Pakistan International Airline

Report
 Submitted To

Mr. Aitzaz Khurshid

Submitted By

Bilal Ahsan

073330

Sabahat ullah Khan

073328

Shoaib Tauseef

073307
First of all we are thankful to Allah then we would like to
record our heartful thanks to our advisor on
Specific section specially our respected Professor
“Mr. Aitzaz Khurshid”
and the Brand Managers of PIA
“ Rana Mustafaa Yousuf Khan”
(Senior Brand Officer, Brand Management)
& all Members of marketing department.
 Table of Contents

Company Profile……………………………………………….………1

Products and Services offered by PIA…………………………..……1

 Fleets
 Business Class Services
 In-flight Dining
 In-flight Entertainment

PIA’s Network………………………………….………………………2
 Domestic Network
 International Network

Hierarchy of PIA…………………….…………………………............3

Vision Mission & Values………………………………………………4

 Corporate vision of PIA
 Corporate mission of PIA
 Values

SWOT ANALYSIS…………………………………….………………5
 Strengths
 Weaknesses
 Opportunities
 Threats

Pest Analysis………………………………….……………………….10
 Political Factors
 Economic Factors
 Social Factors
 Technological Factors

Market Segmentation of PIA………………………………………….12

  Demographic Segmentation of PIA:
 Geographic Segmentation
 Behavioral Segmentation
 Psychographic Segmentation of PIA

Targeting Strategy of PIA……………….……………………………13

Positioning of PIA……………………………………………………..13
 PIA’s existing Positioning Strategy
 Positioning by Attributes
 Positioning by Price and Quality
 Introduction of Additional Low Cost Flights
 Positioning by Product User

Competitors Analysis………………………………………………….15
 Domestic Competitor
 International Competitors of PIA

RECOMMENDATIONS FOR PAKISTAN INTERNATIONAL

AIRLINES……………………………………………………………...17
 Decentralization
 Strategic Business Unit
 Employee Empowerment
 Overhead Costs
 Two-Way Communication

Findings OF Research…………………………………………………18

Comparison of PIA with Different Airlines………………………….19

Questionnaire for Research…………………………………………...20

References……………………………………………………………....22
 COMPANY PROFILE

Pakistan International Airlines Corporation is a Pakistan-based company that is

principally engaged in the provision of air transport services. Other activities of the
Company include provision of engineering and other allied services. The Company
operates in two business segments: airlines operation and hotel operation. The airlines
operation segment provides air transport and other allied services. Hotel operation
segment provides accommodation and related services in Pakistan, United States and
Europe. Its wholly owned subsidiaries include Sky rooms (Private) Limited and Midway
House (Private) Limited. Pakistan International Airlines Corporation has a 99% interest
in PIA Investments Limited.

Products and Services offered by PIA

Fleets

PIA's fleet of modern aircraft is spacious, comfortable, and designed to get you to your
destination safely. PIA operates a range of advanced aircraft, ranging from the world's
preferred Boeing 777 airplane to the super-quiet Airbus A-310. Currently PIA has 42
aircraft in its fleet.

Business Class Services

PIA’s Business Plus class offers a range of exclusive services, from the time you leave
your home till you land at your destination. It’s the only Business Class service that feels
like First Class

In-flight Dining

You're in For a Special Treat!

Whether you are traveling within Pakistan or around the world, PIA's in-flight dining
menu is sure to tantalize your taste-buds. Enjoy the best of what Pakistan has to offer, as
well as a delectable selection of international cuisine.

In-flight Entertainment

Let the fun begin!

Aboard a PIA flight, there is so much to do that you really won't feel like landing.
Movies, Music, Games, Duty-Free Shopping, Tourist Information, Maps, and Real-Time
Flight Information will keep you entertained for hours.
 PIA’s Network

Domestic Network

International Network
 Hierarchy of PIA

This organization is divided into following departments: Human Resource and

Administration, Marketing, Corporate Planning, Information Services, Finance, Flight
Services, Flight Operation, Engineering, Procurement and Logistics, Customer Services,
Training and Development, Quality Assurance.

