Pakistan International Airlines to purchase aircraft from Cathay Pacific

Airline Industry Information, August 15, 2002

AIRLINE INDUSTRY INFORMATION-(C)1997-2002 M2 COMMUNICATIONS LTD

Pakistan International Airlines (PIA) is expected to finalise the purchase of six Boeing 747-300 aircraft from Cathay Pacific Airways.

The deal - worth USD63m - was approved by the Pakistani government on 12 August after it approved a USD150m financial package for the airline to purchase new aircraft. PIA currently leases five of the aircraft, while the sixth is in storage in California. The airlines formed the five-year lease agreement in July 2001, with an option for PIA to purchase them at predetermined prices.

The two airlines are expected to sign contracts on the agreement shortly.

PIA is also planning to purchase 11 new aircraft under a USD2bn fleet renewal plan between 2003 and 2011. It is currently unclear whether the airline will purchase Boeing or Airbus aircraft, reported The Associated Press.

((Comments on this story may be sent to aii.feedback@m2.com))