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PIA pledges all aircraft to fake company to get 8 Boeings
New Delhi, Oct 12: In a deal unheard of in aviation history Pakistan`s national airline has pledged its entire fleet in the name of a `fake off-shore company` to acquire eight Boeing-777 aircraft, media reports said.
New Delhi, Oct 12: In a deal unheard of in aviation history Pakistan's national airline has pledged its entire fleet in the name of a "fake off-shore company" to acquire eight Boeing-777 aircraft, media reports said.
The entire fleet was pledged by Pakistan International Airlines (PIA) following a directive by the US export-import bank, US-based 'South Asia Tribune' web magazine reported.
To comply with the Exim Bank condition, "PIA has registered its entire fleet in the name of a fake off-shore company -- fly PIA Limited -- in Cayman Islands to pledge its assets for use as collateral to buy three B777-2er to be delivered in the first quarter of 2004," it reported. According to the PIA website, the Pakistani carrier at the moment has 44 aircraft, including eight airbus 300-b4, six B747-300, four B747-200, six A310 and seven B737-300.
The registration of these aircraft in the Cayman Island- based company also puts a question mark on their operations in the Pakistani skies as the PIA can "no longer claim to be the national flag carrier".
Bureau Report
To comply with the Exim Bank condition, "PIA has registered its entire fleet in the name of a fake off-shore company -- fly PIA Limited -- in Cayman Islands to pledge its assets for use as collateral to buy three B777-2er to be delivered in the first quarter of 2004," it reported. According to the PIA website, the Pakistani carrier at the moment has 44 aircraft, including eight airbus 300-b4, six B747-300, four B747-200, six A310 and seven B737-300.
The registration of these aircraft in the Cayman Island- based company also puts a question mark on their operations in the Pakistani skies as the PIA can "no longer claim to be the national flag carrier".
Bureau Report