In order to become debt free and incur fewer losses, Pakistan International Airlines (PIA) has requested the Federal Government to help to make the national carrier a debt-free organization by selling the strategic assets which worth billions; e.g. hotels in New York and Paris.
The Chief Executive Officer (CEO) of PIA has sent a proposal to Federal Government which features plans of selling Roosevelt Hotel in New York and Scribe Hotel in France, Paris that are owned by PIA.
Earlier this month, an important meeting on the matter was organized in Islamabad with top government officials. Since then there was no concrete decision taken by the government on the proposal.
Its worth mentioning that PIA has already shut its operations to the United States earlier this month because of the crisis PIA currently facing. PIA said the route to New York incurs more cost than profit, therefore shutting down the operations is an attempt to keep the loses under control. The last flight from New York to Lahore arrived via Manchester during the first week of November 2017.
It’s not new that PIA is struggling with losses and debts; it’s been in this phase for the last decade. Now the management has realized that it becomes inevitable to sell off key assets in order to bring the airline back on track.
But PIA has also requested the government to start non-stop flights to US earlier this month, now what government would decide about selling strategic assets is still to watch.