The organogram of the organization follows, with the Chairman at the top and directors
of departments reporting to him. The structure is centralized with the top-level
management making the decisions.
 Vision Mission & Values

CORPORATE VISION OF PIA

‘To be a world class airline exceeding customer expectations through
dedicated employees
‘Committed to excellence’

CORPORATE MISSION

“As 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.”

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.

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 that’s 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. 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.
 SWOT ANALYSIS

Internal Factors External Factors

Strengths Opportunities
1. Leading Market Position 2. Brand Having the maximum route and fleet
Recognition 3. Superior Operating Growing demand for low cost airlines
Structure Customer loyalty
4. Network Presence 5. Hub airport at Shifting customer needs
Karachi Industry Recovery

Weaknesses
1. Formulation of Govt. Rules
2. High dependence on Passenger
…Revenues 2. Debt
3. Reliance on Oil Prices
Threats
1. High Interest Rates 2. Accidents
3. Strong Competition by Air-blue 4.
. Interest and foreign currency
exchange rates 5. Decline in airline
industry ing strategiesNGective
i.e.

A.STRENGTHS

LEADING MARKET POSITION

PIA is one of Pakistan’s 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. PIA’s international market share was
43.5%, In the Domestic market, its market share was 69.4%. On a system-wide basis,
PIA’s market share was 51.2% at the end of year 2007.
Its strong market position is driven by consistently low fares as well as reliable service,
frequent and convenient flights, use of new technologies like e-ticketing and self check-in
terminals, comfortable cabins and superior customer service.

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.
SUPERIOR OPERATING 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.
Flying one type of aircraft significantly simplifies scheduling, maintenance, flight
operations, and training activities. PIA has continually achieved high asset utilization and
employee efficiency. Superior operating structure serves as the primary competitive
advantage of PIA.

NETWORK PRESENCE

PIA enjoys a strong network in key domestic and international destinations. The
company’s 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.

HUB AIRPORT AT KARACHI

PIA operates from its hub in Jinnah International Airport, Karachi. Jinnah International is
one of the world’s 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 company’s strong presences in airports
with heaviest traffic levels in Pakistan give it a competitive advantage.

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.

B. WEAKNESSES

FORMULATION OF GOVT. RULES

The Basic flaw of this organization is its consolidation that is centralized system. The key
policies, strategies and set of laws are designed by the upper management. The
centralized system is one of the biggest obstacles of long term success of PIA. PIA
centralizes structure lead to barrel between different level of management, decreased
motivation, hard access to information.
HIGH DEPENDENCE ON PASSENGER REVENUES

Passenger revenues accounted for 87 percent of the PIA’s total revenue in 2007. Cargo
services allow airlines to generate additional revenues from existing passenger flights. In
addition, cargo revenues are usually counter cyclical to passenger revenues and have
lower demand elasticity than passenger business, which allows airlines to pass on fuel
price hikes to customers.

DEBT

PIA has a significant amount of 42 billion debts. Current and future debts could have
important consequences for stakeholders of the company. For example, debt could impair
PIA ability to make investments and obtain additional financing for working capital,
capital expenditures, acquisitions or general corporate or other purposes. Debts could also
put PIA at a competitive disadvantage to competitors that have lesser debt and could also
increase the company’s vulnerability to interest rate increases.

RELIANCE ON OIL PRICES

PIA’s sustainability, growth and revenues directly depend on oil prices. A steep rise in oil
prices can seriously damage the long term viability of any airline. Recently many airlines
around the world went bankrupt due to rising oil prices. Airlines need to hedge against
this risk by taking proper measures.

C. OPPORTUNITIES

HAVING THE MAXIMUM ROUTE AND FLEET

PIA is having the maximum route and fleet domestic and international destinations
network in Pakistan as compared to its Competitors. Route and fleet expansion will
positively impact the company’s operations by increasing revenues.

GROWING DEMAND FOR LOW COST AIRLINES

The growing demand for air travel is driven by lower fares and consumer confidence. A
survey by International Aviation Authority showed that ticket price is the number one
criterion for passengers when selecting a flight, well ahead of the availability of a non-
stop service.

