Pakistani national airline says it will 'rigorously' contest plane impoundment in Malaysia

In this file photo, a Pakistan International Airlines (PIA) plane prepares to take-off at Alama Iqbal International Airport in Lahore on Feb. 1, 2012. (REUTERS)

• The incident happened after a leasing firm reached out to a court in Kuala Lumpur and said PIA owed it $4.5 million
• The same plane was impounded by the Malaysian authorities in January 2021, though it was released after two weeks

ISLAMABAD: Pakistan International Airlines (PIA) said on Tuesday its legal team would forcefully present its case to a court in Kuala Lumpur after one of its passenger planes was impounded by the Malaysian authorities after a leasing company said PIA owed it $4.5 million.
The country’s national airline has been grappling with financial losses, mismanagement, and operational challenges in recent years. It has also been burdened by a high debt load, inefficiencies, and corruption allegations, resulting in an overall decline in its financial performance.
“A leasing company approached a local Malaysian court seeking impounding on claims that PIA owns $4.5 million to them,” said Abdullah H. Khan, a spokesperson for the airlines. “However, the actual payable amount was $1.8 million, and that too had already been paid to them. It is our stance that the claim submitted to seek impounding was incorrect and PIA has engaged its legal team in Kuala Lumpur to rigorously contest the matter in the court of law.”
It is pertinent to mention that the same PIA commercial plane, a Boeing 777, was also impounded in Malaysia in January 2021, though it was allowed to return to Pakistan after approximately two weeks.
Khan mentioned that PIA purchased the airliner last year, noting that the leasing company only owned one of the engines mounted on the plane.
He also stated that PIA had arranged for the repatriation of passengers who had booked themselves on the impounded plane, ensuring their travel on another aircraft.