THE Senate Standing Committee on Aviation spoke on behalf of people of Pakistan when on Thursday it restrained the government from privatising or entering into a joint venture for the Pakistan International Airlines (PIA)-owned Roosevelt Hotel in New York during the Covid-19 situation. The opposition was quite categorical in opposing any such move but the response offered by the treasury benches added substance to rumours that something ominous was cooking up.
Roosevelt Hotel is situated in a prime commercial area of New York and there is no reason it should incur losses, a reason that is often advanced to sell this golden property of the national airlines. It might be incurring losses but this is due to wrong policies as influential visitors from Pakistan had been staying in the hotel without any charges and otherwise too it was not being run on professional lines. According to the Managing Director of Pakistan International Airlines Investment Limited (PIAIL), Najeeb Sami, Roosevelt remained profitable for 99 years and suffered a loss of only $1.5 million last year. This shows business prospects and potential of the hotel, which is suffering temporary losses like other entities in the world due to the situation arising out of Covid-19. The MD also suggested a change in the business model of the hotel to make it profitable but the question arises who is preventing this to happen. The very fact that scores of attempts were made during the last two decades to privatize the hotel is reflective of vested interests in the deal during tenure of almost every government and the incumbent one is not an exception. It is rightly pointed out that influential people including US President Donald Trump are interested to buy the building which speaks about profitability and potential of the building/site. The Senate panel has apparently opposed the deal during pendency of Covid-19 situation but we would strongly urge that the idea of privatization of the building should be dropped altogether and a new business model prepared for its proper utilization.