pakistan international airline new

8/3/2019 Pakistan International Airline New

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Pakistan International Airlines

Introduction of organization

Pakistan International Airlines (also referred to as PIA), is the national flag carrier of

Pakistan and the national airline operating passenger and cargo services around the world.

Its main hubs are Jinnah International Airport, Karachi, the Allama Iqbal International

Airport, Lahore and the Islamabad International Airport, Islamabad/Rawalpindi.

It also serves regional airports, including Peshawar International Airport, Peshawar,

Faisalabad International Airport, Faisalabad and Multan International Airport, Multan

that connect to the main hubs and have flights to the Middle East.

Pakistan International Airlines PIA can trace its beginnings to the days when Pakistan

still was not a nation. In 1946, Muhammed Ali Jinnah, also known as Quaid-e-Azam,

realized the need for an airline network for the forming country. He called upon the help

of an experienced industrialist Mirza Ahmad Ispahani. Orient Airways, registered in

Calcutta, was formed on October 23 1946, In February 1947, three DC-3 airplanes were

bought from a company in Texas, and in May of that year, the airline was granted a

license to fly. Services were started in June from Calcutta to Akyab and Rangoon. This

was the first post war airline flight by a South Asian registered airline company.

Two months after this service began, Pakistan as a nation was formed. Orient Airways

began relief flights to the new nation, and soon after, it moved operations to Karachi,

where it began the important route from Karachi to Dhaka. In addition, their initial

domestic route in Pakistan was established, from Karachi to Lahore to Peshawar, and

from Karachi to Quetta to Lahore.

The government of Pakistan, realizing the operation was failing economically, asked the

airline to merge into a new national airline that the government was planning. On March

11 of 1955, Orient Airways merged with the Government's proposed airline, becoming

Pakistan International Airlines Corporation. During the same year the airline opened its

first international service, under the PIA name, from Karachi to London Heathrow

Airport in London, United Kingdom, via Cairo International Airport in Cairo, Egypt and

Leonardo Da Vinci International Airport in Fiumicino, Italy using Lockheed

Constellations. The DC-3s continued operating the domestic services in Pakistan.


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The most important element of any airline service is the aircraft itself. Currently PIA has

43 aircraft in its fleet.

Problems that are facing by Pakistan International Airline:

PIA is facing serious problems. The major problems faced by PIA are increase in oil

prices, overstaffing, devaluation of local currency, political interference and its weak

financial position since the last decade.. The bad governance, poor performance and

corruption are the major causes of its failure. The Pakistan International Airlines is a big

organization with more than 18000 employees. PIA was known all over the world for its

excellent performance and superior quality. That was the golden period for PIA. But now

it has lost his lustre.

Problem Description:

The Pakistan International Airlines is suffering from severe financial crisis. It is, in fact,

passing through a critical phase because of poor management, lack of maintenance,

nepotism, corruption and financial issues. There are complaints of terrible service, long

delayed flights, emergency crash landings, cancellation of flights, shortage of planes,

unclean toilets that smell from a distance and non-serious attitude of the administration.

These issues create frustration among the passengers. They feel fear and life risk while

travelling through PIA. The Airlines is at the brink of disaster..

The problems for Pakistan International Airlines include:

y Over recruitment:Pakistan International Airlines is a large organization with 18,043 employees. Its fleet

comprises of 43 planes. It operating planes are just 33. It means round about 525

employees per plane. The industry average is being between 150-250 people. This

describes the position of the company clearly. This drives the cost of the company

further.

y De-motivated employees:Pakistan International Airlines is a company which is constantly going in loss. Higher

number of employees and the company already going in loss de-motivates the

employees. The employees do not feel secure themselves in the company and try to

move to other successful organizations. Also certain issues such as centralized


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decision making and salary issues also de-motivate the employees taking their

attention away from their job.

y Nepotism and Political involvement during recruitment and selection:Pakistan International Airlines being the government organization has the strong

influence of the politicians and government officials. Reports say that Mr. Tariq

Kirmani was appointed chairmen PIA due to being a friend of Prime minister.

Similarly Mr. Kirmani appointed his own friend Director MIS at a heavy salary.

Selection and recruitment is not done on merit. Current deputy managing director is

another example of this who was a pilot by profession and now deputy managing

director still flies some hours a week to keep his license on.

y Lack of experience relating to aviation industry for the top management:Look at the background of former three chairmen of PIA. Mr. Tariq Kirmani was

from PSO, Mr. Zafar Khan was from PTCL and Mr. Ahmad Saeed was from Service

industry having no experience of aviation industry. What could they contribute to the

organization with no such knowledge?

y Lapses in the management:The PIAs management is ineffective to resolve and plan at the right time. Planes with

damaged Nose Randome are grounded for consistent 9 days. For an Airline with

cargo aircraft and a frequency of eight weekly flights to USA, such an inordinatedelay in procuring Nose Radome is amazing to say the least. New flights to America

are thought to start but with American aviation industry there is no talk. Strikes by

engineers happen due to the mismanagement and cause a great loss to the company.

