GROUP 5

INTRODUCTION
Vision
&
Mission

Goals
&
Objectives
External Assessent


Porters Model










BARGAINING POWER OF SUPPLIER:

Intensity of competitive rivalry:

!REAS OF SUBSIUE PRO"U#S:

Political factors

ec$nolo%y

Social Forces
( High)

&acro environment



PIA
Economic factors
BARGAINING POWER OF BU'ERS:
!REA OF A NEW ENRAN:
B(siness %ro)t$ rate Pa*istan air lines
Conservative
De!ensive
Co"etitive
A##ressive
+,
+-
+.
+/
+0
+1
2,
2-
2.
2/
20
21
+-
+/
+1
2-
2/
21
$%&''( )&*'+
#ORE #O&PEEN#IES
3
4E' SU##ESS FA#ORS
Cor"orate c,lt,re
Strate%ies
Un5erta*en
MAR-ET ANA./0I0
MAR-ET
ANA./0I0
1INANCIA.
0trate#ies

2,siness Polic3
an4 0trate#3
S(6mitte5 o7
&R8 A$me5 Rana
Section 9A:
1INA. PRO5ECT REPORT
PA4ISAN INERNAIONAL AIRLINE Pa%e -
GROUP MEM2ER0
FA!A" I;BAL L,F<=&BA&-,=0
>O!AIB BAS!IR L,F<=&BA&<<?0
'AS&EEN SA""I; L,F<=&BA&---1
FAI&A AWAN L,F<=&BA&<<=,
AF>IA FAROO; L,F<=&BA&--01
E!SAN A4!AR L,F<=&BA&<,,0
A'ES!A RAFI;UE L,F<=&BA&<<1-
PA4ISAN INERNAIONAL AIRLINE Pa%e .
PA4ISAN INERNAIONAL AIRLINE Pa%e /
PA4ISAN INERNAIONAL AIRLINE Pa%e 0
PA4ISAN INERNAIONAL AIRLINE Pa%e 1
PRE1ACE
All praise is to Almi%$ty Alla$ for 6esto)in% (s )it$ t$e )is5om
to accomplis$ my tas*8
$e main p(rpose of t$e pro@ect is t$e f(lfillment of t$e
reA(irements of t$e B(siness Policy 3 Strate%y co(rse7 )$ic$ is
t$e part of o(r st(5y )or*8
PIA# is t$e national airline of Pa*istan8 $e information $as 6een
%at$ere5 from 5ifferent so(rces incl(5in% t$e )e6 site7 )e6
pa%es relate5 to t$e airline7 personal 5isc(ssion )it$ employees7
telep$one 5isc(ssion representatives an5 visit to t$e 6ranc$
office sit(ate5 in $e &all Roa57 La$ore8 We $ave incl(5e5 all t$e
information o6taine5 from t$e mentione5 so(rces an5 no part of
t$is pro@ect $as 6een a55e5 from o)n8
As re%ar5s t$e preparation of t$is pro@ect7 all t$e topics are
a55e5 in a proper seA(ence7 startin% )it$ t$e ta6le of contents7
incl(5in% t$e $istory7 overall vie)7 company information7
mana%ement $ierarc$y7 everyt$in% t$at )as reA(ire5 for t$e
completion of t$e pro@ect8
PA4ISAN INERNAIONAL AIRLINE Pa%e =
AC-NO6.EDGEMENT
We )o(l5 li*e to offer o(r $(m6le %ratit(5e to Alla7 Ali#7t37
t$e most Gracio(s an5 t$e most &ercif(l7 )$o %ave (s stren%t$
an5 ena6le5 (s to ac$ieve o(r %oals8
$e topic of o(r pro@ect )as t$e complete Strate%ic Analysis of
PA-I0TAN INTERNATION AIR.INE $PIA+ an5 its impact on
Pa*istan8 "(rin% o(r Pro@ect7 )e $a5 to face some 5iffic(lties as
5ata )as not rea5ily availa6leB )e $a5 to %o to PIA office to
collect 5ata after $avin% some soli5 reference an5 t$en sort o(t
relevant 5ata for o(r pro@ect8
We )o(l5 li*e to t$an* o(r *in5 Pro!& G&A8MAD RANA for $is
contin(o(s an5 pre2emptive an5 contin(o(s s(pport8 Wit$o(t $is
$elp )e )o(l5 not $ave 6een a6le to complete o(r pro@ect on
timely manner8 We are %ratef(l to employees of vario(s
5epartments of PIA t$at $elpe5 (s 5(rin% o(r fiel5 )or* an5
$elpe5 (s in ma*in% o(r pro@ect s(ccessf(l8
TA2.E O1 CONTENT0
PA4ISAN INERNAIONAL AIRLINE Pa%e ?
INTRODUCTION
Brief !istory88888888888888888888888888888888888888888888888888888888888888888888888888888 <?
Sit(ational Analysis888888888888888888888888888888888888888888888888888888888888888888 ,-
N(m6er of Employees8888 8888888888888888888888888888888888888888888888888888888888 ,.
Or%aniCational !ierarc$y888888888888888888888888888888888888888888888888888888888 ,0
Location of Office88888888888888888888888888888888888888888888888888888888888888888888 ,1
Nat(re of 6(siness8888888888888888888888888888888888888888888888888888888888888888888 ,D
ype of o)ners$ip88888888888888888888888888888888888888888888888888888888888888888888 ,D
4ey players2Boar5 of "irectors88888888888888888888888888888888888888888888888888 ,D
MI00ION 9 VI0ION 0TATEMENT -,
GOA.0 & O25ECTIVE0
E:TERNA. A00E00MENT
SEPLE Analysis888888888888888888888888888888888888888888888888888888888888888888888888
PorterEs 0 forces mo5el888888888888888888888888888888888888888888888888888888888888
B#G888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888
SWO Analysis88888888888888888888888888888888888888888888888888888888888888888888888888
EFE &atriF888888888888888888888888888888888888888888888888888888888888888888888888888888888
#ompetitive Profile &atriF888888888888888888888888888888888888888888888888888888888
CORE COMPETENCIE0 ANA./0I0 & -01
CORPORATE CU.TURE
0TRATEGIE0 UNDERTA-EN AT T8E
#orporate Level8888888888888888888888888888888888888888888888888888888888888888888888888
B(siness Unit Level88888888888888888888888888888888888888888888888888888888888888888888
F(nctional Level8888888888888888888888888888888888888888888888888888888888888888888888888
MANAGEMENT 0TRATEGIE0
!R&88888888888888888888888888888888888888888888888888888888888888888888888888888888888888888
A5ministration8888888888888888888888888888888888888888888888888888888888888888888888888
"ecision &a*in% G#entraliCe5 Hs "ecentraliCe5I888888888888888888888888
&otivational 3 Incentive ec$niA(es8888888888888888888888888888888888888888
MAR-ET ANA./0I0
Se%ments 3 ar%et &ar*et888888888888888888888888888888888888888888888888888888
= PEs888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888
&ar*et S$are8888888888888888888888888888888888888888888888888888888888888888888888888888
USPEs88888888888888888888888888888888888888888888888888888888888888888888888888888888888888888
#ompetitive Analysis88888888888888888888888888888888888888888888888888888888888888888
&ain &ar*etin% Strate%ies an5 &ar*etin% Positionin%88888888888888
1INANCIA. ANA./0I0
Statements88888888888888888888888888888888888888888888888888888888888888888888888888888888
PA4ISAN INERNAIONAL AIRLINE Pa%e D
#osts J EFpen5it(res88888888888888888888888888888888888888888888888888888888888888888
