PIA management in a belated but welcome move cancelled contract with Transworld Aviation Fze - a Dubai-based spare distribution company with no credentials - after more than half of its fleet was grounded for lack of spares, leading to an estimated loss of over Rs70 billion, sources in the airlines said on Thursday.

As per sources, contract which effectively has contributed to above said losses was approved by former PIA MD Nadeem Yousafzai, when a letter dated September 24, 2011 was issued by Director Procurement & Logistics, Khalid Iftikhar addressed to Transworld Aviation, Chairman Abdullah Khamas Al Sulaimany, stating “This is to acknowledge and confirm that PIAC have appointed Transworld Aviation exclusively with first right of approval for a period of 5 years for all services pertaining to normal supply of aviation spares and repair of consumer material,

chemicals and life limited parts with aggregated values of not less than $40 million annually, whereas Transworld Aviation has provided credit facility of up to $700 million if required to support PIA’s operation”. This suicidal decision was given post dated approval by politically nominated Board of Directors, who during Ahmed Saeed’s tenure had rubber stamped another such deal, which was also revoked subsequently.