing was adjourned on the same day, as both parties are seeking to settle the issue out of court.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2021-01-27/unaligned/pia-to-settle-out-of-court-2m-dispute-on-aercap-leases
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PIA to settle out of court $2m dispute on AerCap leases
Pakistan International Airlines is in talks to settle out of court $2m in outstanding aircraft lease payments in relation to two Boeing 777s managed by AerCap. Cirium fleets data shows that AerCap manages two 777-200ERs operated by PIA, and the lease on MSNs 32716 and 32717 commenced in 2015. Ireland-based Peregrine Aviation Charlie is the registered owner of both aircraft. At a 22 January court hearing in the High Court of London, the airline said it has paid around $7m, but $2m in relation to maintenance reserves remains in dispute. The parties have an agreement for $580,000 in monthly lease rentals and $315,000 per month for maintenance reserves, English-language local newspaper Dawn reported on 24 January. PIA is arguing that maintenance costs should not be invoiced, as the two aircraft were not in use for six months due to the Covid-19 pandemic. It reasons that maintenance reserves should be calculated according to flight cycles. The lessor takes the view that the contract’s force majeure clause does not cover the pandemic, and that the airline must pay regardless of how much the aircraft are flown. The hearing was adjourned on the same day, as both parties are seeking to settle the issue out of court.<br/>