Profits8888888888888888888888888888888888888888888888888888888888888888888888888888888888888888
Reven(es88888888888888888888888888888888888888888888888888888888888888888888888888888888888
Ratios8888888888888888888888888888888888888888888888888888888888888888888888888888888888888888
OT8ER 0TRATEGIE0
R3"8888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888
Proc(rement888888888888888888888888888888888888888888888888888888888888888888888888888888
CONTRO. PROCEDURE0
&ar*etin% control88888888888888888888888888888888888888888888888888888888888888888888
Pro5(ction control8888888888888888888888888888888888888888888888888888888888888888888
;(ality control8888888888888888888888888888888888888888888888888888888888888888888888888
!R control88888888888888888888888888888888888888888888888888888888888888888888888888888888
Finance control8888888888888888888888888888888888888888888888888888888888888888888888888
PRO2.EM 0ECTION
&ain pro6lems accor5in% to t$e mana%ement88888888888888888888888888
&ain pro6lems accor5in% to yo(r analysis88888888888888888888888888888888
S(6 pro6lems8888888888888888888888888888888888888888888888888888888888888888888888888888
0TRATEGIC A.TERNATIVE0
Sol(tions to solve t$e pro6lems888888888888888888888888888888888888888888888888
Eval(ation of t$e sol(tions88888888888888888888888888888888888888888888888888888888
IMP.EMENTATION P.AN888888888888888888888888888888888888888888888
CONC.U0ION
RECOMMENDATION0
RE1ERENCE0
PA4ISAN INERNAIONAL AIRLINE Pa%e ,<
2RIE1 8I0TOR/
PA4ISAN INERNAIONAL AIRLINE Pa%e ,,
Birth of a Nation, Birth of an Airline
Air transport $as pro6a6ly never 6een more important to t$e 5evelopment
of a ne) nation t$an in t$e case of Pa*istan8 In K(ne ,D/17 )$en Pa*istan
)as still in t$e offin%7 &r8 &o$amma5 Ali Kinna$7 t$e Fo(n5er of t$e
(pcomin% nation7 instr(cte5 &r8 &8A8 Ispa$ani7 a lea5in% in5(strialist7 to
set (p a national airline7 on a priority 6asis8 Wit$ $is sin%(lar vision an5
foresi%$t7 &r8 Kinna$ realiCe5 t$at )it$ t$e formation of t$e t)o )in%s of
Pa*istan7 separate5 6y ,,<< miles7 a s)ift an5 efficient mo5e of transport
)as imperative8
Orient Airways Takes to the Skies
On -.r5 Octo6er ,D/17 a ne) airline )as
6orn8 Initially re%istere5 as a pilot pro@ect
in #alc(tta7 Orient Air)ays Lt58 $a5 at its
$elm &r8 &8A8 Ispa$ani as #$airman an5
Air Hice &ars$al O848 #arter as General
&ana%er8 $e ne) carrierLs 6ase
remaine5 in #alc(tta an5 an operatin%
license )as o6taine5 in &ay ,D/=8
Fo(r
"o(%las "#2.s )ere p(rc$ase5 from
empo of eFas in Fe6r(ary ,D/= an5
PA4ISAN INERNAIONAL AIRLINE Pa%e ,-
operations commence5 on /t$ K(ne
,D/=8 $e 5esi%nate5 ro(te for Orient
Air)ays )as #alc(tta2A*ya62Ran%oon7
)$ic$ also $appene5 to 6e t$e first post2
)ar international sector to 6e flo)n 6y
an airline re%istere5 in In5ia8 Wit$in t)o
mont$s of Orient Air)aysL operational
6e%innin%s7 Pa*istan )as 6orn8 $e 6irt$
of a ne) nation %enerate5 one of t$e
lar%est transfers of pop(lation in t$e
$istory of man*in58
Orient Air)ays7 alon% )it$ t$e $elp of BOA# aircraft )$ic$ $a5 6een
c$artere5 6y t$e Government of Pa*istan7 starte5 relief operations an5
transportation of people 6et)een "el$i an5 4arac$i7 t$e t)o capitals8
S(6seA(ently7 Orient Air)ays transferre5 its 6ase to Pa*istan an5
esta6lis$e5 a vital lin* 6et)een 4arac$i an5 "acca7 t$e t)o capitals of t$e
t)o )in%s of Pa*istan8 Wit$ a s*eleton fleet of @(st t)o "#2.s7 t$ree cre)
mem6ers7 an5 t)elve mec$anics7 Orient Air)ays la(nc$e5 its sc$e5(le5
operations in a fairy2tale manner8
$e initial
ro(tes )ere 4arac$i2La$ore2Pes$a)ar7
4arac$i2;(etta2La$ore an5 4arac$i2"el$i
#alc(tta2"acca8 By t$e en5 of ,D/D7
Orient Air)ays $a5 acA(ire5 ,< "#2.s
an5 . #onvair -/<s )$ic$ )ere operate5
on t$ese ro(tes8 In ,D0<7 it $a5 6ecome
increasin%ly apparent t$at a55itional
capacity )o(l5 $ave to 6e in5(cte5 to
cater to t$e %ro)in% nee5s of t$e s(62
continent8
A Ne) National Fla% #arrier for Pa*istan
PA4ISAN INERNAIONAL AIRLINE Pa%e ,.
Orient
Air)ays )as a privately o)ne5 company7
)it$ limite5 capital an5 reso(rces8 It
co(l5 not 6e eFpecte5 to %ro) an5
eFpan5 in5epen5ently8 It )as t$en t$at
t$e Government of Pa*istan 5eci5e5 to
form a state2o)ne5 airline an5 invite5
Orient Air)ays to mer%e )it$ it8 $e
o(tcome of t$e mer%er )as t$e 6irt$ of a
ne) airline7 t$ro(%$ PIA# Or5inance
,D00 on Kan(ary ,<7 ,D008
In a55ition to transport activities7 Orient
Air)ays $a5 esta6lis$e5 t$e n(cle(s of
over$a(l an5 maintenance facilities an5
acA(ire5 traine5 pilots7 en%ineers an5
tec$nicians7 meas(res )$ic$ prove5 to
6e a %reat asset for PIA 5(rin% its
teet$in% p$ase8
PIAEs First International Service
$e year ,D00 also mar*e5 t$e ina(%(ration of t$e fle5%lin% airlineLs first
sc$e5(le5 international service 2 to t$e %litterin%7 %litCy capital city of
Lon5on7 via #airo an5 Rome8 Initially7 t$ere )as m(c$ criticism7 as t$e
p(6lic co(l5 not compre$en5 or @(stify t$e nee5 to operate an
international ro(te )$en7 in t$eir opinion7 ot$er pro@ects vital for a
5evelopin% co(ntry s$o(l5 $ave 6een %iven a $i%$er priority8 !o)ever7
PIALs foc(s )as7 an5 contin(es to 6e7 to serve t$e Pa*istani comm(nity at
lar%e8 $e provision of transportation to eFpatriates $as remaine5 one of
t$e foremost priorities of t$e national airline8 &oreover7 PIA earne5
s(6stantial forei%n eFc$an%e t$ro(%$ international services7 )$ic$ it
investe5 in t$e p(rc$ase of aircraft an5 spare parts7 as fleet eFpansion
)as a %rave necessity for t$e airline8
PA4ISAN INERNAIONAL AIRLINE Pa%e ,/
Ne)
Planes7 Ne) "irections7 Ne)
&ana%ement
In ,D017 or5ers )ere place5 for t)o
S(per #onstellations an5 five Hisco(nts
)$ic$ )ere to 6e 5elivere5 in ,D0D8 At
t$is @(nct(re7 PIA possesse5 a small fleet
