Overseas assets: Sale of PIA hotels likely to rake in $700 million

[Cheetah786]

these stupid idiots will sell everything pakistan owns to their business partners...

p.s.

makes no sense of selling assets, they can freaking give it on long term lease... lakin nahi bc mulk ka nuksan ho kiya parwa !

Government are there to run countries not business and in Pakistan case all crown corporation were used by Military and politicians for personal gains.

Crown corporations don't pay any taxes and cost billions to keep afloat private ones pay taxes and cost nothing to taxpayers.

 

[My-Analogous]

Privatizing has good long term benefits. The institute which suck billions of money suddenly become profitable for government. Like KESC. It was losing around 10B each year which government was paying. Gov privatized it for 18B which was revenue for short term and also saved around 10B each year which is a long term benefit. Also, government has 26.5% shares in it. KESC earned 7B profit last year and 26.5% of the profit went to government other than the tax it collect when consumer pays the bill.
One more thing: There are some governments which open mass hiring to get vote banks/labour union support/hire people for money etc. This mass and illegal hiring suck all the revenue of company and they cannot be laid even if there are stupidest of the people and are even not qualified for the posts. Private 'seth' ask people to work, if not, go back to home!!


Good idea but who will buy? It had many long term liabilities on it. I dont think there will be any costumer. All we have to do is to clean it within itself to make it profitable because we OWN it. Her profit is our profit and her loss is our loss!!

This is not good to sale your profitable property for your loss one. That hotel is the prime hotel and if they want to sale it then sale PIA not that, May be some PMLN worker want this hotel and this hotel worth what they are mentioning is less what actually is and around 60% less value they are showing so who ever buy that his wealth will be jump 40% immediately base on his investment. GOOD BUSINESS BY OUR GOVT.

If only making money was so easy.

What about staffing costs?

What about taxes?

What about marketing?



NO, they're carrying out the publicly stated plan of splitting PIA into a core business, bifurcation is a word you could use.



Actually the recent lease tender for 10 aircraft was cancelled and a new one reissued.



Apart from the 5 Boeing 77Ws which were ordered before this govt, they're not buying any aircraft but leasing. Leases can always be cancelled early for a small penalty.



When you're technically bankrupt, it is. PIA's liabilities exceed her assets ie, All PIA's aircraft, engines, spares, office eq, IT eq, ground support eq, properties and facilities (hotels and engineering) etc amount to less than PIA's debt.



If you need to raise money (PIA is desperate to do so), it makes perfect sense.

The alternative is to write the airline off altogether and keep the hotels running.

For your all business brain that hotel was never in loss and all are mentioned details cuts.

 

[ali_raza]

yaaar..just girvi rakh do kisi ke pas.when we will have money we will take our registry papers.like we do in case of loan on our land.

 

[imiakhtar]

For your all business brain that hotel was never in loss

I've been reading PIA corporate accounts for 10+ years. I'm aware of that.

Do you think the hotels would be valued at $700m+ if they were loss making too?

 

[dawn_news]

"The money raised by selling both the assets will be used to clear PIA’s debt, which currently stands at Rs191 billion (about $2 billion)."

So even aftet selling it for $700 million, debt of $1.3 billion still left. Thanks PPP for fucking up yet another department.

 

[My-Analogous]

I've been reading PIA corporate accounts for 10+ years. I'm aware of that.

Do you think the hotels would be valued at $700m+ if they were loss making too?

Yes because it is in prime location in Manhattan, New york and that is why Gunja and co. and before him Zardari and co try to sell that

The Roosevelt Hotel (Manhattan) - Wikipedia, the free encyclopedia

 

[Edevelop]

"The money raised by selling both the assets will be used to clear PIA’s debt, which currently stands at Rs191 billion (about $2 billion)."

So even aftet selling it for $700 million, debt of $1.3 billion still left. Thanks PPP for fucking up yet another department.

You are confusing. The hotel will be sold between $2-3 Billion. $700 Million is the amount left in our hands after we clear the debt of $1.9 Billion

 

[My-Analogous]

You are confusing. The hotel will be sold between $2-3 Billion. $700 Million is the amount left in our hands after we clear the debt of $1.9 Billion

and after three year all this $M 700 will be transfer to private account