Million of rupees worth cargo off loading from A VVIP flight is another example of

this.

y Low scale advertisements and awareness:A common Pakistani may even not know about Pakistan International Airlines. No

advertisements and awareness to the organizations brands in such a modern era of

marketing. Cricket stars and sportsmen are hired on heavy salaries but with no profit

to the organization. Pakistan International already being an ethnic airline is just


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confining itself to its own country. No such efforts to enhance the brighter and soft

image of the nation as well as airline are made.

y Governments and Civil Aviation authority policies:Pakistan International Airlines has to pay a big amount as an expense on its

borrowings from banks. Already being in such a big crisis, the company is getting no

support in this regard like WAPDA is getting. Also civil aviation authority of

Pakistan policies are hampering PIA a great deal. Pakistan International Airlines

being a national carrier has to go to those routes which are going in loss. Routes such

as, Swat, Bahawalpur, Dalbandin etc are called socioeconomic routes and PIA has to

get to those routes despite of great loss. On these airports, airport staff is greater

numbers as compared to passengers. The money which is received as for providing

services to passengers is taxed by the government at a very high rate.

y Rising fuel prices in the World:There is been consistent rise in fuel prices in the international market. Fuel prices

have impacted on almost every airline in the world. This has affected Pakistan

international Airlines more than any other airline due to its aged fleet. New planes are

fuel efficient as compared to old ones. In an airline normally 30-35% of expenses

account for fuel expenses but in Pakistan International Airlines this number goes to

45-50%. Due to these factors PIA has to charge more fare to customers thatsdissatisfies the customers.

y Global impact of 9/11 on aviation industry:After the 9/11 attacks air traffic has been decreased all over the world. It has affected

Pakistan international Airlines also. Passengers are more inclined towards traveling to

other countries such as European countries. Air traffic in Asia, especially in south

Asia has decreased.

y Aged fleet:Pakistan International Airlines fleet has total 43 planes. Out of those 43, only 33 are

operating at the moment. The average age of the fleet is 13 years which has become

13 years with the induction of 4 new planes. Previously it was 14. Due to aged fleet

the fuel is consumed more and maintenance expenses are increase. Thus theses


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factors result in increment in expenses. Due to the aged fleet and maintenance

problem PIA has to pay higher amount in terms of insurance cost.

y Maintenance problems:Beside having a large number of engineers, there is always been a question mark on

PIAs fleet maintenance. Last year European Union banned 20 out of 42 planes were

banned from operating in Europe. This results a 4 billion Rs. loss to the company just

from Europes segment to the company. This ban was imposed just due to the lack of

proper maintenance.

y Corruption at its peak:Corruption is a sin that has hollowed Pakistani society bases. Like all other

departments of our country corruption is at its peak in Pakistan International Airlines.

Sale of Roosevelt hotel in Dubai is a clear example of it. The hotel was valued about

1 billion but it was sold only in 40 millions. The sale of PIAs kitchen centre in

Karachi is another example of this. There a profit making unit of the company was

sold. It was generating great revenues for the company but was sold confidentially.

y Less technology advanced as compared to its competitors:PIA is competing with the airlines from all over the country especially with the

Middle East airlines which are coming in with heavy investment. Its competitors such

as Emirates and Qatar airways have great capital. Theses Middle East organizationsare putting in newer and newer technology and acquiring greater manpower. PIA

being already in a financial crunch faces a tough task.

y Poor image:With already going in financial loss, 9/11 impact on the industry and above all

incapability of Pakistan International Airlines management has badly damaged the

image of the Airline. Due to all such problems the fares of PIA are higher but service isnot up to that class. This also gives a bad image to the passengers.

y Lack of training facilities:Although PIA is running a training and development department in Karachi but it is insufficient to feed such a big organization with almost 18000 employees. Special skills

such as engineering, technicians are lacking. If they are there, they are not delivering.

y Delay in flightsFlight delays and cancellations have become the norm rather than the exception.

y Repair and Maintains:


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PIA has problem of maintenance and repairs. It is stated that tender for the

maintenance of the aircrafts has been given to a company that does not have

international reputation. It is further stated that PIA tends to sublet dubious and

substandard companies with no international credibility and little experience for

maintaining its fleet.

y In side Plane environment :Sagging seats and soggy seat covers, messy floor carpets, dirty and gritty outlook,

malfunctioning toilet doors, rattling planes and failing equipment need

refurbishment, better maintenance and planning. It is necessary for PIA

administration to put on considerable effort to avoid anxiety of the travellers.

y Over employees:y The average ratio of staff should not exceed 100 per aircraft while PIA enjoys

more than 500 employees per aircraft.