)$ic$ comprise5 of #onvairs7 Hisco(nts7
S(per #onstellations an5 "#2.s8
W$ile &r8
&8A8 Ispa$ani )as t$e first #$airman of
t$e ne) 5ynamic airlineB it )as t$e first
&ana%in% "irector of PIA7 &r8 >afar2(l2
A$san7 )$o in $is / year ten(re7 %ot t$e
6all tr(ly rollin% an5 set t$e s$ape of
t$in%s to come8 $e PIA !ea5 Office
6(il5in% at 4arac$i Airport7 )$ic$ $o(ses
t$e entire ma@or 5epartments of t$e
airline7 )as t$e 6rain2c$il5 of &r8 >afar2
(l2 A$san8 In fact7 on $is 5epart(re from
t$e airline7 t$e employees presente5 $im
)it$ a silver replica of t$e 6(il5in% )it$
t$e caption7 ;T7e 8o,se /o, 2,ilt;8
In ,D0D7 t$e Government of Pa*istan
appointe5 Air #ommo5ore N(r 4$an as
t$e &ana%in% "irector of PIA8 Wit$ $is
visionary lea5ers$ip7 PIA Ltoo* offL an5
)it$in a s$ort span of 1 years7 %aine5
t$e stat(re an5 stat(s of one of t$e
)orl5Ls frontline carriers8 In aviation
PA4ISAN INERNAIONAL AIRLINE Pa%e ,0
circles7 t$is perio5 $as often 6een
referre5 to as t$e ;#ol4en 3ears o!
PIA;&
"evelopment7 eFpansion7 an5 %ro)t$ )ere *ey)or5s t$at t$e ne)
mana%ement )as committe5 to8 In &arc$ ,D1<7 PIA la(nc$e5 its first
Boein% =<= @et service on t$e Lon5on24arac$i2"acca7 ro(te )$ic$ later
prove5 to 6e very s(ccessf(l8 $is trail26laCin% accomplis$ment res(lte5 in
PIA 6ecomin% t$e first Asian Airline to operate a @et aircraft7 settin% tren5s
for t$e f(t(re8 In ,D1,7 t$e airline too* on t$e mammot$ tas* of initiatin%
a cross2Atlantic service from 4arac$i to Ne) 'or*8 By t$is time7 PIA $a5
place5 or5ers for more ne) aircraft7 )$ic$ incl(5e5 Fo**er F2-=s7 Boein%
=-<Bs an5 Si*ors*y $elicopters8 !elicopter services in East Pa*istan $a5
%aine5 moment(m 6y ,D1- an5 eFpan5e5 to incl(5e Syl$et7 #$itta%on%7
"acca7 #omilla an5 Is$(r5i8 PIALs $elicopter services carrie5 over =<7<<<
passen%ers 5(rin% t$e first year of operation8 At t$e time7 it )as re%ar5e5
as a stellar operation7 eA(al to any ot$er in t$e )orl58 Unfort(nately7 5(e
to t)o mis$aps7 t$e service )as 5iscontin(e5 in ,D118
Historic Firsts and Unbroken Records
In ,D1-7 fin5in% t$e (pper )in5s forecast favo(ra6le7 PIA set o(t to 6rea*
t$e recor5 for t$e fastest fli%$t 6et)een Lon5on an5 4arac$i8 Wit$
representatives of FAI GFe5eration Aerona(tiA(e InternationalI on 6oar5 to
monitor t$e official timin%s7 PIA complete5 t$e fli%$t in 1 $o(rs7 /.
min(tes7 0, secon5s7 a recor5 )$ic$ remains (n6ro*en to t$is 5ay8
In ,D1/7 PIA ac$ieve5 anot$er $istoric first7 re%ar5e5 as ma@or milestones
in t$e c$eA(ere5 $istory of t$e airline8 On -Dt$ April7 ,D1/7 )it$ a Boein%
=-<B7 PIA earne5 t$e 5istinction of 6ecomin% t$e first airline from a non2
comm(nist co(ntry to fly into t$e PeopleEs Rep(6lic of #$ina8 PIALs first
service to #$ina )as from 4arac$i to S$an%$ai via #anton8 In ,D1/2107 PIA
eFpan5e5 its fleet f(rt$er )it$ t$e a55ition of a fo(rt$ Boein% =-<B an5
t)o Fo**er F2-=s8 Serio(s 5evelopment $a5 6ecome a reality an5 t$e PIA
team contin(e5 to move a$ea5 )it$ am6itio(s plans an5 %oals for t$e
national fla% carrier8
A collective pri5e an5 @oyo(s 6(oyancy )as pervasive )it$in t$e PIA
family8 Ri5in% $i%$ on t$e crest of s(ccess7 PIA 6ecame a $o(se$ol5 name
in Pa*istan in t$e mi5 siFties8 $e )ar 6et)een In5ia an5 Pa*istan7 5(rin%
,D107 f(rt$er teste5 t$e national airline8 PIA playe5 a ma@or role in
provi5in% lo%istical s(pport to t$e Arme5 Forces 6y operatin% special
fli%$ts (sin% Boein%s7 S(per #onstellations7 an5 Hisco(nts8 $e Fo(n5er of
t$e Nation7 &r8 Kinna$ $a5 pre5icte5 t$at t$e Pa*istan Air force )o(l5 nee5
t$e s(pport of a civil airline in special circ(mstances7 an5 t$is came into
evi5ence 5(rin% t$e )ar8
In ,D117 a system of fee5er services lin*in% ei%$t ne) points in West
Pa*istan )as intro5(ce58 By t$is time7 t$e airlineLs Hisco(nts )ere provin%
ina5eA(ate o)in% to traffic %ro)t$7 an5 $a5 to 6e replace5 6y ri5ents8
PA4ISAN INERNAIONAL AIRLINE Pa%e ,1
$e airline contin(e5 (p t$e %ro)t$ c(rve7 receivin% t)o Fo**er F2-=s7 t)o
Boein% =<=s an5 one ri5ent in t$e follo)in% year8
Style, Glamour, and Charisma
Aro(n5 t$is time7 t$e airline sa) a c$an%e in t$e top slot8 Air vice &ars$al7
As%$ar 4$an too* over t$e reins of PIA for a ten(re of . years8 A n(m6er
of $i%$points are attri6(te5 to t$is perio58 $e most colo(rf(l7 if not t$e
most si%nificant7 occ(rrence for PIA )as t$e intro5(ction of a ne) air2
$ostessesL (niform 5esi%ne5 6y none ot$er t$an t$e reno)ne5 Frenc$
5esi%ner7 Pierre #ar5in8 a*in% t$e aviation )orl5 6y storm7 t$is move7
more t$an any ot$er sin%le factor7 imprinte5 PIALs name on t$e
international mar*et8 $e (niforms )ere an instant $it7 6ot$ at $ome an5
a6roa58
Safety Management System at PI
PIA is t$e first airline to %et certifie5 Ginitial certificationI on Safety
&ana%ement System GS&SI 6y #ivil Aviation A(t$ority #AA 2 Pa*istan8 #AA
Air Navi%ation Or5er GANO D,8<<.- iss(e5 in Septem6er -<<?I 6in5s all
airlines operatin% in Pa*istan to $ave S&S8 Well 6efore t$e iss(ance of t$is
ANO7 PIA initiate5 S&S a)areness an5 implementation in K(ly -<<?8 PIA
a)ar5e5 initial certification on S&S in -=t$ Fe6r(ary -<<D 6y #AA8
$e P(rs(it of EFcellence $ro(%$ ec$nolo%y an5 ;(ality #ontrol
Not content )it$ a n(m6er of $istoric firsts (n5er its 6elt7 PIA ma5e
$istory yet a%ain7 6y installin% Pa*istanLs first comp(ter7 an IB&,/<,7 in
,D1=8 PIALs first En%ine Over$a(l S$op7 locate5 near t$e !ea5 Office
6(il5in%7 )as also complete5 an5 commissione5 aro(n5 t$is time8 $e
Gro(n5 rainin% Sc$ool GGSI no) *no)n as t$e PIA rainin% #entre7 )as
first conceive5 an5 5evelope5 5(rin% ,D1,21-8 Interestin%ly7 trainin% )as
initially imparte5 in t$e 2s$ape5 6(il5in% )$ic$ $as no) 6ecome t$e PIA
"ispensary7 close to t$e !ea5 Office 6(il5in%8
Besi5es visi6le 5evelopment an5 %ro)t$ in traffic an5 reven(es in t$e
