LAHORE: Minister for Aviation and Railways Khawaja Saad Rafique said on Sunday that a contract had been signed with the New York City (NYC) government to operate the renowned Roosevelt Hotel of the Pakistan International Airlines (PIA) situated in New York (USA) for three years.
In a press conference held at Allama Iqbal International Airport here, he said that a revenue of US$220 million would come to the country as a result of the agreement.
Giving details of the agreement, he said that 1,025 rooms of the hotel would be handed over to the City government for three years and the initial earnings from the hotel had started pouring in.
He said that under the agreement, one-year business was guaranteed; however, he expressed his hope that the hotel business would continue for all three years. He said that there were several issues involved in the Roosevelt case, like the hotel was at risk of being declared a landmark.
after which the building would be unable to be altered. However, now the danger had subsided for at least three years, he added. The minister said that earlier the hotel had been closed since the COVID-19 period, and an amount of $25 million were being spent on the closed building and $20 million were pending as the liability.
He said that 479 employees were working in the hotel, which was a big number and it was difficult for the hotel to terminate them from jobs due to the US labour laws. However, now after the agreement, this number would be decreased to 77 at the end of the contract period, he added. He thanked the New York city government for its cooperation.
Regarding the outsourcing of the airports, the minister said that three international airports including Lahore, Karachi and Islamabad were being outsourced and made it clear that outsourcing did not mean privatisation.
He said that only operation of the airports would be outsourced and not the land or property. As a result of the arrangement, new contractors would develop, improve and operate the airports, and after completion of the agreement period, the contractors would handed over it to the government again.
He said that the current administration had put it on the track and soon agreements would be signed with the best international airport operators. A credible company, International Finance Corporation (IFC) of the World Bank, had been given the task of outsourcing the airports as no Pakistani company had the experience in this regard.
He said that several airports including Madina Munawwarah, Istanbul, Dubai and others were being operated through the model being introduced in Pakistan now.
The minister said that the contracts would be given through open bidding and several international contractors showing their interest in this regard. He cleared that no employee would be expelled from his service.
Khawaja Saad said that the Civil Aviation Authority was also launching high profile projects in which runways at Quetta Airport would be reconstructed and upgraded. He said that Faisalabad runway was already under construction which would be operational soon and Lahore airport’s runways would also be upgraded.
He said that work of up-gradation at the Karachi Airport was already under construction while Gawadar International Airport was also under construction and soon would become operational.
He said that for first time, Hajj operation from the Quetta Airport was successfully in process and the residents of Balochistan were going for the Hajj through this airport. He said that two more airports including Sukkur and Dera Ismail Khan airports would be converted into international airports to facilitate the citizens of the area.
Discussing the issue of a flight 777 of the Pakistan International Airlines (PIA) stopped by the authorities at the Kuala Lumpur, Malaysia, the minister said that the issue was resolved by the legal team of the PIA in 72 hours and now the plane had reached Pakistan after carrying the passengers.
Giving details, he said that the aeroplane was a leased plane and the owner company unethically went to the Malaysian court on which the court seized the flight in an ex-party decision and the PIA was not heard, adding that if the court would have heard the PIA, the incident would not have happened. He thanked Malaysian ambassador in Pakistan for his cooperation.
He said that the PIA was a complicated case, adding that several steps were needed to upgrade the department.
He said some improvements had been made in the flights like better food quality, seating and services, but yet it needed several other things. He said that currently, the PIA was transporting 65,000 Hajj pilgrims in a big operation. He said that outsourcing was a solution to several problems of the PIA, adding that the PIA could be made two departments in which one PIA would bear the liabilities and the other would be operated according to the international standards and models. However, he said that no PIA employee would be sacked.
To a question about the ban on the PIA in several countries, he said that the country had to bear Rs71 billion per annum due to a stupid statement of a former minister, who had some ego issues with the administration.
He said that the government was contacting the governments of other countries to resolve the issue. The British government had even agreed to restore the flights, but some legislation was needed in this regard which would also be done soon.
He said that the PTI considered itself a party of pious people and all others were thieves, and this narrative damaged the PIA as the former minister in this sense, wanted to say that the previous governments consisted of thieves and all employees recruited during those rules were also thieves and corrupt. He said that the fake degree issue was presented in an exaggerated way.
To a question, he said that the world model had been changed and the world now thinks that doing business was not the job of governments, as it was the job of businessmen, whereas the job of the government was to regulate the system. He added that the country which only focused on its regulations instead of doing business, progressed a lot.
