ECC approves new aircraft for PIA on dry lease

KARACHI: The Economic Coordination Committee ECC of the Cabinet has accorded in principal the approval for the acquisition of newer narrow body aircraft on dry lease which will improve PIA’s schedule reliability as well as save on fuel costs, PIA spokesman said here on Tuesday.

The ECC also approved the extension in all GoP guarantees as requested by PIA and has also approved the airline’s management request to provide support for additional funding to provide fiscal space to the Corporation.

The ECC meeting was chaired by Federal Minister for Finance and Economic Affairs Saleem Mandviwala whereas Minister of Defence Syed Naveed Qamar, Secretary Defence and Chairman PIA Lt. Gen Retd Asif Yasin Malik, Managing Director PIA Muhammad Junaid Yunus and Chief Financial Officer PIA Aftab Ahmed were also present.

The ECC took up PIA’s request to extend expired and expiring GoP guarantees and fresh funding for the acquisition of new aircraft on dry lease.

PIA presented an interim Business Plan for the period 201418 which was highly appreciated by ECC and the strategic direction envisaged by the new management in turning around the airline in due course of time. The ECC also provided valuable comments and desired that a monitoring mechanism should also be put in place.

Finance Minister Saleem Mandviwala advised that the Ministry of Finance will carry out the monitoring on behalf of GoP.