siFties7 PIA a55e5 a55itional 5estinations7 ne) eA(ipment7 an5 c(ttin%2
e5%e tec$nolo%y to s(pport its ever eFpan5in% operations8 A ne) Ket
!an%ar for Boein%s )it$ a s(pportin% airframe over$a(l s$op )as
complete5 an5 commissione5 in ,D1?8
In ,D=<7 PIA set (p its o)n Fli%$t 4itc$en in 4arac$i7 )$ic$ caters7 even
to5ay7 to t$e national airline as )ell as ot$er carriers8 Over t$e years7 )it$
t$e airlineLs eFpansion an5 increase5 capacity7 t$e nee5 for a secon5
Fli%$t 4itc$en 6ecame imperative8
Ushering In a !e" #ra of Gro"th and $e%elo&ment
PIA $eral5e5 t$e nineties 6y 5onnin% a 6ri%$t ne) corporate i5entity8 Ol52
timers may remem6er t$e fl(tter t$at t$e earlier %reen an5 %ol5 livery $a5
create5 )$en it )as first intro5(ce5 in ,D=/8 !o)ever7 in *eepin% )it$ t$e
c$an%in% times7 PIA intro5(ce5 a smart7 sporty D<Ls loo*8 $e familiar PIA
%reen )as reinforce5 )it$ moss %reen an5 pale 6l(e stripes )ere
incorporate5 into t$e ne) corporate i5entity8 $e stripes7 a (niversal
PA4ISAN INERNAIONAL AIRLINE Pa%e ,=
sym6ol of sport7 $i%$li%$te5 PIALs active participation an5 sponsors$ip of a
5iverse ran%e of national %ames8 PIALs players $ave al)ays 6een at t$e
forefront of Pa*istani #ric*et7 !oc*ey7 SA(as$7 Foot6all7 #$ess7 Bri5%e7
Polo an5 a6le2ennis teams8 $e nineties also sa) t$e eFpansion of PIALs
massive !a@@ an5 Umra$ operations to Pa*istanLs smaller cities7 in a55ition
to t$e ma@or cities of Islama6a57 Pes$a)ar7 La$ore7 ;(etta an5 4arac$i8
PIALs %ro)t$ contin(es (na6ate5 an5 t$e airline no) operates %lo6ally7
coverin% t$e entire 5omestic lan5scape an5 international 5estinations
sprea5 over / continents8
Impressive statistics for a comparatively yo(n% airline7 since its inception
in ,D007 PIA $as in5ee57 come a lon% )ay8
0ITUATIONA. ANA./0I0
'here the Com&any is coming from? Air transport $as pro6a6ly never
6een more important to t$e 5evelopment of a ne) nation t$an in t$e case
of Pa*istan8 In K(ne ,D/17 )$en Pa*istan )as still in t$e offin%7 &r8
&o$amma5 Ali Kinna$7 t$e Fo(n5er of t$e (pcomin% nation7 instr(cte5 &r8
&8A8 Ispa$ani7 a lea5in% in5(strialist7 to set (p a national airline7 on a
priority 6asis8 Wit$ $is sin%(lar vision an5 foresi%$t7 &r8 Kinna$ realiCe5
t$at )it$ t$e formation of t$e t)o )in%s of Pa*istan7 separate5 6y ,,<<
miles7 a s)ift an5 efficient mo5e of transport )as imperative8
'here is the com&any standing( PIALs %ro)t$ contin(es (na6ate5 an5
t$e airline no) operates %lo6ally7 coverin% t$e entire 5omestic lan5scape
an5 international 5estinations sprea5 over / continents8
Impressive statistics for a comparatively yo(n% airline7 since its inception
in ,D007 PIA $as in5ee57 come a lon% )ay8
'here is the com&any heading in future( PIA is $ea5in%
tremen5o(sly to)ar5s a 6ri%$t f(t(re in a positive manner8
PA4ISAN INERNAIONAL AIRLINE Pa%e ,?
i8 Or#ani<ational 8ierarc73
PA4ISAN INERNAIONAL AIRLINE Pa%e ,D
PA4ISAN INERNAIONAL AIRLINE Pa%e -<
PA4ISAN INERNAIONAL AIRLINE Pa%e -,
.OCATION O1 A O11ICE
!EA" OFFI#E M 4ARA#!I
PIA BUIL"ING
KINNA! INERNAIONAL AIRPOR
4ARA#!I 2 =-0<<
REGIONA. O11ICE = .A8ORE
PIA BUIL"ING
NEAR WAP"A !OUSE7 &ALL ROA"
PA4ISAN INERNAIONAL AIRLINE Pa%e --
LA!ORE M //<<<
PIA 2oo>in# O!!ice .ocation
#ity #ontact 5etails
4ARA#!I Si5co #entre7 Stretc$en Roa57
P$one D-<1=-, 2 ,0 lines
PA4ISAN INERNAIONAL AIRLINE Pa%e -.
FaF N 01?<<0<
#ar%o P$one 01?D1., 2 -< lines
4ARA#!I
PIA #ar%o Boo*in% Office7 S$afi #o(rt7 #l(6 Roa5
P$one 01?D1.,
FaF 01==,<1
#ar%o P$one -D</J-D<?J-,/<
4ARA#!I
;(ai5 e ACam International Airport
P$one D</.=-,JD</-<,,J,,,2---2=/-
ISLA&ABA"
PIA B(il5in%7 /D Bl(e Area7 Islama6a5
P$one D-<DD,,
FaF D-<DD11
#ar%o P$one 00D,<=, EFt8 .?0JD-<DD1D EFt8 -?0
LA!ORE
PIA B(il5in%7 4$alifa S$(@a(55in Roa57 La$ore
P$one D<.1DDD
FaF D-<-.-,
#ar%o P$one D-<-.-0
#ar%o FaF D-<-.<=
ABBOABA"
Opp8 Set$i &as@i57 &anse$ra Roa5
P$one <DD-2D.,<-0/JD.,<-01
FaF <DD-2D.,<-00
BA!AWALPUR
Noor &ansion7 Noor &e$al Roa5
P$one ??-.<.J??0D?D
FaF <1-,2??-.<0
BANNU
,. "efence OfficerLs #olony Bann( #antt8
P$one D-=<,-,JD-=<,--
#!IRAL
Polo Gro(n57 #$itral
P$one -?1.J-D1.J-01.
#ar%o P$one -?1.J-D1.J-01.
"ALBAN"IN
Lon5on Roa57 "al6an5in
P$one -,<0,D
#ar%o P$one -00,D
"ERA G!A>I 4!AN
,, 4$an &ar*et7 Bloc* No8 ,07 ;(ai5 e ACam Roa5
P$one 1-,/1J1/,=-
FaF 1-0/1
"ERA IS&AIL 4!AN
#irc(lar Roa5
P$one D-?<-/1JD-?<-/?
FaF D-?<-/=
#ar%o P$one D-?<-/D
FAISALABA"
-1 Ne) #ivil Lines7 $e &all8
P$one 1./,.,J1./,.-J1./,.. J ,,,2=?12=?1
FaF 1==?=0
#ar%o P$one 1-1<<,J1-1-,/J1-1-,0
GWA"AR
Airport Roa57 G)a5ar
P$one ----
#ar%o P$one ----
GILGI
PIA Boo*in% Office7 GSR PlaCa7 Gil%it
P$one ..D<
#ar%o P$one ..D<
!'"ERABA"
PIA Boo*in% Office7 #ivic #enter7 $an5i Sara*8
P$one D-<<011
#ar%o P$one D-<<<?<
Email $55((p*Opiac8com8p*
KA#OBABA"
Station Roa57 Kaco6a6a5
P$one .1?1J0,-DD1
#ar%o P$one .1?1
KIWANI &ain BaCar
P$one -?D
PA4ISAN INERNAIONAL AIRLINE Pa%e -/
#ar%o P$one -?D
4!ARIAN
PIA Boo*in% Office7 G88 Roa57 4$arian
P$one -D</J-D<?J-,/<
#ar%o P$one -D</J-D<?J-,/<
4!U>"AR
4$(r* Roa57 4$(C5ar
P$one /,---0J/,-0?<
#ar%o P$one /,---0J/,-0?<
&IANWALI
PIA Boo*in% Office7 &ian)ali
P$one .-??=
#ar%o P$one .-??=
&ULAN
10 A65ali Roa58
P$one D-<<D.=JD-<<D.?J,,,2=?12=?1
FaF D-<<<=,
#ar%o P$one D-<<<1DJD-<<1-1
&U>AFFARABA"
PIA Boo*in% office7 #$attar7 &(Caffara6a5
P$one 1-DD
#ar%o P$one 1-DD
NAWABS!A!
4(tc$ery Roa57 Na)a6s$a$
P$one /1,.J/1,/
FaF <-/,2/1,0
#ar%o P$one /1,/
OR&ARA
ACiC &ar*et7 Ormara
P$one 0,<J0/=
#ar%o P$one 0,<J0/=
PARA#!INAR
(ll Roa57 Parac$inar
P$one -/1,J-<DD
#ar%o P$one -/1,J-<DD
PASNI
Aslam S$a$ &ar*et7 Pasni
P$one -,<0<,
#ar%o P$one -,<0<,
PES!AWAR
PIA B(il5in%7 Ar6a6 Roa57 Pes$a)ar7 #antt
P$one -=,,=?J-=<-,/
#ar%o P$one -=,,=?J-=<-,/
;UEA
,= !ali Roa57 ;(etta7 #antt
