ISLAMABAD: The Senate was informed on Thursday that the national flag carrier would soon be acquiring 12 aircraft on dry lease.

Minister of State for Parliamentary Affairs Sheikh Aftab Ahmad told the house that nine A320 narrow-body, short-to-medium-haul jet airliners and three ATR-72 twin-engine, turboprop, short-haul regional aircraft would be acquired.

The Pakistan International Airlines had no plans to purchase new aircraft, he said, adding that it had acquired 13 aircraft on wet lease and six on dry lease since March 2014. At present, four A320 and two ATR-72 planes acquired on dry lease were in operation.

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The minister said a wet lease was an arrangement under which a company provided an aircraft along with crew, maintenance and insurance and the payment made was calculated on hours operated. It usually is a short-term arrangement.

A dry lease is an arrangement whereby an aircraft is provided without crew, maintenance and insurance to an airline on payment to be made on monthly or yearly basis. It is usually a long-term arrangement.

Thirteen aircraft had been obtained on wet lease between March and November 2014 to meet short-term capacity requirement of PIA, he said.

They were returned on completion of the lease term this month. Two of these planes were returned on May 13.

Answering a question, Sheikh Aftab said the profit and loss account for the period ending on June 2014 showed reduction in losses of the PIA to the tune of Rs8.25 billion when compared to the corresponding period of 2013. The PIA earned an operational profit of Rs2.14bn in the first quarter of 2015.

Published in Dawn, May 15th, 2015

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