Reasons behind this failures

Unfortunately PIA is functioning with costs higher than returns. PIA claims that

increase in oil prices and devaluation of Pakistani currency are the major reasons

behind its deficit. It needs remarkable effort and money to improve its ranking in

the world airlines.


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Building Brand Equity

1) CORPORATE VISIONOF PIA:

To be a world class airline exceeding customer expectations through dedicated

employees Committed to excellence.

2) CORPORATE MISSIONAs a Symbol of National Pride, We Aspire to be a Choice Airline, Operating Profitably

on Modern Commercial concepts and Capable of Competing with the Best in the

International as well as Domestic markets.

3) VALUES:. Customer Expectations:

PIA is the most trusted name in the industry. The reason of

its goodwill is according the expectation of their customers that PIA has fulfilled always.

By providing competitive tariff, extensive care, and convenience to their valued and

potential customers.

Service:

PIA aims at providing valuable and unique services to its customers. They

are more personalized and courteous to their customers. The services are valuable and

rare; this is the reason why customers trust PIA.

28 Nov 2004, Pakistan International Airlines - PIA passed the IATA Operational Safety

Audit (IOSA) benchmark for global safety management The IATA Operational Safety

Audit (IOSA) is the benchmark for global safety management in airlines

KARACHI, 22 October 2007 Abacus Pakistan officially launched Abacus Travel

Secure with AIG, providing local travel agents and travelers easy and convenient access

to AIGs travel insurance policies. Available for the first time in Pakistan, Abacus Travel

Secure brings real time and immediate activation of travel insurance policies to the


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Pakistan travel industry with a more streamlined and time saving application process for

travel agents

Innovation:

PIA currently has a number of 43 fleets and aims at increasing this

numbers to 53 by the next few years.PIA is adoptive to changes and believe in innovation

thats create new ideas and translating these ideas into action.

Reliability:

PIA is

the most

experience airline

with its service

with more than 53

years. This has built in

PIA has become

the most reliable

airline. PIA is known

for its loyalty and

consistency.

Safety:

The most challenging responsibility of any organization is to provide

complete satisfaction to its employees and customers together. This satisfaction rewards

favorable and easy working conditions.


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The in-flight services are customers friendly and the organizational the organizational

environment is also employees oriented.

Cohesiveness:

PIA has 12 departments working in their own direction and also

provides a number of services including speedex courier service, catering etc. The most

impressive part is these all department and services are integrated in a cohesive way.

Services

PIA offers two types of services.

y Business Class y Economy Class

i) Business Class

Its the only Business Class service that feels like First Class. A comfortable seat makes

all the difference on a long flight. PIA's Business Class Seats elevate the concept of

luxury to a new level, fully endorsing your decision to choose PIA Business Class Sit

back and relax in our exclusive Business Class Lounges at the Karachi, Lahore, and

Islamabad airports.Our hospitable staff will ensure that you're well looked after during your stay with us at

the airport Business Class passengers arriving at Airport will receive a warm welcome

from PIA.

Our representatives will walk you right through all the arrival formalities so that you

don't have to stand in line or worry about clearance.

ii) Economy Class:PIAs economy class is also comfortable for passenger as

Business class. Economy Class offer seats with a 32-inch pitch, adjustable footrests and

"winglet" headrests for improved neck comfort. The personal TV provides on-going

entertainment including audio and video on-demand choices.


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Passengers enjoy the same caring service from our flight attendants, along with skillfully

prepared meals and a wide range of in-flight entertainment options to choose from. Free

newspapers are also provided to all Economy class passengers.

The PIA in-flight magazine, Hamsafar, is provided to all passengers on all international

flights. Humsafar was introduced on PIA flights in 1980 and it is published bi-

monthly.PIA is providing its service in twenty-five cites of Pakistan domestically.

MAJOR COMPETITORS:

PIAis holding the first position in

market. It has 48% market share. Its

major competitors are Airblue and

Shaheen International Airline. Airblue

has a market share of 35% while

Shaheen International Airline has 17%

market share. People feel prestigious to

travel with PIA as compare to Airblue

and others.

PIA operates in two major markets;Domestic and International. Pakistan

International Airlines has the lions

share in the domestic market. As it is the

oldest and the pioneers it has the better

fleet as compared to its competitors who

are comparatively newer in this segment.

Besides this, Pakistan International

Airlines has a huge network of flights

through out the country. The number of

flights remains the same during on-

season and off-season.