P$one ?-<D<,J?-<?1,
FaF ?-<?=,
#ar%o P$one ?-<?1,J?-<//,
RA!I& 'AR 4!AN
IA6al #ompleF
P$one 0<.- J =0/.-
#ar%o P$one 0<.- J =,,.-
RAWALA4O
PIA Boo*in% Office7 Ra)al*ot
P$one .,01
RAWALPIN"I
07 $e &all7 Ra)alpin5i8
P$one D-=--,,J,,,2=?12=?1
FaF D-=--//
#ar%o P$one 001=<,,
SUI
S8G88#8 Lt58 S(i
P$one <=,2?.<D-
#ar%o P$one <=,2?.<D-
SAI"U S!ARIF
FaiCa6a5 Roa5
P$one <D.12=,,<D- J=,,,.=
FaF =,,,/?
#ar%o P$one ?,-<0.
#ar%o FaF =,<10,
SIAL4O Kinna$ Islamia #olle%e Roa57 Sial*ot
P$one 0?.=<,20
#ar%o P$one 0?.=<D
PA4ISAN INERNAIONAL AIRLINE Pa%e -0
S!I4ARPUR A55ress Station Roa57 S$i*arp(r
P$one 0,-?<<
#ar%o P$one 0,-?<D2,,/
S4AR"U 4$(s$o Ba$%7 S*ar5(
P$one -D/,J..-0
#ar%o P$one --D,J..-0
SU44UR A55ress 4$an PlaCa7 &inara Roa57 S(**(r
P$one <=, 2 D.,</D/
FaF <=, 2 D.,</D,
#ar%o P$one --,-0
Email s*C((p*Opiac8com8p*
URBA #ommisionery Roa57 (r6at
P$one /,..00
#ar%o P$one /,-.--
>!OB ,,2A &ar*et Roa57 >$o6
P$one -?=0J..11
#ar%o P$one -?=0
5inna7 International Air"ort -arac7i
PA4ISAN INERNAIONAL AIRLINE Pa%e -1
Allaa I?bal International Air"ort .a7ore
PA4ISAN INERNAIONAL AIRLINE Pa%e -=
PIA Doestic Net@or>
PA4ISAN INERNAIONAL AIRLINE Pa%e -?
PIA International Net@or>
PA4ISAN INERNAIONAL AIRLINE Pa%e -D
Total N,ber o! E"lo3ees
$ere are total )A(5'' employees )or*in% in Pa*istan International
Airport GPIAI )$ic$ incl(5es Boar5 of "irectors7 #orporate secretary7 !ea5
of Internal A(5it7 EFec(tive &ana%ement an5 A(5itors (n5er 5ifferent
5epartments8
Nat,re o! 2,siness
$e nat(re of Pa*istan international airlines is transport 3 services t$o(%$
air7 an5 6y roa5
T3"e o! O@ners7i"
$ey are semi2 %overnment or%aniCation8 $at is ?<P %overnment 3 -< 3
private8
2oar4 o! Directors
,8 #!8 A!&A" &U4!AR M &inister of "efence 3 #$airman PIA
-8 S'E" NASEER A!&A"
PA4ISAN INERNAIONAL AIRLINE Pa%e .<
.8 &ALI4 NA>IR A!&A"
/8 &R8 KAHE" A4!ER
08 L8 GEN GRE"8I S'E" A4ER ALI M Fe5eral secretary "efence
18 #AP8 &O!A&&A" AIKA> !AROON M &ana%in% "irector PIA
=8 PROF8 &IAN IKA> UL !ASAN
?8 &R8 &UBAS!IR IFI4!AR
D8 &R8 !USAIN LAWAI
,<8 &R8 S!AU4A ALI RANA
,,8 &R8 SAL&AN SA""I; UE M Fe5eral Secretary Finance
Cor"orate 0ecretar3
,8 &R8 &U!A&&A" S!UAIB
8ea4 o! Internal A,4it
,8 &R8 S FA>AL A!&A"
Exec,tive Mana#eent
,8 #AP8 &O!A&&A" AIKA> !AROON M &ana%in% "irector PIA
-8 &R8 ARIF &AKEE" M #!EIF FINAN#IAL OFFI#ER
.8 &R8 I&RAN A!&A" 4!AN M "irector M proc(rement7 lo%istics an5
Foo5 services
/8 &R8 & !ANIF PA!AN M "irector M !R7 A5ministration 3 coor5ination
08 &R8 S!A!NAWA> RE!&AN M "irector M #orporate Plannin%
18 &R8 SALA!U"IN M "irector M &ar*etin%
=8 AH& &U!A&&A" 4A&AL ALA& SI""I;UE M "irector M Precision
En%ineerin% #ompleF
?8 #AP8 S!UKA NA;HI M "irector Fli%$t Operations
D8 &R8 S!A!I" SARWAR M "irector M Information ec$nolo%y
,<8 &R8 &U!A&&A" >I'A" A S'E" M "irector M Finance
,,8 &R8 "ILAWAR FAREE" BEG M "irector M rainin% 3 "evelopment
,-8 &R8 &A;SOO" A!&A" M "irector M En%ineerin% 3 &aintenance
,.8 &R8 S 4A&RAN !ASAN M "irector
A,4itors
,8 &ESSRS8 ANKU&7 &R8 ASIF7 &R8 S!A!I"7 &R8 RA!&AN
-8 &ESSRS FOR"7 R!O"ES7 SI"A7 !'"ER 3 #O8
PA4ISAN INERNAIONAL AIRLINE Pa%e .,
PA4ISAN INERNAIONAL AIRLINE Pa%e .-
Vision
9PIAEs vision is to 6e a Worl5 class airline7 meetin%
c(stomer eFpectations t$ro(%$ eFcellent services7 on2
time performance7 innovative pro5(cts an5 a6sol(te
safety:
Mission
Employee team )ill contri6(te to)ar5s ma*in% PIA a %lo6al
airline of c$oice t$ro(%$:
Offerin% A(ality c(stomer service 3 innovative pro5(ct8
Usin% state2of2t$e2Art ec$nolo%ies
Ens(rin% cost effective meas(res in proc(rement an5
operations
"evelopin% safety c(lt(re
PA4ISAN INERNAIONAL AIRLINE Pa%e ..
PA4ISAN INERNAIONAL AIRLINE Pa%e ./
GOA.0 & O25ECTIVE0
Accor5in% to PIA# Act ,D017 follo)in% are t$e main o6@ectives of PIA
#orporation8
o provi5e an5 f(rt$er 5evelop safe7 efficient7 a5eA(ate7 economical
an5 properly coor5inate5 5omestic as )ell as international air
transport system8
o operate any air transport service or any fli%$t 6y aircraft for a
commercial or ot$er p(rpose7 an5 to carry all forms of aerial )or*8
o acA(ire7 o)n7 r(n7 mana%e or participate in t$e r(nnin%
mana%ement of7 any $otel or 6(siness connecte5 t$ere)it$8
o provi5e for t$e instr(ction an5 trainin% in matters connecte5 )it$
aircraft or fli%$t 6y aircraft of persons employe5 or 5esiro(s if 6ein%
employe5 eit$er 6y t$e corporation or 6y ot$er person8
PA4ISAN INERNAIONAL AIRLINE Pa%e .0
o promote any or%aniCation o(tsi5e Pa*istan for t$e p(rpose of
en%a%in% in any activity of a *in5 )$ic$ t$e corporation $as po)er
to carry o(t8
o acA(ire7 $ol5 or 5ispose of any property7 )$et$er mova6le or
immova6le7 or any transport (n5erta*in%8
o repair7 over$a(l7 reconstr(ct assem6le or recon5ition aircraft7
ve$icles or ot$er mac$ine parts7 accessories o)ne5 6y t$e
corporation or 6y any ot$er person8
PA4ISAN INERNAIONAL AIRLINE Pa%e .1
0TEPE. ANA./0I0
Social Factors
Et$nic traffic is present on PIA
Lan%(a%e 6arriers are not present
Act of patriotism
!i%$ traffic on social event or e$)ars li*e Ei57 Basant7
In5epen5ence "ay etc
)echnological Factors
S(pply c$ain is not present
Lo%istics iss(es are t$ere
Sales teams are not (p5ate5
No coor5ination of 5epartments
PA4ISAN INERNAIONAL AIRLINE Pa%e .=
#conomics Factors
Increase f(el prices increase tic*ets prices
Inflations creates pro6lems
&ar*et sl(mp
"ecreasin% in mi55le class
Political Factors
Political insta6ility
Political press(re
Flyin% at lo) cost
Bilateral promises
Non profit ro(tes
#n%ironmental Factors
F(el emission
Green f(el
*egal Factors
LiA(or canEt 6e serve5
Firin% of employee Gco(rt iss(esI
PORTERB0 1IVE 1ORCE0 MODE.
PA4ISAN INERNAIONAL AIRLINE Pa%e .?
T8REAT O1 A NE6 ENTRANTC
8i#7 .o@
Barriers to entry
#apital reA(irements are

