PIA Selling Four Airworthy Airbus A310 Aircraft

[Abbas Ali]

Bids evaluation report still not available on PIA website?

Abbas

[Abbas Ali]

Does status of AP-BGO remain as an airworthy aircraft or changed to non-airworthy after reported incident involving the A310 at Tokyo Narita International Airport on December 23 (viewtopic.php?f=1&t=25074)?

And still no evaluation report on PIA website about bidders for these four A310s?

Abbas

[Abbas Ali]

A PIA Airbus A310-300 was seen inside a hangar at Karachi Airport in February 3 PTV News footage.



Abbas

[Abbas Ali]

As at December 31, 2015, the aircraft fleet included eight Airbus A310-300 aircraft including spare engines which were stated at revalued amount of Rs. 1,815.664 million on which an aggregate surplus of Rs. 27.165 million appearing in the surplus on revelation of fixed assets.

During the period ended September 30, 2016, four A310 aircraft have been grounded / retired from operation due to old aged and requirements of major improvements and modification. Accordingly, the carrying value of these four airframes of A310 aircraft of Rs. 64.855 million have been
credited while debiting the consolidated condensed interim profit and loss account by Rs. 618.705 million including the release of deficit from equity of Rs. 553.850 million, without taking its effects on related capital spares and stores and spares. As a result, as at June 30, 2016, the aircraft fleet included four A310 aircraft including spares engines at the carrying value of Rs. 1,977.797 million on which an aggregate surplus of Rs. 567.058
million is appearing in the surplus on revaluation of fixed assets.

As at June 30, 2016, the carrying value of related capital spares and stores and spares is Rs. 409.426 million and Rs. 599.722 million respectively, Due to old age and requirements of major improvements and modification. Accordingly, the carrying value of these four airframes of A310 aircraft of Rs. 64.855 million have been credited while debiting the unconsolidated condensed interim profit and loss account by Rs. 618.705 million including the release of deficit from equity of Rs. 553.850 million, without taking its effects on related capital spares and stores and spares.

As a result, as at September 30, 2016, the aircraft fleet included four A310 aircraft including spares engines at the carrying value of Rs. 1,977.797
million on which an aggregate surplus of Rs. 567.058 million is appearing in the surplus on revaluation of fixed assets. As at June 30, 2016, the carrying value of related capital spares and stores and spares is Rs. 409.426 million and Rs. 599.722 million respectively.

In order to keep remaining four aircraft flying beyond December, 31 2016 major investment and modifications to the structure were needed which have not been considered feasible by the Company’s management due to their old age. Hence it had been decided by the management subsequent to periodend to ground / retire from operation these remaining four A310 aircraft.

Accordingly, in order to fetch a good market price, an international tender was floated for these four A310s which appeared in July 31, 2016 for bid opening on August 31, 2016. However, no bids were received and the exercise was floated on November 09, 2016 for bid opening on December 13, 2016, only single bid for one A310 (without engines) at Euro 47,500 with the intention to park it in the Leipzig/Halle Airport, Germany. Accordingly, aircraft A310, AP-BEQ was transported on November 25, 2016 before the completion of formal bidding procedures. Therefore, the inquiry in respect of sale of A310, AP-BEQ has been initiated, the outcome of which is pending to date.

The management is of the view that the fair value of remaining four A310 aircraft including spares engines as at September 30, 2016 could not be determined till the time of completion of inquiry. Therefore, the management has not carried out any exercise to assess that whether remaining four A310 aircraft including spares engines, related capital spares and stores and spares are stated at their recoverable amount as at June 30, 2016 in accordance with the requirements of International Accounting Standard (IAS 36) 'Impairment of Assets' and the Company’s accounting policy for impairment and accordingly,adjustment, if any, in this respect has not been made in these unconsolidated condensed interim financial information for the period ended September 30, 2016.

Source: PIA

Abbas

[Abbas Ali]

Grounded PIA Airbus A310-300 aircraft seen at Karachi Airport today. An ATR 42-500 with painted out PIA markings also seen - Photo by Uzair Ansari

Abbas

[Amaad Lone]

Had BEQ not left for Germany it would have been parked next to these three A310-300s rusting and looking filthy in the heat of Karachi.

PIA got some money from the film company and they should be happy.

Once less plane to scrape.