What about PIA order for Five Boeing 777-300ER Aircraft?

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Usman 747
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Re: What about PIA order of PIA B777-300 ER

Post by Usman 747 »

A bit off topic but I heard that Malaysia Airline Plans to sell 4 777-200ER'S. Maybe they could agree on a lease deal of sort?
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Re: What about PIA order of PIA B777-300 ER

Post by GEnx »

I guess MAS 777s are powered by trent 800s. Not suitable for PIA
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Re: What about PIA order of PIA B777-300 ER

Post by boeing787 »

Umar Farooq wrote:No chance of NEW aircraft induction.

PIA to acquire 12 planes on dry lease.

ISLAMABAD: The Senate was informed on Thursday that the national flag carrier would soon be acquiring 12 aircraft on dry lease.

Minister of State for Parliamentary Affairs Sheikh Aftab Ahmad told the house that nine A320 narrow-body, short-to-medium-haul jet airliners and three ATR-72 twin-engine, turboprop, short-haul regional aircraft would be acquired.

The Pakistan International Airlines had no plans to purchase new aircraft, he said, adding that it had acquired 13 aircraft on wet lease and six on dry lease since March 2014. At present, four A320 and two ATR-72 planes acquired on dry lease were in operation.

The minister said a wet lease was an arrangement under which a company provided an aircraft along with crew, maintenance and insurance and the payment made was calculated on hours operated. It usually is a short-term arrangement.

A dry lease is an arrangement whereby an aircraft is provided without crew, maintenance and insurance to an airline on payment to be made on monthly or yearly basis. It is usually a long-term arrangement.

Thirteen aircraft had been obtained on wet lease between March and November 2014 to meet short-term capacity requirement of PIA, he said.

They were returned on completion of the lease term this month. Two of these planes were returned on May 13.

Answering a question, Sheikh Aftab said the profit and loss account for the period ending on June 2014 showed reduction in losses of the PIA to the tune of Rs8.25 billion when compared to the corresponding period of 2013. The PIA earned an operational profit of Rs2.14bn in the first quarter of 2015.

Source: Dawn.com
The article says 9 A320s in addition to be added. 2 arrived since March, so 7 more. 6 are coming from ongoing tender. Where is the last A320 coming from? Perhaps PIA will acquire 11 a320s from the choice of 16 in ongoing tender?

So by 2017, we will have 8 777 (1 will retire after 10-year lease maybe), 5 new ones and 3 on lease. Total 16 b777. Then we will have 12 A320s. 5 ATR-52/ 5 ATR-72. So expect to have 38 aircrafts going into 2018 (16+12+10).

This assuming we don't add more aircrafts through new tenders apart from current ones and retire A310s/b747. Perhaps PIA will do that so as to save money between now and 2017 so they have funds to pay boeing for the 5 777s and even exercise 5 options if still available.
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proudPakistani
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Re: What about PIA order of PIA B777-300 ER

Post by proudPakistani »

Reply of Shujaat Azeem on Twitter.
amir, we are discussing with boeing and exim how to finance the A/C. Looking at 777X or 787-9
https://twitter.com/shujaatazeem/status ... 9174411264
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Re: What about PIA order of PIA B777-300 ER

Post by Humsafar »

In the American Congress, there is currently debate over whether to renew the Ex-IM Bank. This uncertainty could potentially complicate the process.

I personally hope PIA opts for the B787-9.
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Re: What about PIA order of PIA B777-300 ER

Post by Abbas Ali »

Federal Investigation Agency (FIA) is investigating Rs 8.6 million scam under which PIA planned to acquire five Boeing 777-300ER aircraft in violation of Public Procurement Regulatory Authority (PPRA) rules.

Info Source: http://www.brecorder.com/top-stories/0/1219560/

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Re: What about PIA order of PIA B777-300 ER

Post by Abbas Ali »

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According to a news channel, FIA has written letter to PIA management with complaint that it is not cooperating in investigation of Boeing 777 procurement deal. The airline is not providing copies of record/files of the deal. FIA is also seeking record of PIA Board of Directors meeting for that deal.

