PIA presents plan to sell iconic Roosevelt Hotel in New York to pay off Rs 406 billion debt

[somebozo]

PIA presents plan to sell iconic Roosevelt Hotel in New York to pay off Rs 406 billion debt
Posted By: News Deskon: December 11, 2017Tags: PIA, Roosevelt Hotel, Shahid Khaqan

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ISLAMABAD: Prime Minister Shahid Khaqan Abbasi has turned down a proposal of selling Roosevelt Hotel, New York to clear debt of Pakistan International Airlines (PIA).

The Aviation Division secretary submitted a proposal to put the hotel on sale to clear debt of PIA which was under financial constraints due to huge borrowings.

The prime minister was also informed that the hotel was also going into loss and therefore it should be sold out.

However, the prime minister, who chaired a meeting regarding affairs related to Roosevelt Hotel at the PM Office, turned down the proposal, asking the secretary to come up with a plan to turn it into a profitable entity, sources said.

READ MORE: PIA plane crew lands back in Pakistan, interrogated by PIA authorities
Earlier, PIA had come up with a plan of transferring assets — including Roosevelt Hotel — to pay off Rs352 billion to clear balance sheet of the national carrier in an attempt to make the organisation financially viable.

The PIA chief executive officer had submitted a business plan to the federal government based on two options to make PIA financially viable.

READ MORE: PM Shahid Khaqan meets Nawaz Sharif in Islamabad
Total liabilities of PIA stood at Rs406 billion. To clear the balance sheet, the CEO wanted the national carrier to pay off liabilities worth Rs352 billion out of Rs406 billion.

One of the proposals was to either transfer the hotel to the government or sell it to pay off PIA’s debt.

In Monday’s meeting, the proposal was submitted to the premier to sell Roosevelt Hotel to clear the debt. However, the proposal was turned down.

The Aviation Division secretary briefed the meeting in detail about financial condition of the hotel and reducing the scale of return on investment.

READ MORE: Special PIA flights with holiday packages to kick start for Northern Areas
The prime minister stated that the government considers Roosevelt Hotel as an important historical building owned by the state and that its divestment is not an option.

“Apart from being a valuable property, the hotel also carries cultural significance for Pakistan.”

The prime minister also directed the Aviation Division secretary to submit a business plan for improving the income stream of the hotel by either alternate or mixed use development.

 

[somebozo]

The prime minister stated that the government considers Roosevelt Hotel as an important historical building owned by the state and that its divestment is not an option.

“Apart from being a valuable property, the hotel also carries cultural significance for Pakistan.”

The prime minister also directed the Aviation Division secretary to submit a business plan for improving the income stream of the hotel by either alternate or mixed use development.

this is what you get as putting a business man as CEO..a person who understands the money game...while a chutya like bhutto who only knows to steal from private and give it to public as free lunch..

 

[BHarwana]

lol the problem with PIA is marketing and administration at the moment.

 

[somebozo]

lol the problem with PIA is marketing and administration at the moment.

Public rapport and political meddling as well...
PIA Shares are trading all time low..


Open Rate 4.03
Current Rate 4.23
L.D.C.P. 4.06
VAR 20.9

High 4.26
Low 4.00
Chg. 0.17 (4.19%)
Haircut 24.75

 

[Enigma_]

Even if these idiots sell off the hotel and clear a large amount of the debt they'll go into it again because they're simply bloody incompetent. The Airline needs to be privatized, it is as simple as that.

 

[TOPGUN]

The PM made a wise choice , if it was up to these courpt and dumb people in PIA they would sell Pakistan if they could to save their own a$$ very pathetic yet sad.

 

[BHarwana]

Public rapport and political meddling as well...
PIA Shares are trading all time low..


Open Rate 4.03
Current Rate 4.23
L.D.C.P. 4.06
VAR 20.9

High 4.26
Low 4.00
Chg. 0.17 (4.19%)
Haircut 24.75

This all is happening because we gave all of PIA tricks of Trade to Emirates and destroyed our own Airline from competition from Emirates.

 

[Sharpshooter12]

This all is happening because we gave all of PIA tricks of Trade to Emirates and destroyed our own Airline from competition from Emirates.

I have to humbly disagree with you on this analysis.

Even if we accept that there were some secret tricks that kept PIA profitable until mid 90's that we gave away to the Emirates, although that seems totally bonkers to me. Emirates did not force us to have an aircraft to employee ratio of 1:400 plus and even worse if you consider the actual number of operational planes. It did not force us to give away free air tickets to employees and family, lower our food and service standard, mismanage company's assets and making corruption and nepotism a symbol of PIA.

Emirates, Etihad and Qatar were bound to succeed, they had the financial muscle to make them successful. If we would not have leased our planes or provided support they would have got it from somewhere else. We also provided planes and support to Somalians, how great is their airline?

PIA thrived till the mid 90's because of its professionalism, ingenuity and an excellent management. As soon as the corrupt politicians of Pakistan started appointing MDs based on their loyalty to the party rather than merit, it started suffering.

 

[Thəorətic Muslim]

Perhaps in two days when PIA requests another monthly bailout this PM will do what needs to be done..

 

[Clutch]

Perhaps in two days when PIA requests another monthly bailout this PM will do what needs to be done..

I hope... however unfortunately I doubt it...

An interim puppet PM doesn't even have the authority to take a poop without getting permission from baba baboon first.

Baba baboon these days wants to burn things down rather than benefit pakistan in any way.

 

[mkiyani]

they shouldn't sell it.. they should change the management and than see the profit flow.. hire staff from countries like china and turkey than see how it make profit.. they want sell it so that they fill their pockets.. they should holiday packages and so on.. it would be a biggest mistake to sell it..