PIA Planning to Sell Roosevelt Hotel & Other Assets to Settle Liabilities

Pakistan International Airlines (PIA) is all set to vend some of its critical assets like the ‘Roosevelt Hotel’ to make the airline financially stable again.

The current liabilities of PIA, which contributes 1.5% to the country’s GDP, have reached a whopping amount of Rs. 352 billion halting many of its operations and services.

Keeping the current affair in mind, PIA’s Chief Executive Officer, Dr. Musharraf Rasool Cyan, has suggested a business plan draft to the federal government to make the entity financially feasible again.

The plan shared by the CEO asserted that the investments can be redeemed by the government in 2022 when the PIA’s capitalization will match that level.

The plan also suggested the government to pick debt-servicing cost of Rs. 59.334 billion for 2018 and Rs. 49.98 billion for 2019, respectively. Cyan stated that these debts will allow the entity to stand on its own feet and make improvements in these two years.

The plan further predicted that the PIA will be able to bear the debt-servicing cost for the year 2020, 2021 and 2022 itself – without any external support.

The CEO revealed that PIA’s fleet is also expected to increase from 36 to 44 by 2022 though five of the ATR 72 aircrafts will terminate their operations by 2022.

PIA management informed the cabinet that the closure of PIA, which provides employment to over 18,000 people directly and over 50,000 people indirectly, would result in unemployment issues and the passengers would miss out on direct flights to many countries that other domestic airlines do not offer.

The cabinet members said that they are unable to check the validity of data provided by the entity due to the absence of a backup record. They further said that the records of PIA for last four years suggest otherwise.

The members suggested that PIA should improve its customer services first which doesn’t even require any financial resources. They claimed that the company is facing huge loss due to the poor services provided to the passengers.

The cabinet members said that lack of accountability is the major problem and it does not have anything to do with the number of employees of the entity. The members insisted the authorities to form a sub-committee to analyze the business plan in detail.

Via PakistanToday