Pakistan International Airlines (PIA) invites "sealed bids" from interested parties for the dry lease of narrow-body aircraft as below:
Aircraft Type: Narrow-body aircraft Number of Aircraft: Up to ten Seating Configuration: Minimum 150 seats (two-class) Lease Period: 6 years Delivery Schedule: Preferably immediate Year of Manufacture: 2004 or later
No reputable leasing company will want to do business with PIA and in the height of the recent terrorist activity lessors will not want their planes flying in Pakistan. They can float tenders for the next 100 years and they'll end up scraping the bottom of the barrel.
lessors are covered through insurance and EOL (end of lease) conditions. The risks are covered in the asking price.
IMO problem is with airline not able to make up its mind yet and then stick to that.
Completely agree with TAILWIND, leasing companies are all in business to make money.
There have been far greater terrorist incidents globally in the past, yet airlines in those affected countries have never had problems leasing aircraft.
However a lot of companies generally avoid participating in tenders involving any government owned entity as they have had past experiences of tenders being repeatedly cancelled, or tender requirements being changed in order to favor one bidder over another.
TAILWIND wrote:IMO problem is with airline not able to make up its mind yet and then stick to that.
fatah wrote:However a lot of companies generally avoid participating in tenders involving any government owned entity as they have had past experiences of tenders being repeatedly cancelled, or tender requirements being changed in order to favor one bidder over another.
The fact that QALC was the lowest cost option should have been enough for a contract to be signed. Using the tender award and then trying to extract further concessions from QALC is disrespectful, cheeky and unbusiness-like.
PIA is lucky with its narrowbody tender timing as there as plenty of A320s/B737s out there that are close to coming off lease and the lessors don't want to have parked aircraft. That is why they will continue to respond to the tenders, until a point where the waste in time dealing with PIA and Govt bureaucrats drives them off.