Also found this old news report from April 2015:
Kickbacks feared in Boeing 777 PIA jets

Regarding the case of the Boeing 777 scam in the national carrier, officials mentioned the names of various senior personnel, including Ch Ahmed Mukhtar and Lt General (retd) Naeem Khalid. The case involved $8.5 million mismanagement as there were serious violations committed by higher-ups who did not observe rules.
Source: http://tribune.com.pk/story/875063/inte ... ultimatum/

Related document shown on a news channel recently. I had posted it in another topic (viewtopic.php?f=1&t=23193&p=164044#p164044) last month.

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Through a proper bidding invitation, aircraft leasing companies could also have participated in bidding process to offer PIA five brand new Boeing 777-300ER aircraft at good prices.

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Re: What about PIA order of PIA B777-300 ER

Post by Abbas Ali »

FIA letter to PIA management was shown by DAWN News channel. The letter dated October 27, 2015, was sent to PIA Managing Director.

News channels did not mention what kind of reply (if any) was sent by PIA management to FIA.

The case is investigated by FIA Corporate Crime Circle - Karachi.

Excerpt from FIA letter to PIA Managing Director:
You are required to provide all original documents regarding purchase of Boeing 777 aircraft such as noting portion, approvals from the competent authority, payments, approval of such payments, noting portion for such payments and specifically payment of US $1,018,805 (USA Dollars one million eighteen thousand eight hundred and five) as deposit against the proposal acceptance for blocking slots/options of five Boeing 777 aircraft in 2015.

If payment of US $1,018,805 (USA Dollars one million eighteen thousand eight hundred and five) was deposited against the proposal acceptance for blocking slots/options of five Boeing 777 aircraft in 2015, what is the status of this payment either forfeited by Boeing Company or refunded back to PIA. Provide all documents related to this payment in seven days after received of this letter.

It is pertinent to mention here that matter's status is urgent therefore you are requested to provide the requisite record at the earliest.

In case of non-compliance, proceedings under Section 175 of Pakistan Penal Code (PPC) shall be initiated against you in appropriate court of law.
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PPC section 175
175. Omission to produce document to public servant by person legally bound to produce it.

— Whoever, being legally bound to produce or deliver up any document to any public servant, as such, intentionally omits so to produce or deliver up the same, shall be punished with simple imprisonment for a term which may extend to one month, or with fine which may extend to five hundred rupees, or with both; or, if the document is to be produced or delivered up to Court of Justice, with simple imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

Illustration

A, being legally bound to produce a document before a Zila Court, intentionally omits to produce the same. A has committed the offence defined in this section.
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AbdullahZK
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Re: What about PIA order for Five Boeing 777-300ER Aircraft?

Post by AbdullahZK »

Any update on this order of 5 777's???
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Re: What about PIA order for Five Boeing 777-300ER Aircraft?

Post by owais usmani »

AbdullahZK wrote:Any update on this order of 5 777's???
Apparently PIA is renegotiating with Boeing about the purchase terms of these aircraft, as per recent statements by the CEO and Chairman.
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Re: What about PIA order for Five Boeing 777-300ER Aircraft?

Post by AbdullahZK »

Hope it gets settled soon and they start coming in from next year.
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Re: What about PIA order for Five Boeing 777-300ER Aircraft?

Post by owais usmani »

I have read rumors on Facebook that the actual negotiations revolve around PIA wanting to ditch the 300ER and replace it with 787-8 in this order. Don't know how much true it is or if its even possible.
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Re: What about PIA order for Five Boeing 777-300ER Aircraft?

Post by ammad »

787-800 have approx three year delivery time, however 777-300 ER could be handed over to PIA with in next 12 to 18 month.

But 787-800 is more logical for PIA to replace A310, and definitely a great step towards fleet modernization.
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Re: What about PIA order for Five Boeing 777-300ER Aircraft?

Post by uzairali »

ammad wrote:787-800 have approx three year delivery time, however 777-300 ER could be handed over to PIA with in next 12 to 18 month.

But 787-800 is more logical for PIA to replace A310, and definitely a great step towards fleet modernization.

787 is out of question now that we're getting a330s. I think PIA is just looking for discount now on the 77w or cancell it.
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Re: What about PIA order for Five Boeing 777-300ER Aircraft?

Post by ammad »

For time being 4 A330 from Srilankan is a good option, however if PIA opt for 7 or 8 787-8 in lieu of 5- 777-340ER, that would also constitute a logical step.
Last edited by ammad on Thu Jul 21, 2016 6:58 pm, edited 2 times in total.
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