$ere is $i%$ t$reat of potential entrants to t$e in t$is 6(siness8
Even t$ere are no 6arriers to entry 6(t )$en )e loo* to)ar5s
t$e capital reA(irement t$ese is very $i%$ an5 its ris*y 6(siness
INTEN0IT/ O1 COMPETITIVE
RIVA.R/C
8i#7 .o@
N(m6er of competitors is

In5(stry %ro)t$ rate is

FiFe5 cost are

Stora%e costs are

PA4ISAN INERNAIONAL AIRLINE Pa%e .D
Pro5(ct 5ifferentiation is

S)itc$in% costs are

$ere is $i%$ t$reat of eFistin% rivalry8 $is is 6eca(se eFit
6arriers are $i%$7 fiFe5 an5 stora%e costs are $i%$ an5 pro5(ct
5ifferentiation is lo)8 Anot$er factor t$at stren%t$ens t$e t$reat
of eFistin% rivalry is t$at t$e corporate sta*es are $i%$
T8REAT0 O1 0U20TITUTE
PRODUCT0C
8i#7 .o@
Profita6ility of in5(stry pro5(cin%
s(6stit(te is

Rate of improvement in price2
performance relations$ip of
s(6stit(te pro5(ct is

$e
$ere is a $(%e t$reat of s(6stit(te pro5(cts8 $ere are many
ot$er companies s(c$ as air Ara6ia 6y S$ar@a7 some 6y Sa(5ia
li*e &ar$a6a7 $ai air )ays lo) cost carriers an5 many more
2ARGAINING PO6ER O1
0UPP.IERC
8i#7 lo@
Importance of c(stomer to t$e
s(pplier is

