In a striking turn of events, the recent revocation of New York City’s $220 million deal with Pakistan International Airlines (PIA) concerning the iconic Roosevelt Hotel has sent shockwaves through the aviation sector, casting a long shadow over the airline’s much-hyped privatization efforts. Just two years ago, the caretaker government’s choice to lease this once-prestigious symbol of our share in the world’s capital drew widespread ire as a glaring indictment of PIA’s decline. Many were hesitant to witness the transformation of such a renowned establishment into a processing station for asylum seekers. Islamabad, however, remained resolute, asserting that this lease would generate considerable revenue at a critical time when the airline continued to grapple with operational losses exceeding Rs 42 billion (approximately $250 million) in the previous fiscal year. The uproar over criticism of taxpayers’ money usage compelling the New York City mayor to step back from a deal he had signed himself (while reflecting the increasing scrutiny on public-private partnerships) serves as an excellent case study for white elephants in Pakistan. PIA’s historic reliance on government lifelines, for instance, for everything from fuel payments to unpaid litigation dues, despite a long-drawn-out stay in the red can be a good starting point for self-reflection. For decision-makers in Islamabad, this cancellation underscores the challenges plaguing PIA’s privatization strategy as they have long touted privatization as the silver bullet for the airline’s operational troubles. Yet, the mishandling of flagship assets undermines confidence among potential investors. It is already hard for the national carrier to rise above its tarnished reputation, thanks to chronic inefficiencies and a lack of transparency. Furthermore, the latest round of failed bidding and little interest from the foreign players spelled out clearly how the ultimate challenge lies in turning the organisation around. To emerge from its doldrums, PIA must adopt a coherent and transparent strategy. This includes addressing longstanding systemic issues, such as financial mismanagement and operational inefficiencies that have defined the airline’s landscape for decades. Pakistani authorities must articulate a transparent vision – one that goes beyond mere privatization and includes a comprehensive turnaround plan benefiting all stakeholders involved. Routes to Europe, though encouraging are just the beginning, this “goal” to put an end to subsidies would only be fulfilled if the investor sees real potential for revenues, which primarily requires efforts to take on the airline’s liabilities. Countries like Vietnam and Mexico have successfully navigated the complexities of airline privatisation by prioritising operational efficiency and providing assurances to investors. A similar roadmap could guide PIA, but it hinges on the government committing to substantial reforms. *