CUSTOMER LOYALTY
PIA’s frequent flyer and loyalty programs can help it retain customers. PIA’s
Awards+plus (frequent flyer program) was established to develop passenger loyalty by
offering awards and services to frequent travelers. Such schemes encourage repeat travel
on PIA, as passengers seek to accrue the benefits given to regular travelers. This enables
the airline to retain customers and reduce costs, as it does not have to spend money
targeting new customers to replace those lost to other airlines.

SHIFTING CUSTOMER NEEDS

The needs of air passengers are increasingly changing, as they are becoming more and
more price sensitive. If PIA succeeds in making its prices more competitive, then the
company will be able to gain significant market share.

INDUSTRY RECOVERY
Market analysts believe that the global airline industry will experience an upturn in
fortunes over the next few years. This represents an opportunity for PIA, as it could
generate increased revenues and command market share if it capitalizes on increases in
demand.

D. THREATS

HIGH INTEREST RATES

The past few years have seen State Bank of Pakistan impose high as well as low interest
rates to check inflation and the over heating of Pakistani economy. Inflation in Pakistan
may see another raise in the short-term.

ACCIDENTS

There had been five accidents with PIA listed as below:

• Pakistan International Airlines Flight PK 705 was a Boeing 720 – 040 B that crashed
while descending to land on Runway 34 at Cairo International Airport on May 20,
1965 resulting in 119 fatalities.
• Pakistan International Airlines Flight PK740 was a Boeing 707-340C that crashed
after takeoff from Jeddah International Airport on November 26, 1979. All 156
aboard were killed.
• Pakistan International Airlines Flight 268 was an Airbus A300B4-203, registration
AP-BCP, which crashed on approach to Kathmandu's Tribhuvan International Airport
on September 28, 1992. All 167 on board were killed.
• PIA Flight 554 is the flight number of a Pakistan International Airlines (PIA) Fokker
F27 that was hijacked on May 25, 1998. The flight started its journey at Gwadar in
Balochistan after originating in Turbat, and was flying to Pakistan's southern port city
of Karachi. The aircraft was carrying 24 passengers and 5 crew members.
• Pakistan International Airlines Flight 688 (PK688, PIA688) was scheduled to operate
from Multan to Lahore and Islamabad at 12:05 pm on July 10, 2006. It crashed into a
field after bursting into flames a few minutes after takeoff from Multan International
Airport. All 41 passengers and four crewmembers on board were killed.
PIA has to continuously ensure utmost safety and security of its passengers. Accidents
can adversely affect customer confidence in PIA and result in declined revenues
intensifying competition.

STRONG COMPETITION BY AIRBLUE

PIA is now competing against carriers such as Airblue and Shaheen Airline. PIA remains
Airblue’s strongest competitor because of the huge market it has gained over time, strong
brand image and customer loyalty.
PIA has started new low-fares subsidiary “PIA Express” to stop the Airblue market share
growing to fast. Moreover, major legacy airlines have been focusing on restructuring
costs, which has improved their competitiveness. With costs restructured, the legacy
airlines are becoming more formidable competitors in terms of increasing capacity,
matching prices and leveraging their frequent flier programs. Increasing competition
could adversely affect the company’s margins.

INTEREST AND FOREIGN CURRENCY EXCHANGE RATES

Fluctuating foreign currency exchange rates can have a significant impact on PIA’s
earnings. For example, as PIA is providing its services to the UK. Negative or positive
effects arise from exchange rate movements as change in expenses. Strengthening of
foreign currencies against the British Pound will positively impact PIA and vice versa.

DECLINE IN AIRLINE INDUSTRY

A number of factors have caused the current decline in the airline industry. For example,
the threat of further terrorist attacks since September 11 and a fall in the number of
business travelers have both caused passenger numbers to fall. These and other factors
may continue to affect demand for air travel in the future, which will affect revenues of
PIA. The threat of terrorism may discourage people from traveling by air and could
especially reduce the number of passengers traveling on international flights.
 PEST ANALYSIS
The macro-environment includes all factors influencing a company that are not within its
control. These include political, social, economic and technological factors. These are
known as PEST factors. A technique of analysis of the macro environment is PEST
analysis. Environmental analysis should be continuous arid precede all aspects of
planning. Since the airline industry is very much influenced by changes taking place in
the environment and has undergone rapid and dramatic changes during the last decade,
this analysis is especially important for PIA.