Internationally also, Pakistan

International Airlines is encountered

with a severe and strong challenge with

many renowned international names.

Pakistan International Airlines faces

competition with not only international

airlines but also with local airlines on the

various routes to the Middle East and the

Gulf.


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LATEST PRODUCTS BY PIA NAD QULAITY ACHIEVEMENTS:

y Boeing-777 operating to middle easty Flight Barcelonay Linking Abu Dhabi and rahim yar khany Flights from D.I.Khan to Peshawar and Islamabady Early buy cheaper flyy Bradford- Islamabad Nov stop! Pak & Glasgowy Flight from Multan and D.G khan to Dubaiy Lowest business class fare paksitan Dubaiy

Connecting Multan and Quetta, Islamabad with Chitral and Nawabshah with Hyderabad.y Promoting web ticketing and SMS booking, Ticketing delivery at Door step

IATA Operational Safety Audit (IOSA) benchmark:

28 Nov 2004, Pakistan

International Airlines - PIA passed the IATA Operational Safety Audit (IOSA) benchmark for

global safety management The IATA Operational Safety Audit (IOSA) is the benchmark for

global safety management in airlines.

E-Ticketing:

KARACHI, 22October 2007 Abacus Pakistan officially launched

Abacus Travel Secure with AIG, providing local travel agents and travelers easy and convenient

access to AIGs travel insurance policies.

Available for the first time in Pakistan, Abacus Travel Secure brings real time and immediate

activation of travel insurance policies to the Pakistan travel industry with a more streamlined and

time saving application process for travel agents.

STRENGTHS:


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.LEADINGMARKET POSITION:

PIA is one of Pakistans leading air carriers, with

more than 800 daily flights. Around 150,000 passengers a month fly on PIA, making it one of the

major operators in the domestic market in terms of passenger kilometers.

Its strong market position is driven by consistently low fares as well as reliable service..

i) BRAND RECOGNITION:

PIA has high brand recall. It is recognized by travelers all

over the country. PIA is a national airline, operating passenger and cargo services covering

eighty-two domestic and foreign. PIA has earned the number one ranking in customer

satisfaction. This strong market position gives the company a scale advantage and helps it

strengthen its brand image.

ii) SUPERIOROPERATING STRUCTURE:

PIA has maintained its position as the low

cost carrier. It has been first class Pakistani airline to use the latest technology. Factors

contributing consists of different series of Boeing and Airbus and an efficient, high-utilization

and point- to-point route structure.

iii) NETWORK PRESENCE:

PIA enjoys a strong network in key domestic and

international destinations. The companys network includes three the major airports in Pakistan,

as well as major international airport such as Dubai International Airport. Having a strong

network means that PIA can generate traffic feed for both its domestic and international Flights.

iv) HUB AIRPORT AT KARACHI:

PIA operates from its hub in Jinnah International

Airport, Karachi. Jinnah International is one of the worlds busiest airports in terms of number of

passengers carried. It is also one of the largest international gateways to Asia. It is also the

leading international air passenger (and cargo) gateway to Pakistan. The companys strong

presences in airports with heaviest traffic levels in Pakistan give it a competitive advantage.


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v) EFFECTIVE USE OF TECHNOLOGY:

PIA has successfully incorporated latest

technology in all its systems, giving it an edge over competitors. PIA takes credit for introducing

most new technologies to the Pakistani market. It was the second carrier in Pakistan to

incorporate the c-ticketing system and the second in South Asia to introduce self check in

systems at the Jinnah International Airport, Karachi.

Strengths:

The first airline from an Asian land country and the first airline from a Muslim country to

fly the Super Constellation.

The first Asian airline to operate a jet aircraft.

The first Asian airline to be granted maintenance approval by the US Federal Aviation Administration (FAA)

and the Air Registration Board, predecessor of the British Civil Aviation Authority (CAA).The first non-communist airline to fly to the People's Republic of China, and to operate a service between Asiaand Europe via Moscow.

The first airline in Asia to induct the new technology Boeing 737-300 aircraft.

An IBM 1401, the first computer in Pakistan, was installed in PIA.

The first airline to introduce a second route to People's Republic of China over the mighty Karakorammountains.

The first airline to show in-flight movies on international routes.

PIA set up Pakistan's first planetarium at Karachi.

The first airline in South Asia to introduce auto-ticketing facility.

The first airline in the world to fly to Tashkent, capital of the newly independent state of Uzbekistan.

First airline in the world to start Air Safari with jet aircraft.First Asian airline to start flights to Oslo, the beautiful capital city of Norway.

First airline in the world to induct Boeing 777-200LR, the world's longest range commercial airliner.

First airline in South Asia to offer the facility of seat reservation through mobile phone.

pakistan international airline new

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