"ifferentiation of t$e s(pplier
pro5(ct an5 services is

#oncentration relative to 6(yer
in5(stry is

S)itc$in% cost of t$e 6(yer are
$e 6ar%ainin% po)er of s(pplier is only $i%$ )$en )e tal*
a6o(t t$e prices of f(el )$ic$ is $i%$ly important for an air
PA4ISAN INERNAIONAL AIRLINE Pa%e /<
in5(stry ot$er)ise t$e remainin% in%re5ients are not effectin%
t$is in5(stry as $i%$ly as to some ot$er 6(siness
2ARGAINING PO6ER O1 2U/ER 8i#7 lo@
Pro5(ct 5ifferentiation of s(pplier is
S)itc$in% cost are
Pro5(ct 5ifferentiation are
$e po)er of 6(yer is very $i%$8 $ey 6(y tic*ets form t$ere
near availa6le point an5 t$ey also 6(y tic*et of air line )$ic$
cost less to t$em&
2CG MATRI: 1OR PIA
PA4ISAN INERNAIONAL AIRLINE Pa%e /,
$is is a strate%y tool t$at %(i5es reso(rce allocation 5ecision
on t$e 6asis of mar*et s$are an5 %ro)t$ rate of SBUs8 $e
B8#8G matriF 5ivi5es or%aniCations into fo(r 5ifferent
cate%ories8 $ese are as follo)s:
PA4ISAN INERNAIONAL AIRLINE Pa%e /-
#as$ #o)s: W$ic$ $ave $i%$ mar*et s$are 6(t lo) opport(nity
for %ro)t$
Stars: W$ic$ $ave $i%$ mar*et s$are an5 $i%$ opport(nity for
%ro)t$
;(estion mar*s: W$ic$ $ave $i%$ opport(nity for %ro)t$ an5
lo) mar*et s$are
"o%s: W$ic$ $ave lo) mar*et s$are an5 lo) opport(nity for
%ro)t$8
Base5 on t$ese ass(mptions7 Pa*istan air lines $ave 6een
classifie5 as a cash co"s 6eca(se it 5oes $ave a $i%$ mar*et
s$are )$ic$ is 1= percent in t$e air line in5(stry 5omestically
an5 .< percent internationally an5 lo) 6(siness %ro)t$
opport(nity8
06OT ANA./0I0
Strengths
Point to point freA(ency GLa$ore to Lon5onI
!i%$ A(ality services
People oriente5 Or%aniCation GNo lan%(a%e pro6lemI
Govt8 sponsore5 or%aniCation
Perfect timin%s
A6roa5 Pa*istanis prefer PIA GpatriotismI
!ealt$y internal environment
Weaknesses
Less international traffic
LiA(or is not serve5 so less traffic
Wea* re)ar5s 3 appraisal
Less effort in t$e fiel5 of mar*etin%
!i%$ Fares
Over staffin% Gover 6(r5ene5 employeesI
Lac* of professionalism
Lo) salary of en%ineers
Opportunities
raffic et$nic
Better recr(itment policy
Bi% mar*ets availa6le t$at are (n serve5
Spee5 eF7 co(rier service 5omestically can 6e internationally
PA4ISAN INERNAIONAL AIRLINE Pa%e /.
Lo) cost carriers
Better trainin% pro%rams
!ave an opport(nity to %ro) an5 eFpan5 t$ro(%$o(t t$e co(ntry
Threats
All 5omestic an5 international carrier
Fl(ct(atin% petrol prices
Government c$an%in%
Barriers to investment for a6roa5 5(e to co(ntry con5itions
ime ta*en 6y em6assy to accept visa
errorism
B(sy fli%$t sc$e5(le
Open s*y policy
!i%$ amo(nt of loan
E1E Matrix
-e3 External 1actors
6ei#7t
s
Ratin#
6ei#7te
4 0core
O""ort,nities
,8 raffic et$nic <8,. / <80-
-8 Bi% mar*ets availa6le t$at are (n serve5 <8<D . <8-=
.8 Spee5 eF7 co(rier service 5omestically can 6e internationally <8<0 - <8,<
/8 Lo) cost carriers <8</ - <8<?
08 !ave an opport(nity to %ro) an5 eFpan5 t$ro(%$o(t t$e
co(ntry
<8<D / <8.1
T7reats
18 All 5omestic an5 international carrier <8<? / <8.-
=8 Fl(ct(atin% petrol prices <8<. . <8<D
?8 Government c$an%in% <8<0 - <8,<
D8 Barriers to investment for a6roa5 5(e to co(ntry con5itions <8<= - <8,/
,<8ime ta*en 6y em6assy to accept visa <8<? - <8,1
,,8Restricte5 vise system <8<= - <8,/
,-8Hisa re@ection cases <8,< . <8.<
,.8Economic sl(mp <8,- . <8.1
Total )&'' %&A'
Co"etitive Pro!ile Matrix
PA4ISAN INERNAIONAL AIRLINE Pa%e //
PIA Aero Asia 07a7een
Critical 0,ccess 1actors
6ei#7t
s
Ratin# 0core Ratin# 0core Ratin# 0core
Service ;(ality <8,. . <8.D , <8,. - <8-1
&ar*et S$are <8,0 . <8/0 , <8,0 , <8,0
A5vertisement <8<= - <8,/ , <8<= , <8<=
#(stomer EFpectation <8-< - <8/< - <8/< , <8-<
Safety <8,0 . <8/0 . <8/0 - <8.<
Relia6ility <8,< . <8.< - <8-< , <8,<
Social Responsi6ility <8<D . <8-= - <8,? - <8,?
Patriotism <8,< / <8/< . <8.< . <8.<
Total )&'' %&A' )&AA )&5*
0PACE MATRI:
Strate%ic Position 3 Action Eval(ation GSPA#EI &atriF is anot$er mana%ement
tool (se5 to $elp analyCe a company8 It can also (se5 to 5etermine )$at sort of
strate%y t$e company s$o(l5 (n5erta*e8 $e SPA#E &atriF is 6ro*en 5o)n into
fo(r A(a5rants as 6ein% a%%ressive7 conservative7 5efensive7 an5 competitive8
A55itionally7 t$e SPA#E &atriF analysis f(nctions (pon t)o internal strate%ic
5imensions )$ic$ are financial stren%t$ GFSI an5 competitive a5vanta%e G#AI8
Besi5es7 t$e SPA#E &atriF met$o5olo%y also st(5ies t)o 6(sinessE eFternal
strate%ic 5imensions s(c$ as environmental sta6ility GESI an5 in5(stry stren%t$
GISI8 $e #A Gval(es from 2, to 21I an5 IS Gval(es from +, to +1I are representin%
6y t$e Q2aFis of t$e #artesian %rap$ )$ereas t$e FS Gval(es from +, to +1I an5
ES Gval(es from 2, to 21I are representin% 6y '2aFis8 After 5ra)in% t$ese SPA#E
matriF %rap$7 t$e overall strate%ic positionin% of a company can 6e 5etermine58
0PACE MATRI: 1OR PIA

Internal strate#ic "osition
External strate#ic "osition
/Daxis



Total 3Daxis scoreC
PA4ISAN INERNAIONAL AIRLINE Pa%e /0
+.8-< 2,81< R E)&*'
1inancial 0tren#t7 $10+ (score: + !est, +" worst#$
+,: Ret(rn on Investment
+,: Levera%es
+.: LiA(i5ity
+-: Wor*in% #apital
+,: #as$ Flo)
Avera%e: +,81<
Environental 0tabilit3 (score: %" !est, % worst#
20: Barriers to Entry
2-: Inflation rates
2.: ec$nolo%y #$an%es
2-: #ompetitive Press(re
2/: "eman5 Haria6ility
Avera%e: 2.8-<
:Daxis
Total xDaxis score
2-8/< + .8=0 R +%&''
Co"etitive A4vanta#e $CA+ (score: %" !est, % worst#
2-: &ar*et s$are
2-: Service ;(ality
2-: #(stomer Loyalty 3 rep(tation
20: &ana%ement EFperience
2,: "irect Fli%$ts

Avera%e: 2-8/<
In4,str3 0tren#t7 $I0+ (score: + !est, +" worst#
+0: Gro)t$ Potential +-: Financial Sta6ility
+0: Ease of Entry into &ar*ets +.: ec$nolo%ies 4no)2$o)
Avera%e: +.8=0
PA4ISAN INERNAIONAL AIRLINE Pa%e /1
PIAB0 0PACE MATRI: GRAP8
Accor5in% to t$e %rap$ a6ove7 )e notice5 t$at PIA falls into t$e a%%ressive
A(a5rant of t$e SPA#E &atriF8 It is locate5 at t$e coor5inates of -8<< for F2
component an5 a y Mcomponent of ,81<8 It s$o)s t$at PIA $as a stron%
competitive position in t$e mar*et )it$ rapi5 %ro)t$8 It is also in5icates t$at PIA
s$o(l5 a5opt an a%%ressive strate%y8 It nee5s to (se its internal stren%t$s to
5evelop a mar*et penetration an5 mar*et 5evelopment strate%y8 Ot$er possi6le
strate%ies incl(5e pro5(ct 5evelopment7 inte%ration )it$ ot$er Airlines an5 also
concentric 5iversification8
0PACE MATRI: CONC.U0ION0
PIAEs $i%$ rep(tation $elps in attractin% c(stomersE loyalty
#ompete in an (nsta6le environment
PIA s$o(l5 5evelop ne) mar*et to vario(s area of Pa*istan as )ell as
overseas
$ey s$o(l5 eFpan5 its services an5 pro5(cts for 6etter improvement
Eliminate inefficiencies an5 improves services A(ality8 It can 6e 5one 6y
5oin% mar*et researc$ to investi%ate (nfavora6le performance8 $en7
ma*e f(ll (se of t$e reso(rces to improve it8
See* Inte%ration Opport(nities s(c$ as mer%er in 5ifferent areas
!ire potential employee eit$er from competitors or from ot$er so(rces to
%et 6i%%er improvement
See* ne) an5 %oo5 mana%ement staffs to %et a 6etter company 5irection
PA4ISAN INERNAIONAL AIRLINE Pa%e /=

