PIA to Invite Bids for Dry Lease of Ten Narrow-body Aircraft

[Abbas Ali]

A bidding invitation will be published soon in newspapers for dry lease of ten narrow-body aircraft, according to statement of Special Assistant to Prime Minister on Aviation Shujaat Azeem.

Abbas

[Abbas Ali]

Pakistan International Airlines (PIA) will invite tenders next week to acquire 10 narrow-body planes on dry lease.

Officials told Dawn on Monday that the national carrier has finalised a plan to acquire 10 narrow-body aircraft and the process would be completed by this Sept/Oct.

Source: http://www.dawn.com/news/1083156/pia-to ... 0-aircraft

Abbas

[Abbas Ali]

Economic Coordination Committee (ECC) meeting today asked Chairman PIA to present a report about airline's plan to dry lease ten narrow-body aircraft.

The report should be presented before ECC in next 30 days, according to PTV News.

Probably PIA representatives during the meeting sought ECC financial assistance like government guarantees for obtaining bank loans for acquisition of these aircraft on dry lease.

Abbas

[Amaad Lone]

When spending the precious bail out funds PIA needs to re-define its role.

Does it want to be an international airline carrying Pakistanis to the U.S, U.K and Europe along with regional and Far East routes??

Or does it want to become a regional carrier for Pakistani labor like Shaheen Air?

As a regional airline PIA will never survive against the low cost Shaheen Air, which is no longer an airline operating 30 year old 737-200s. Shaheen is now an airline with a larger fleet and much more modern fleet, with less employees to cope with.

PIA now not only needs to think of the Arab airlines serving Pakistan, but also Pakistani airlines serving the regional routes.

In a couple of years the entire A310-300 fleet will need to go, and that replacement alone will cost PIA atleast $800 million.

The best bet is code share with an international airline out of Europe to North America. Like the former plan with Turkish Airlines.

PIA can keep New York and Toronto in North America and some U.K routes, but without code share I dont see PIA beating the twice daily service of Emirates and Qatar and Etihad to Northern Pakistan.

[imiakhtar]

The tender for this lease requirement has been placed on the pia website. See here:

http://www.piac.com.pk/PIA_Business/pia ... nders.aspx

[Abbas Ali]

Bidding invitation in today's (February 5) newspaper.

Pakistan International Airlines (PIA) invites "sealed bids" from interested parties for the dry lease of upto ten (10) narrow body aircraft as below:

Lease Period: 8 Years
Seating Configuration: Minimum 175 seats
Delivery Schedule: Immediate but no later than 30th July, 2014
Year of Manufacture: 2010 or later

Bids will be opened on March 7, 2014.



Abbas

[Hamad]

Thats a nice looking bid invitation

[Amaad Lone]

Besides domestic trunk routes like Karachi-Lahore, Karachi-Islamabad Karachi-Peshawar, Karachi-Faisalabad, and Karachi-Quetta there are around 14 cities where PIA can operate these 10 narrow body aircraft.

Abu Dhabi (Etihad base)
Bahrain (Gulf Air base)
Bangkok (Thai base)
Dhahran (Saudia, Shaheen Air)
Dhaka
Doha (Qatar Airways base)
Dubai (Emirates, Shaheen, Air Blue)
Jeddah (Saudia plus Shaheen)
Kathmandu
Mumbai
Muscat (Oman Air, Shaheen Air)
Kuwait (Kuwait Airways, Shaheen Air)
New Dehli
Riaydh (Saudia Shaheen Air)

Will PIA be able to compete with the low fares of Shaheen Air??

Most of these routes already face excess capacity from Gulf & Middle East carriers.

I dont see how these ten narrow body aircraft are going to help PIA regain its foot hold in a market swamped with capacity from Middle East and domestic carriers.

[inducedrag]

PIA will come in genies book for breaking the number of tenders published with no decision

[Vaqar Khan]

PIA will come in genies book for breaking the number of tenders published with no decision

Though "genies book" looks quite appropriate for PIA but perhaps you meant Guinness Book??

[Abbas Ali]

Bids opened today.

PIA has received offers from two different companies for leasing ten narrow-body aircraft, according to statement of airline's chairman on news media.

Abbas

[Abbas Ali]

Bidders Offer Airbus A320 and Boeing 737-800 Aircraft to PIA

Karachi, March 7, 2014: The bidding parties included Qatar Aviation Lease Company (QALC) and KL AeroParts.

The bid offer of Qatar Aviation Lease Company includes eight Airbus A320 aircraft. Four aircraft manufactured in 2011 and four aircraft manufactured in 2012.

The second bid offer received was of KL AeroParts for ten Airbus A320 and ten Boeing 737-800 aircraft manufactured in 2014.

The bidders have committed delivery by last week of July 2014.

The bids will be evaluated within three to four days and posted on Public Procurement Regulatory Authority (PPRA) website. After conducting evaluation process within next ten days, the recommendations will be forwarded to PIA Board of Directors for approval followed by issuance of Letter of Intent (LoI) to the selected bidder. The financing of these aircraft will be done by PIA’s own resources and partially with the help of the government.

Chairman PIA said that the aircraft acquisition was approved by Economic Coordination Committee (ECC) and PIA Board of Directors.

Chairman PIA said that in future PIA will be having three types of aircraft i.e. ATR, Boeing 777 and Airbus A320 or Boeing 737-800.

Source: PIA Press Release (March 7, 2014)

[taha_imran4]

It's surprising they got offers for exactly what they were looking for. Knowing that Shujaat Azeem is calling the shots, I think they'll go for 737-800s.

[altitude]

2nd bidder is offering A/c of 2014 ... seems good

[Abbas Ali]

Probably aircraft offered by KL AeroParts will be delivered brand new directly from aircraft maker's plant.

Abbas