Dubai based Co. offers USD 700mn credit facility to PIA – Alfalah Securities Limited
Karachi: Transworld Aviation FZE, a Dubai based US company has been awarded a contract by the government to offer a credit facility of up to USD 700 million for 90 days for the purchase of spare parts, consumable material and chemicals worth of minimum USD 40mn annually for Pakistan International Airlines (PIA).
According to Alfalah Securities Limited, previously, PIA had a registered list of 700 vendors for the purchase of spare parts however; the contract has now been awarded to Transworld Aviation which makes it PIA’s sole vendor. On the other hand, PIA’s engineers and pilots association have stated to take the issue to the Supreme Court on account of having concerns over transparency and competition. However, the management has claimed that the new contract would ease up the cash flows of the company which would enable them to meet their timely commitments.