Corruption-marred PIA pays $2m to Sri Lankan airlines

Pakistan International Airlines (PIA) has paid US$2 million to Sri Lankan Airlines recently in the head of delayed payments and lease installments inclusive of extra flying hours of A330 aircraft wet leased to PIA in August 2016, disclosed a senior official of the national flag carrier.

The settlement of arrears was made, more than four months after the Airbus A-330 aircraft return to Sri Lankan Airlines, he said.

He said Sri Lankan Airlines was charging PIA a hefty amount of $8100 per hour under the lease agreement as the normal charge is about $6000 per hour. Someone in the middle has got a ‘massive cut’ from this deal, he added.

In four months, PIA had reportedly faced a financial loss of the inauguration of its premier service to London, he revealed.

The PIA administration had to pay $8,000 per hour a day for six months for the aircraft which was taken over on lease at a cost of over $19 million.

Former Chief Executive Officer (CEO) of PIA, a German national Bernd Hildenbrand has yet not returned to the country to face corruption charges after being permitted to go abroad by the government of Pakistan.

He was removed from his post in April on the charges of causing the PIA losses worth millions of dollars due to alleged corruption in the deal of Sri Lankan Airlines.