PAKISTAN INTERNATIONAL AIRLINES

BYSHUBHAM BANERJEE

COMPANY PROFILE
‡ PIA is a national airline, operating passenger and cargo services. ‡ Established in 1955 by Md. Ali Jinnah. ‡ Primary Airbase is Jinnah International Airport in Karanchi ‡ PIA is a huge corporation more than 17,000 employees. ‡ PIA is the 16th largest Airline in Asia.

ORGANIZATIONAL STRUCTURE OF PIA

VISION & MISSION
‡ VISION
- PIA's vision is to be a world class airline exceeding customer expectations through dedicated employees, committed to excellence.

‡ MISSION
Employee teams will contribute towards making PIA a global airline of choice. Offering quality customer services and innovate products. Participating in global alliances. Using state of art technologies. Ensuring cost effective measures in procurement and operations.

VALUES OF PIA
‡ Customer Expectation. ‡ Service. ‡ Innovation. ‡ Cohesiveness. ‡ Integrity. ‡ Reliability. ‡ Safety.

STRATEGY ADOPTED BY PIA
‡ Restored 11 PIA aircrafts, while it continues to restrict 9 aircrafts for its territory, causing decline in PIA business. ‡ PIA considered to finance 25 percent annual fuel to control its expenditure. ‡ PIA in latest strategy abolish all the discount tickets and restricted its routes to those territories which provides benefit. ‡ The board of directors decided to reduce the aircraft age by 10 years against 30 years previously, to increase reliability. ‡ All 737 aircrafts would be replaced by Boeing 777 and Airbus 310 by 2009.

‡ Pakistan International Airlines management developed a six member committee for choosing and acquiring Boeing 777.

‡ The Boeing company worked as a true partner for giving solution and assisting in effective fleet replacement.

AIRBUS- 310

An eye on the future
Despite the financial challenges PIA faced, the airline identified an aggressive route-expansion plan. PIA specified new long-haul routes that linked Pakistan to Europe, the United States and the Far East. The carrier also had an eye on pursuing regional short- and mediumrange routes to better serve the Middle East, the Gulf region, South Asia and domestic routes; new feeder routes for undeveloped areas of Pakistan; and strengthened operations for its cargo markets.

SWOT ANALYSIS
Strength : 
New age of Aircrafts Boeing 777 & Airbus 310  Boeing Company is acting as a partner for technological assistance.  Strong relations with Citibank for Aircraft financing.  Qualified the IATA Operational Safety Audit(IOSA) requirements and

standards.  Network Presence.

Weakness : 
  

Flight Delays. Old food menu and poor quality. Poor Customer Service Associates. Small sized toilets.

Opportunities :  Online Booking of tickets from any where in world.  Very few domestic competitors.  Only Airline to connect Pakistan with Western Countries.

Threats :  Number of new domestic entrants.  Constant Up gradation by competitors.  Decline in Airline Industry.

PEST ANALYSIS
Political 1. Increased Competition 2. Political Stability 3. Increased Investment opportunity Social
1. Greater Customer Awareness 2. Increased Entertainment Spending 3. Technology Averse Customer

Economical
1. Improved Purchasing Power 2. Demand Value For Money 3. Soaring Oil Prices 4. Reduced Ticket Rates

Technological
1. In-flight Entertainment 2. E-ticketing (SABRE system) 3. Automated Check-in 4. SMS services

‡ Foreign carriers ‡ Regional carrier start ups

‡ Aircraft Manufacturers ‡ Airports ‡ Food Service Company ‡ Oil Suppliers

Potential New Entrants
‡ Travel Agents ‡ Business travelers ‡ Pleasure Travelers

Competitors Bargaining Power of Suppliers

‡ AirBlue ‡ Shaheen Air International ‡ Aero Asia International

Bargaining Power of Buyers

‡ Pakistan Railway ‡ Ships ‡ Buses

Substitute Services

PAKISTAN INTERNATIONAL AIRLINES FIVE FORCES MODEL OF COMPETITION

COMPETITIVE ANALYSIS
Attributes
Destinations Punctuality Quality of Food Customer Service Economical Tec Advancements Services Corporate Image AirBlue 5 7 7 5 6 7 5 3 PIA 7 5 6 6 5 5 6 7 Shaheen Air 5 6 4 5 6 5 4 4 Aero Asia 5 4 3 6 7 5 4 6

PERPETUAL MAPPING

Destination

Punctuality

PERPETUAL MAPPING

Food Quality

Customer Service

PERPETUAL MAPPING

Economi cal

Tech. Advancements

PERPETUAL MAPPING

Services

Corp. Image

DOMESTIC COVERAGE OF PIA

INTERNATIONAL COVERAGE OF PAKISTAN INTERNATIONAL AIRLINES

RECOMMENDATIONS ‡ Decentralization ‡ Employee Empowerment ‡ Overhead Costs ‡ Two-Way Communicaton

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