Pakistan's PIA mulls leasing planes as EU ban looms

KARACHI, Feb 24 (Reuters) Pakistan International Airlines (PIA) is considering leasing passenger airliners and crew in light of a looming European Union ban on more than three-quarters of its ageing fleet over safety concerns, PIA officials said.

The state-run airline was warned last year that most of its planes failed to meet international standards, and yesterday an EU source revealed that all but seven of PIA's 42 planes would be barred from landing in the EU.

A PIA spokesman said he was unable to comment, as the European Commission had yet to make any decision official. The EU source in Brussels said it would happen within nine days.

Pakistan's embassy in Brussels had informed the airline of the impending ban, officials said.

Today a senior PIA official described the EU decision as ''a surprise'', but said steps would be taken to keep services to Europe running.

PIA's seven new Boeing 777s have not been banned and will be used to the maximum on the European sector, and the airline is also considering leasing.

''We can acquire new aircraft on wet lease similar to what we do every year for our Haj operations,'' said the official, who requested anonymity.

PIA faces a flood of demand every year from Muslims making the Haj pilgrimage to Saudi Arabia.

Wet leasing is the term given to leasing the plane plus cockpit and cabin crew.

PIA operates 16 flights a week to eight countries out of 27 in the EU bloc.

Its most profitable routes were to the West Asia and Britain.

''SHOCK AND SURPRISE'' Another PIA official, who participated in meetings with EU experts, said the airline had expected its Airbus A-310 and Boeing 747-300 aircraft to have escaped the ban, and the decisions had come as a shock.

A PIA aircraft safety official said that, after Brussels put PIA on a watchlist in 2006, the airline had hired a British-based company to refurbish the interior and exterior of planes after consultations with EU officials.

''We informed them from time to time on the progress, and they gave positive signals,'' the official said.

A Pakistani diplomat in Brussels said the airline was working to address the EU's concerns, which focused on maintenance problems and old aircraft.

Last year, the Commission banned nearly 100 airlines from operating in the bloc, targeting mostly African carriers after a spate of fatal crashes involving European passengers.

REUTERS MS BD1521