Political
Increased Competition (Deregulation of
Social
airline industry) Greater Customer Awareness
Political Stability Increased Entertainment Spending
Increased Investment Opportunity Technology Averse Customers

Economical Technological
Improved Purchasing Power In-flight Entertainment
Demand Value-for-Money E-ticketing (SABRE System)
Soaring Oil Prices Automated (Self) Check-in
Reduced Ticket Prices a3 avel in South Asia SMS Services
rose. 11

POLITICAL FACTORS

Political factors always have a great influence on the way businesses operate in the airline
industry and the spending power of customers. In recent years it has been observed that
government played an active role in increasing competition in the airline industry. A
number of new airlines such as AirBlue and JS Air have been awarded licenses to enter
the domestic market. Pakistan has achieved some political stability in recent years. If the
management of PIA believes that the present government will perform well
(consistently), then there will be more investment in the form of purchase of new
airplanes and latest technology. The over all industry will grow resulting in more
luxurious and comfortable flights. With the military takeover government policies have
become more liberal.

ECONOMIC FACTORS

Currently, Airlines industry has three major players: Pakistan International Airlines, an
Airblue, Aero Asia and Shaheen Airlines. Their target market includes domestic travelers
as well as Pakistanis living abroad particularly in the UK and USA. These countries have
strong economies coupled with high purchasing power. Customers’ purchase behavior
depends very much on prices of the competing airlines as well as services offered. As
inflation rate is unstable in Pakistan, spending power of consumers has effected in the
long term. In fact growth in Pakistani economy has resulted in an increase in spending
power and has positively impacted the airline industry.
Economically, the new millennium has been highly volatile; the September 11 attacks
revolutionized the whole world. Consequently, there was a global depression in the North
America, South America, Australia and Europe. However, in Asia especially Pakistan the
effect in the short term was otherwise. The economy began to boom because of greater
remittances from abroad and whole sum immigration by expatriates. As a result, demand
for air travel in South Asia rose.
Economic conditions of Pakistan are however improving. PIA has cost a advantage over
its competitors because of its newly acquired, improved, long distance aircrafts from
Boeing’ which give longer range and better fuel economy than any other jet currently
produced. This cost advantage is a barrier to entry for new firms. However, this cost
advantage will not be significant on domestic routes.

SOCIAL FACTORS

The social arid cultural influences on business vary from country to country. The social
structure of Pakistan is closely tied. The trend is now changing as the general public is
educated and is pursuing professional goals. Customers are more aware of market
conditions and available options and want to get best value for their money. They spend
considerable time and money on entertainment hence increasing the need of in-flight
entertainment systems. Also, word of mouth has a significant impact in the use of airline
services. Hajj attracts a huge number of customers.
The social environment of Pakistan is turning liberal with the new regime. The initiative
to automate check-in and ticket booking process might not be very popular with the
general public (even educated population) is still technology averse. E-ticketing might
also face significant challenges as consumers are generally reluctant to provide their
credit cards information over the phone and the internet. The consumers, however, have a
warm reaction to the prospect of less costly but quality service flights.

TECHNOLOGICAL FACTORS

Technology is vital for competitive advantage and is a major driver of the airlines
industry. Major technological changes are taking place in the airlines industry with
innovations in the reservations and booking systems. In-flight entertainment systems and
auto check in counters are two examples of such innovations. Internet plays a key role in
e-ticketing as consumer can easily reserve tickets or check the status of the flight. A key
issue will be the extent, to which technological advancements (such as Internet) impact
distribution and cost synergies from industry consolidation, can offset upward pressures
on costs. PIA has always led the path of technological innovations by introducing new
technologies ahead of its competitors such as its auto check-in counters which has helped
it gain market share. It was the first airline in Pakistan to install Sabre system followed by
the market leader.
 Market Segmentation of PIA

Demographic Segmentation of PIA:

• Income Segmentation
• Occupation Segmentation

Geographic Segmentation

In this segmentation PIA focuses both on segments domestic and international

Behavioral Segmentation

• Occasion Segmentation.

