ISLAMABAD, Nov 2: Minister for Defence Ch Ahmad Mukhtar found himself in the hot seat when Senate criticised recent arrangements between Pakistan International Airlines with Hashoo Group, the largest hotel group in Pakistan that owned Marriott, Pearl Continental and Hotel One chains, to provide standardised hotel facilities to its crew traveling on duty.

This issue was taken up by the Senate where Minister of Defence came under pressure from members who threw questions at him over the extravagant arrangements.

“A very important factor of PIA crew staying at a hotel is their security and safety that ultimately leads to timely and safe operations,” the Defence Minister said adding, “After devastating attacks on two major hotels-- Marriott in Islamabad and PC Hotel in Peshawar-- PIA approached the Hashoo Group to enhance security measures at hotels to which the group complied with and introduced various measures to ensure safety.”

He informed the Senate that Hashoo Group had requested for enhancement of corporate rates for PIA due to substantial increases in its operation costs and security arrangements.

“PIA management considered the proposal and replaced the January 2009 contract with the Group with a new agreement signed in February 2010,” he said.

The major difference between the two contracts was that the rate per room for PIA crew and employees increased from Rs4,000 to Rs6,000 at PC and Marriott hotels. For Hotel One, rates were increased from Rs400 to Rs4,900.

“These measures had increased operating costs for PIA but were specially done to ensure safety and security of PIA crew members throughout the country, which were essentially part of safe and on-time operations,” he told the Senate members.

The house also observed that PIA had also entered into contract with various hotels in the Gulf countries for stay of its cabin crew. To this particular inquiry, the minister replied that PIA had only once entered into contract with PC Hotel Dubai for accommodating its crew.

The Minister said: “PIA got the best deal from PC Hotel Dubai. There are hotels which provide lower rates but these accommodations did not offer the facilities required for crew members.”

PIA was also contemplating to buy new aircraft after approval from the cabinet and subject to availability of funds, he said.