Govt to divide PIA into two entities to steer it out of financial crunch
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Aviation and Railways Minister Khawaja Saad Rafiq has said that the government will divide the Pakistan International Airlines (PIA) into two entities to steer it out of severe financial deficit, reported 24NewsHD TV channel.
The minister was addressing a presser in Lahore on Sunday. He said that in order to fend off financial crunch currently being faced by the national flag carrier, the government would divide the PIA into two entities – administrative and operational.
Talking about PIA Roosevelt Hotel in Manhattan, he said that the hotel has been given on lease for three years to an American organization, New York City Administration.
“”Roosevelt Hotel is an asset of Pakistan in America. We have given it on lease for three years. Pakistan will earn $220 million through this lease. We have utilized this asset for generating money,” Saad Rafiq added.
On May 29, the PIA signed a rental deal for its Roosevelt Hotel with an American organization called New York City Health and Hospitals Corporation.
According to the contract, the Roosevelt Hotel would be operated by the New York City Health and Hospitals Corporation for three years.
Under the agreement, the American firm would provide housing for migrants in the Roosevelt Hotel. The US firm has also given an 18-month guarantee to the PIA Investment Management, besides signing a settlement agreement with the union of the PIA hotel.
On the PIA aircraft issue which was stopped in Malaysia over a legal dispute, Saad Rafiq said that the plane has returned.
The release of Boeing 777 came about after a local court set aside a previous decision and issued orders in favour of the national carrier to release the aircraft on Friday.
The minister said that the PIA is actively involved in the Hajj operation. He felt excited to announce that for the first time, direct Hajj flights have been taken off from Quetta.
He also announced that new airports would be constructed in Sukkur and Dera Ismail Khan. He further said that the runways of the Lahore and Faisalabad airports would be upgraded.