 Hajj’s Occasion.
 Eid’s Occasion.
 New Years’ Occasion.

• Loyalty Status

Psychographic Segmentation of PIA

• Social Class

 Tourists
 Religious Travels
 Pakistani Expatriates

The existing market segmentation strategy of PIA is reasonable enough because it covers
all necessary parameters that are to be focused in doing market segmentation for Airline
Company.
 Targeting Strategy of PIA

PIA’s Existing Target Audience

From the Demographic Segmentation, PIA is targeting the income and occupation
oriented people. The classification of both categories is as follow.

• Income Segmentation

From income segmentation of PIA, those who falls under the category of upper class and
upper middle class.

• Occupation Segmentation

From occupation Segmentation that PIA is taking in to account, there are two main sub
heads of working class and business class. The working class includes all those who are
working as an employee inside and outside the country. In business class all those people
are included who are having business.

From the Geographic Segmentation of PIA. All the audience from the domestic and
international regions are included. In domestic people within the country are included and
people residing outside Pakistan.

From the Behavioral Segmentation PIA‘s target audience is categories as follow.

In the occasion based market segmentation of PIA.

• Hajj’s Occasion.

When Hajj operation in going all those people flying from different cities of Pakistan to
Saudi Arabia for the performance of Hajj.

• Eid’s Occasion.

When Eid occasions are near people within the cities and outside the country move to
their homes for having Eid Occasion together with family.

• New Years’ Occasion.

Now people prefer to have New Year with their family that’s why all those people coming
back to Pakistan from different countries or moving outside Pakistan to different
countries and also all those people moving within the country are targeted over here.

• Loyalty Status.

PIA gives different benefits to the fliers. But all those who travel a lot get the benefit of
frequent fliers which carries few discount rates on the tickets. To such audience PIA not
only gives the discount facility but also the facility of pick and drop to them.

From the Psychographic Segmentation of PIA, the target audience of PIA will be the
following.

• Social Class

In Social Class PIA targets the tourists, religious travelers and Pakistani Expatriates.

• Tourists

All the tourists from different regions of the country or from different countries come to
Pakistan for tourism purpose or go outside the country. Because PIA is having highest
rate of linking the remotes areas of Pakistan.

• Religious Travels

All the religious travelers for example people going for Hajj etc are targets over here.

• Pakistani Expatriates

As PIA is a national flag carrier airline that’s why people residing outside the country feel
a unique sort of feeling to get into the National Airline. PIA is not just and Airline but
also acts as the ambassador of Pakistan in the whole world.

Positioning of PIA

PIA’s existing Positioning Strategy

Currently PIA positions itself within the following positioning strategies.

• Positioning by attributes.
• Positioning by price and quality.
• Positioning by product user.
Positioning by Attributes

In this strategy PIA positions itself in the mind of the consumers as the reliable air
transport service provider. Because from all the airline companies of the world PIA has
the least crash rate. By positioning the reliability attribute of the airline in the minds of
the consumers, people prefer to travel from PIA. Because of the safety attached with the
PIA.

Attribute of safety is also associated with the airline as PIA has the following
certifications
.
• European Aviation Safety Agency (EASA)
• IATA Operational Safety Audit (IOSA)
• Civil Aviation Authority of Pakistan ( in accordance with the International Civil
Aviation Organizations Standards)

Positioning by Price and Quality

In this positioning strategy, PIA paints the image of being the less price taker and
providing high quality to the customers as compare to the competitors. Examples is given
below.

Introduction of Additional Low Cost Flights

“PIA express”

PIA has introduced additional low cost flights. PIA express at 20% less fare.

• This facility is available in Business Plus, Economy Plus & Economy C lass.
• No meals.
• Stand by fares applicable.

