Pakistan International Airlines (PIA) plans to demolish the iconic Roosevelt Hotel in New York City to make way for the construction of a new hotel through a joint venture, a representative of the Aviation Division informed the Senate Standing Committee on Aviation. The PIA owns 37 buildings across the globe, 29 of which are located in Pakistan. The hotel was recently renovated at a cost of $6 million and was handed over to the New York City administration for three years, where it is being used as a center to house migrants.
The financial advisers who have been working on PIA’s privatisation will provide suggestions on the future of the Roosevelt Hotel, although the PIA properties are not linked with the privatisation process. The PIA official stated that the company would incur significant losses if the joint venture agreement for the hotel did not materialize.
The committee was also informed that PIA paid $26 million to retrieve its two stranded aircraft from Jakarta, with one Airbus A320 already arriving on Tuesday night. The committee also heard about PIA’s decision to outsource its flight kitchen to save costs and the possible future of PIA employees in light of the privatisation. The PM’s adviser on aviation informed the panel that the airline could earn up to Rs8 billion if the UK route were to be restored.
Additionally, the PIA representative explained that the airline could be operated independently if two Boeing 777 and five Airbus planes, which require repair and maintenance, become operational. The committee also discussed the financial issues between PIA and the Pakistan State Oil.
Finally, the privatisation secretary provided an update on the process of hiring financial advisers and the due diligence being conducted on PIA. The Peshawar Flying Club also presented issues regarding its closure and future analysis to the committee members.