Pakistan's PIA to lease two aircraft after EU ban

KARACHI, March 6 (Reuters) Pakistan International Airlines (PIA) said today it would maintain operations to the European Union with the help of two leased aircraft after the bloc barred most of its ageing fleet over safety concerns.

The EU yesterday banned all but seven of the state-run airline's 42-aircraft fleet. The seven aircraft not affected by the ban area new Boeing 777s.

PIA chairman Tariq Kirmani said the airline, which has cut almost 50 percent of flights on its European and North American routes, would get two Airbus A310 aircraft on wet lease, meaning the aircraft comes with cockpit and cabin crew.

''We are already using one A310. Its lease agreement will expire by the end of the month but we will get an extension,'' Kirmani told a news conference.

''We also plan to acquire another A310 under a similar arrangement from the same company,'' he said, referring to Turkey-based Saga Airlines.

Last year, the EU warned PIA that most of its aircraft failed to meet international standards. The EU's concerns focused on maintenance issues and the age of the aircraft.

But Kirmani said all PIA aircraft were safe and airworthy.

''There are no safety or airworthiness issues faced by any of our planes,'' he said.

''The EU decision is unjust and discriminatory as PIA had a better safety record than even certain major European airlines operating in their sky.'' Kirmani, who termed the EU action ''a very muddy episode'', said the airline was initially considering taking a legal course against the ban but decided against it.

''It would have been a lengthy and time consuming procedure,'' he said. ''It could also hurt PIA commercially.'' Kirmani said the airline had cut the number of flights on its European and North American routes and would use its seven new Boeings 777s to the maximum to keep remaining flights on those sectors operating.

''Flights on some routes are realigned but by March 28 business will be back to normal,'' he said.

PIA used to operate 42 flights a week to North America and eight EU countries. Its most profitable routes were to the West Asia and Britain.

It is now operating only 18 flights a week to North America and Europe but it hopes to increase that number by the middle of this month when the second A310 is due to begin operating.

The PIA aircraft affected by the EU ban includes six Boeing 747-300s, two Boeing 747-200s, seven Boeing 737-300s, one Boeing 727-200, 12 Airbus A310-300s, two Airbus A-321s, one Airbus A310 and three ATR-50s.

It also has one cargo aircraft affected by the ban.

REUTERS MS PM1935