Positioning by Product User

PIA positions itself as an ambassador of Pakistan in the world. Pakistani expatriates
residing outside the country feels proud when they see an airline of their own home-
country carrying the national flag. This arises the loyalty factor in the hearts of the
expatriates and they prefer to travel by PIA.
 Competitors Analysis

Competitor analysis in marketing and strategic management is an assessment of the

strengths and weaknesses of current and potential competitors. Created by Michael Porter
competitor analysis focuses on four key aspects: competitor's objectives, competitor's
assumptions, competitor's strategy, and competitor's resources and capabilities.

Competitive Advantages of PIA

• Reliability an d safety
• Has best engineering facilities.
• Has best trained pilots.
• National flag carrier.
• Pakistani expatriates when step in the PIA plane they get they homely feelings
because of the national airline which plays a role of ambassador.
• High linkage to the remote areas of Pakistan.
• Using state of art technologies and highly equipped engineering.

Competitive Position of PIA

The competitive position of PIA is Differentiation because PIA has created highly
differentiation products e.g. for the economy class and for the business plus class. PIA
has different and unique product characteristics and features which cater the needs of the
respective customers.

Competitive Moves
PIA is having 48.4% market share internationally and 65% domestically, and PIA has the
Market Leader Competitive Move in Pakistan.

Competitor Attack Strategy

The attack strategy of PIA against its competitor Air Blue is Flanking Attack Strategy. Air
Blue has not that much access to the remote areas of Pakistan than PIA has. Due to this
weak point of Air Blue, PIA is attaining the flanking attack strategy against the Air Blue.

Existing Competitors of PIA

PIA operates both domestically and internationally. So it has different competitors on
both scales of operations.

Domestic Competitor

Within the country PIA has Airblue as a competitor. Airblue is a private airline based in
Karachi, Pakistan. It is a scheduled domestic and international airline operating 30 daily
services linking seven domestic destinations and international services to Dubai and
Manchester. Its main base is Jinnah International Airport, Karachi. Airblue was the first
airline in Pakistan to introduce e-ticketing, wireless check-in and self check-in kiosk
facilities.

Achievements and Recognitions

• Pakistan's fastest growing airline.

• First airline in Pakistan and only the third carrier in the region behind Emirates
Airline and Royal Jordanian to introduce the latest self service check-in facilities
at Jinnah International Airport, Karachi
• First private airline in Pakistan to fly long-haul international route (Islamabad-
Manchester) with a refueling stop at Ankara, this has since been moved to
Trabzon.

International Competitors of PIA

PIA is having market share of 48.4% in the international market and having tough
competition from its international competitors. Following international competitors of
PIA.

• Thai Airline
• Ethad Airways
• Qatar Airways
• Singapore Airline
• Emirates Airline
 RECOMMENDATIONS FOR PAKISTAN
INTERNATIONAL AIRLINES

Decentralization
PIA should decentralize its structure that would lead to the easy management, increased
motivation, easy access to information and resolution of the conflicts (as they would be
resolved by the immediate manger time span would then reduced). Since employees
issues regarding their behavior would lessen, so it would ultimately lead to more satisfied
employees that would result in enhanced productivity of the organization.

Strategic Business Unit

PIA should make its different departments into Strategic Business Unit. Every SBU
should have a defined business strategy and a manager with sales and profit
responsibility. As PIA is a large organization, so it must be convert into SBUs.

Different factors should be determined for the success of SBUs which as follows:
The degree of autonomy given to each SBU manager

The degree to which an SBU shares functional programs and facilities with other SBU's
The manner in which the corporation evaluates and rewards the performance of its SBU
managers

