A Pakistan International Airlines (PIA) Boeing 777 has been impounded under a Malaysian court order at Kuala Lumpur Airport on May 30, 2023. The aircraft is being held over a dispute between the airline and leasing company.
This is now the second time in the past two years that the aircraft in question has been impounded over leasing disputes.
Boeing 777-200 (registered AP-BMH) was operating on scheduled flight PK894 between Islamabad, Pakistan and Kuala Lumpur, Malaysia on 29 May.
The aircraft, which was carrying 186 passengers and 14 crew members, was on its way from Lahore, Pakistan to Kuala Lumpur, Malaysia when it was diverted to Kuala Lumpur Airport.
The aircraft was impounded after a Malaysian court issued an order to do so. The order was issued in response to a lawsuit filed by a Malaysian company that is owed money by PIA. The company, which is called MAA Group, claims that PIA owes it $4 million for the lease of two aircraft.
PIA has said that it is working to resolve the issue with MAA Group and that it hopes to have the aircraft released soon. However, it is not clear when the aircraft will be released.
First impounding in 2021
This is not the first time that a PIA aircraft has been impounded. In 2021, a PIA aircraft was impounded in London after the airline failed to pay for its lease. The aircraft was released after PIA paid the outstanding lease payments.
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PIA is a state-owned airline that has been struggling financially for several years. The airline has been plagued by corruption, mismanagement, and safety concerns. In 2020, the European Union banned PIA from flying to its member states due to safety concerns.
The impoundment of the Boeing 777 is a further blow to PIA’s reputation. It is unclear how the airline will be able to resolve the issue with MAA Group and get the aircraft released. However, the impoundment is a reminder of the serious financial and operational challenges that PIA is facing.
Background
Pakistan International Airlines is the national flag carrier of Pakistan. It was founded in 1946 and is headquartered in Karachi, Pakistan. The airline has a fleet of over 40 aircraft and operates flights to over 50 destinations in Asia, Europe, and North America.
PIA has been struggling financially for several years. In 2020, the airline reported a loss of $250 million. The airline’s financial problems have been caused by a number of factors, including high fuel costs, competition from low-cost carriers, and government interference.
Pakistan International Airlines has also been plagued by claims of alleged corruption, mismanagement, and safety concerns. In 2020, the European Union banned PIA from flying to its member states due to safety concerns. The ban was lifted in 2022, but PIA is still under scrutiny from the EU.
PIA has said that it is working to resolve the issue with MAA Group and that it hopes to have the aircraft released soon. However, it is not clear when the aircraft will be released.
Impact of Impoundment
The impoundment of the Boeing 777 comes as a further blow to PIA’s reputation. At this stage, it is unclear what arrangements have been made between the carrier and MAA Group to get the aircraft released.
Today’s impoundment serves as a reminder of the serious financial and operational challenges that PIA is facing, which were compounded by the global pandemic.
The impoundment may also have a negative impact on the airline’s standing with its customers. It is understood that a replacement aircraft was despatched by the airline to repatriate stranded passengers affected by today’s aircraft seizure.
 Boeing 777 has been impounded at Kuala Lumpur airport in a dispute over outstanding lease payments.){kind=link}