Chairman PIA to Present Investigation Report in a Board Meeting Tomorrow

Mr. Irfan Elahi, Acting Chairman for Pakistan International Airlines (PIA) and Federal Secretary for Aviation Division will present his report to Board of Directors about expansive lease of A330 Aircraft (for Premier Service) and selling of the Airbus 310 at a throw away price, aviation sources confirmed PorPakistani.

PIA Board will meet tomorrow April 18, to discuss the matter.

It maybe recalled that PIA’s senior management including acting Chief Executive Officer Bernd Hildenbrand and other chief officers are undergoing an inquiry from Federal Investigative Agency (FIA) on the charges of corruption.

PIA board will debate on Chairman’s report and might even fix the responsibility.

“It is possible that report would be an eye wash and will act as a bail out plan for the German CEO Bernd Hildenbrand and other officers involved in the scandal.” source told ProPakistani.

A member of PIA board told ProPakistani that Government is the owner of the airline and Primer service was started on the wish of Prime Minister Nawaz Shareef.

He said that Management had presented the proposal regarding Primer Service before the board and all possible profits and costs were discussed there.

The board member said that after owner’s wish and management’s willingness to implement the plan, board was left with very limited choices but not to approve the project.

It maybe recalled that FIA is probing wet lease of A330 aircraft at a very high rent. Due to high leasing costs, PIA’s losses for the Premier Service reached Rs. 2.1 billion in four months. The total losses piled up to Rs. 300 billion in 3rd quarter 2016.

In another case, FIA is also probing the selling of an air worthy Airbus A310 on throw away price. With engine and seats this Airbus was sold in Rs 5.7 million. While just few months before this, another Boeing 737 was sold at price of 6.7 million without engines and seats.