Employee Empowerment
PIA should make efforts towards empowering the employees that is going to lead to more
employee participation in the decision making process and also result in more employee
satisfaction and enhanced motivation. Apart from this, employees would feel more
independent to discuss the issues explicitly without hesitation. This would also enhance
team work process at PIA as quality team and cross-functional teams. The employees will
work with more commitment and dedication and every employee would work to his/her
fullest due to increased motivation. However, with empowerment comes accountability,
so it is suggested that while they empower their employees, there should also be a
“controlled check’’ on them to ensue the correct usage of power delegated to every
employees within their circumscribed limits.
Overhead Costs
PIA should also reduce its overhead costs that are it should mange its resources: labor
more effectively, so that with less input, more out put can be achieved and the saved
resources can be utilized in other areas such as introducing more training courses for the
employees so that the quality of the workforce could be increased. Hiring the services of
expertise can improve the efficiency of their services, so by saving the overhead costs,
they can utilize that money for the expertise services. So by analyzing the various
segments of the organization and making the right corrections, it can substantially
improve the standards of Organizational behavior.

Two-Way Communication
The suggestions of the employees can prove to be very effective in improving the
operations as they are the ones who manage them. Therefore, a top-down approach
should be replaced with two-way communications. In this way, the employees would feel
motivated and valued as they would be included in decision-making.

Findings OF Research

After conducting research, the following results have found which follows as bellow:

Selection of Airline
According to research in , 60% people utilize the services of PIA, 30% people utilize the
services of airblue and only 10% people utilize the services of shaheen International
Airline.

Reason for Selection of Airline

According to research in, 50% people selected the service of airline taking into
consideration the price, 30% people selected the service of airline taking into
consideration the service, and 10% people selected the service of airline taking into
consideration on many grounds which are related to their desired destination.
 Comparison of PIA with Different Airlines

After conducting the research we have rated the different airlines in the following
manner.

Attributes PIA AirBlue Shaheen Air

Destinations 6 5 4
Punctuality 5 6 4
Quality of Food 5 6 5
Hospitality/Customer Service 6 5 5
Economical 5 5 5
Technological Advancements 5 5 5
Services 5 5 4
Corporate Image 6 3 4
Total Points 43 40 36
 Questionnaire for Research

Pakistan International Airline Questionnaire

PLEASE SHARE YOUR EXPERIENCE, VIEWS AND COMMENTS
WITH US

Name: __________________________ Age: ___________ Sex: Male Female

Occupation: __________________________ Qualification: _________________

1. How often do you take airline travel?

Less than 1 month 2 month to 3 month
1 month to 2 month 3 month to 4 month
Or __________________________.

2. Which airline you always/usually select to travel (domestic)?

Pakistan International Airline “PIA”
Airblue
Shaheen Air International
Or Any Other ___________________________.

3. Is there any particular reason why you usually choose that PIA?
Service Price Other, please specify below

4. How did the selected airline price compare to your expectations?

1 (Excellent) 2 (Very Good) 3 (Good) 4 (Fair) 5 (Poor) 6 (Very Poor)

5. How did the selected airline Value for Price Paid compare to your
expectations?
1 2 3 4 5 6

6. How would you rate the overall value of the selected airline?
1 2 3 4 5 6
 7. What are good aspects of selected airline that attract you?

8. What are some aspects of selected airline that can be improved?

9. Do you think that all the above qualities exist in PIA, did you agree? If no,
so please specify it below.

10. How do you consider the price of PIA?

Very Expensive Expensive Average Low Very low

11. When I have a problem with travel arrangements, the airline shows
sincere interest in solving it?
Yes No Never had experience like this.

12. How will you compare PIA with different airlines in the following services?
(Please fill the table according to 1 for Excellent, 2 for Very Good, 3 for
Good, 4 for Fair, 5 for Poor and 6 for Very Poor.)

Attributes PIA AIRBLUE Shaheen Air

Destinations
Punctuality
Quality of Food
Hospitality/Customer Service
Economical
Technological Advancements
Services
Corporate Image
Safety of luggage

13. What are some important strategies that you would like to recommend?
 References

• www.google.com
• www.piac.com.pk
• www.wikipedia.org
• PIA Sales Promotion Officer, Lahore
• DAWN News Marketing Department (contact no: 5711579, 111365365)
• FM radio Marketing Department (contact no: 111111103)
• Jang News Marketing Department (contact no: 6367480)
• PTV Marketing Department