SriLankan Airlines expects to receive over $ 2.5 m from PIA at month’s end

Thursday, 2 March 2017 01:30 - - {{hitsCtrl.values.hits}}

By Charumini de Silva

National carrier SriLankan Airlines confirmed that it expected to receive a payment of over $ 2.5 million towards the end of this month for the A330 aircraft wet leased to Pakistan’s national carrier in August last year.

“The wet lease with Pakistan Airlines (PIA) has come to an end. They paid us the block hours for the future when we leased the aircraft in August last year, but there is reconciliation of about $ 2.5 million plus out of the total $ 3 million due from 8 February. We expect this payment to come within the next 30 days,” SriLankan Airlines Chief Technical Officer Dinnaga Padmaperuma told Daily FT.

According to him the leased A330 aircraft is being repainted at present, which they hope will return to its fleet by the end of this week.

“They need to get a lot more approvals than SriLankan Airlines because of their financial regulations. So, they have informed us that there is a delay, but it is coming,” Padmaperuma stressed.

According to him, PIA had called for tenders as their contract with SriLankan Airlines came to an end on 8 February where three airlines including SriLankna Airlines, HiFly and Turkish Airlines bid for and considered the bids of SriLankan Airlines and Turkish Airlines.

In this process, Turkish Airlines have bid very low whereas SriLankan Airlines have laid certain payment conditions that PIA did not want. As a result, PIA refused to extend SriLankan Airlines’ contract and is currently in discussion with Turkish Airlines to get an aircraft on a wet lease.

“It is a known fact that they (PIA) have delayed payments but they pay,” he said.