PAKISTAN INTERNATIONAL AIRLINES

FINANCIAL STATEMENTS
Pakistan International Airlines Corporation (the Corporation) was incorporated on April 18,1956 under the Pakistan International Airlines Corporation Act, 1956. Its shares are quoted in all the stock exchanges of Pakistan.57 % shares held by Government of Pakistan, and rest of 43 % shares held by Financial Institutions, Investment Companies, Individuals, Joint Stock Companies, Foreign Companies etc. As the government is the principal owner of the airline so the government selects the Board of Directors and the Chairman/CEO.

INTODUCTION

PROBLEM

Why PIA is facing loss from many years? How it can be improved

FINANCIAL RESULTS
YEAR REVENUE( PKR in million) EXPENSES( PKR in million) LOSS( PKR in million)

2011 2010 2009 2008 2007 2006 2005

116,551 107,532 94,564 88,863 70,481 70,587 64,074

143318 128317 100386 125002 83880 83350 68486

(26,767) (20,785) (5,822) (36,139) (13,399) (12,763) (4,412)

NO OF EMPLOYEES

Captains / Pilots / Co Pilots Aircraft Engineers Flight Engineers Airhostesses Flight Stewards Marketing, Finance, Supply Chain, Hr, Passport -Visa Total Number of Employees

538 697 90 1055 978 15,028 18,386

SURVEY(Questionnaire and interview)

PIA service is not as much competent as other Airlines Offering Poor quality service Bad airhostesses No luggage safety Flight delay

SURVEY(Questionnaire and interview)

PIA service is not as much competent as other Airlines Offering Poor quality service Bad airhostesses No luggage safety Flight delay

IMPROVEMENT

PIA should be privatized. Golden Handshake New Hiring Keep the Over Head Costs Low SBUs instead of Departments

GRAPH
Administrative Expenses No Of Employees

500000 350000 300000 250000 150000

11000 8000 7000 6000 4000

600000

500000

400000

300000

200000

100000

0 11000 8000 7000 6000 4000