Sell the hotels in New York and Paris and pay off debt

[Amaad Lone]

PIA is suffering from politics unions and poor management.

Like removing 30 economy seats to put 8 club class seats on the A320s and charging double the fare a lose lose situation.

Cutting out major routes and fleet shrinking but the employees remain at 15,000

Not able to get A321s to replace A310s while Air Blue is getting brand new A321s.

Ten years ago people use to discuss selling PIA hotels to buy planes, today an airline with 2.5 billion dollars in debt with nothing to show has to sell hotels just to pay off maybe half its debt and restructure.

The hotels can clear up to 150 billion rupees in debt that would save PIA maybe 15 billion a year in debt servicing or 150 million dollars.

What are these hotels earning, much less then 150 million dollars in profits.

These hotels are nothing but prestige for the airline, just like the premier service.

PIA must sell its hotels, pay off debts, get more planes and restart the airline with a plan, not short term leases to launch the premier service because Nawaz Sharif thinks its a good idea.

[shamxa]

I was thinking a similar thing about the LHR slots which PIA has - the supply demand is incredible (with hardly any supply) but if a Third runway gets built, their value could drop significantly.

http://onemileatatime.boardingarea.com/ ... hrow-slot/

[dreamliner99]

No way you would sell such a valuable and profitable asset to try and save a failing airline. Even if the sale wipes out half the debt PIA will still make losses.

[uzkt01]

I agree with dreamliner. Selling profitable assets wont save the airline. It needs to adapt to new aviation and marketing strategies.

[Amaad Lone]

The question of haram or not haram is not being discussed here, this is not an Islamic forum its an aviation forum please try to contribute to the subject. You want to discuss religion go somewhere else.

PIA needs investment and rather then injecting 30 billion of public money into a falling airline every year for the past ten years its better to sell the hotel and try to reduce its debt, add more capacity, cut down its employees and sell the bloody airline.

[dreamliner99]

This topic has gone widely off point, please let's talk about aviation and not your personal opinions on Islam and society.

[saqib]

why are the discussing religion over here? a guy is also harrasing me on private msg here whos the moderator or forum admin i wana report not you guys but some one from the page too !

[Abbas Ali]

I've removed off-topic posts. Please remember that this is an aviation forum and topics should not be hijacked to discuss non-aviation matters.

Coming back to topic subject: I think selling of hotels may give temporary relief but is not a long term solution as long as the airline is managed/run by the government with political interference in decision making and other problems like politically affiliated employees unions. The government should not be running/managing airlines and should sell the airline through a transparent process.

whos the moderator or forum admin i wana report not you guys but some one from the page too !

Saqib, you can report it to me

Abbas

[uzairali]

Right now PIA pays 150 million dollars annually to pay interest on its $3b+ debt.

So if the hotels make more than 150m "profit" (not revenue), then it should not sell hotel. It should if it is less than 150million profit.

The hotels are worth between 1.5b to 2b. So it is hard to say it makes anything more than 10-15% profit. They are highly valued due to prime real estate.