Pakistan International Airlines(PIA)

8/14/2019 Pakistan International Airlines(PIA)

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PAKISTAN INTERNATIONAL AIRLINES

BY-SHUBHAM BANERJEE


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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.


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ORGANIZATIONAL STRUCTURE OF PIA


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VISION & MISSION

VISION

- PIA's vision is to be a world class airline exceeding customer expectationsthrough 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.


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VALUES OF PIA

Customer Expectation.

Service.

Innovation.

Cohesiveness.

Integrity.

Reliability.

Safety.


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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 10years against 30 years previously, to increase reliability.

All 737 aircrafts would be replaced by Boeing 777 and Airbus 310

by 2009.


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Pakistan International Airlines

management developed a six

member committee for choosingand acquiring Boeing 777.

The Boeing company workedas a true partner for giving

solution and assisting in effective

fleet replacement.

AIRBUS- 310


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An eye on the future

Despite the financial challenges PIA faced, the airlineidentified 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 medium-range routes to better serve the Middle East, the Gulf

region, South Asia and domestic routes; new feeder

routes for undeveloped areas of Pakistan; andstrengthened operations for its cargo markets.


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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.


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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.


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PEST ANALYSIS

Political Social

Economical Technological

1. Increased Competition

2. Political Stability3. Increased Investment

opportunity

1. GreaterCustomerAwareness

2. IncreasedEntertainmentSpending

3. Technology AverseCustomer

1. Improved Purchasing

Power2. Demand Value For

Money3. Soaring Oil Prices4. Reduced Ticket Rates

1. In-f light

Entertainment2. E-ticketing (SABRE

system)3. Automated Check-in4. SMS services


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PAKISTAN INTERNATIONAL AIRLINES FIVE FORCES MODEL OF COMPETITION

Competitors

AirBlue Shaheen Air

InternationalAero AsiaInternational

BargainingPower ofSuppliers

Aircraft Manufacturers

Airports

Food Service Company

Oil Suppliers

Potential NewEntrants

Foreign carriers

Regional carrier start ups

BargainingPower ofBuyers

SubstituteServices

Travel Agents

Business travelers

Pleasure Travelers

Pakistan Railway Ships Buses


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COMPETITIVE ANALYSISAttributes AirBlue PIA Shaheen Air Aero Asia

Destinations 5 7 5 5

Punctuality 7 5 6 4

Quality of Food 7 6 4 3

Customer Service 5 6 5 6

Economical 6 5 6 7

Tec Advancements 7 5 5 5

Services 5 6 4 4

Corporate Image 3 7 4 6


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PERPETUAL MAPPING

Punctuality

Destination


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PERPETUAL MAPPING

Customer Service

Food

Quality


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PERPETUAL MAPPING

Tech. Advancements

Economi

cal


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PERPETUAL MAPPING

Corp. Image

Services


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DOMESTIC COVERAGE OF PIA


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INTERNATIONAL COVERAGE OF PAKISTAN INTERNATIONAL AIRLINES


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RECOMMENDATIONS

Decentralization

Employee Empowerment

Overhead Costs

Two-Way Communicaton

Pakistan International Airlines(PIA)

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