PA4ISAN INERNAIONAL AIRLINE Pa%e /?
CORE COMPETENCIE0 & -E/ 0UCCE00 1ACTOR0
CU0TOMER E:PECTATION
CONVENIENCE( CARE( A11ORDA2I.IT/
0ERVICE0
PersonaliCe57 #o(rteo(s7 Passionate
INNOVATION
Ne) I5eas7 Pro5(cts7 Hal(e A55e5 Services
CO8E0IVENE00
Respect for In5ivi5(als7 eam )or* 3 Effective #omm(nication
INTEGRIT/
B(siness Et$ics7 Acco(nta6ility 3 ransparency
RE.IA2I.IT/
Loyalty 3 #onsistence
PA4ISAN INERNAIONAL AIRLINE Pa%e /D
0A1ET/
Passen%ers7 Employees7 Environment
0OCIA. RE0PON0I2I.IT/
Welfare7 !ealt$ 3 E5(cation
PA4ISAN INERNAIONAL AIRLINE Pa%e 0<
CORPORATE CU.TURE
PIA is 5riven 6y t$e $i%$est stan5ar5s of corporate %overnance an5 social
responsi6ility8 As a p(6lic sector or%aniCation an5 a 6(siness lea5er7 PIA
6elieves in 6(il5in% stron% relations$ips )it$ c(stomers7 partners7
employees7 an5 t$e comm(nities in )$ic$ it operates8 $e or%aniCationLs
val(es are eFemplifie5 in a ran%e of corporate initiatives 5esi%ne5 to
impact positively on t$e lives of m(ltiple sta*e$ol5ers8 PIA practices active
corporate citiCens$ip t$ro(%$ social services7 s(pport for non2profit
or%aniCations7 me5ical services for employees7 t$e promotion of sports7
an5 e5(cational initiatives8
PIA $as instit(tionaliCe5 t$e practice of %oo5 %overnance 6y esta6lis$in% a
#orporate Social Responsi6ility #ommittee8 $e #ommittee provi5es a
platform to eval(ate7 (p5ate7 an5 recommen5 6est practices as PIA
contin(es on its mission to a5$ere to 6(siness et$ics an5 stamp o(t
corr(ption8 #orporate Social Responsi6ility G#SRI is )oven into t$e fa6ric
of 5aily operations at PIA8
O(r employees )$ole$earte5ly contri6(te to o(r commitment to 5evelop
t$e or%aniCation7 t$e comm(nities in )$ic$ )e f(nction7 an5 t$e co(ntry8
PIA is pro(5 of its $(man reso(rce as t$ey in many )ays initiate 3 actively
participates in )elfare missions8 PIA is %ifte5 )it$ teams of professionals
)$o p(rs(e eFcellence an5 5eliver confi5ence8 Wit$ a Lea5ers$ip t$at
(n5erstan5s t$e tr(e meanin% of Social Acco(nta6ility7 PIA $as 6een a6le
to realiCe vision of social acco(nta6ility8
PA4ISAN INERNAIONAL AIRLINE Pa%e 0,
PA4ISAN INERNAIONAL AIRLINE Pa%e 0-
0TRATEGIE0 UNDERTA-EN AT T8E
Cor"orate level strate#3
Accor5in% to t$e PIA mana%ement7 policies an5 strate%ies are ma5e 6y
corporate level people eit$er relate5 )it$ any 5epartment of PIA8 $e
&ana%in% "irector G&"I an5 #$ief Financial Officer G#FOI ma*e t$e
strate%ies on lon% term 6asis an5 ma*e plans a6o(t PIAEs f(t(re8 $ey
i5entify companyEs overall vision7 mission 3 o6@ectives an5 5evelop
syner%ies at t$e corporate level8 $ese strate%ies are ma5e at t$e !ea5
Office7 so no sin%le employee is a)are of7 )$at is 6ein% 5one or not8 $ey
*eep t$ese strate%ies confi5ential an5 secret8 $ey are centraliCe5 at
corporate level8
2,siness Unit .evel 0trate#3
At t$is level7 W$en PIA $ave to implement t$eir strate%ies t$en t$ey
involve B(siness level people an5 t$ey 6elon% to t$e relate5 5epartment
)$ose strate%y is %oin% to 6e implemente5 an5 5isc(ss a6o(t 5evelopin%
3 s(stainin% t$e competitive a5vanta%e for t$e pro5(cts an5 services
t$ey $ave pro5(ce5 or offerin%8 All "irectors7 General &ana%ers are
involve5 in 5evelopin% t$e 6(siness level strate%ies8 At t$is level7 t$ey are
5ecentraliCe58
PA4ISAN INERNAIONAL AIRLINE Pa%e 0.
1,nctional .evel 0trate#3
At t$e f(nctional level7 all t$e mana%ers of 5ifferent 5epartments 5isc(ss
t$e iss(e relatin% to f(nctional 6(siness processes an5 val(e c$ain8 All t$e
5epartments li*e R3"7 &ar*etin%7 Finance7 !R7 Operations are involve5 so
t$at it is 5eci5e5 t$at $o) t$e strate%ies )ill 6e eFec(te5 efficiently 3
effectively8 F(nctional (nits of PIA are involve5 in $i%$er level strate%ies
6y provi5in% inp(t into t$e 6(siness (nit level an5 corporate level
strate%y7 s(c$ as provi5in% information on c(stomer fee56ac* or on
reso(rces an5 capa6ilities on )$ic$ t$e $i%$er level strate%ies can 6e
6ase58 Once t$e $i%$er level strate%y or strate%ic intent is 5evelope57 t$e
f(nctional (nits translate t$em into 5iscrete action plans t$at eac$
5epartment or 5ivision m(st accomplis$ for t$e strate%y to s(ccee58
MANAGEMENT 0TRATEGIE0
8RM
Proper recr(itment process
rainin% 3 5evelopment
SpecialiCe5 people are $ire5
!ea5 office in 4arac$i
Proper or%aniCation str(ct(re
ADMINI0TRATION
!ea5 office is in 4arac$i so every sin%le operation is 5one in $ea5 office
an5 offices in ot$er cities7 t$ey are performin% t$e 5(ties as assi%ne5 6y
t$e $ea5 office
DECI0ION MA-ING
All t$e 5ecisions are ta*en at $i%$er level8 #EO7 &ana%in% "irector ma*es
5ecision an5 all t$e operations are 5one at $ea5 office 4arac$i8 $e
employees7 mana%er in La$ore an5 Islama6a5 office 5onEt even $ave t$e
a(t$ority to ta*e any 5ecision8 If t$ere is some conflict or iss(e7 t$ey )ill
$ave to cons(lt at $ea5 office an5 )ait for t$eir 5ecision8 So t$ey $ave
#ENRAIL>E" 5ecision ma*in%7 )$ic$ is not a positive si%n in any
or%aniCation8
MOTIVATION AND INCENTIVE0
PA4ISAN INERNAIONAL AIRLINE Pa%e 0/
PIAEs only motivation is in t$e form of $an5some salary )it$ respect to
t$eir competitors an5 monetary 6on(ses an5 a yearly increment of salary
from ,<<P to -<<P of salary for eFec(tives8 B(t 5(e to crisis7 PIA is not
foc(sin% on motivation an5 incentives )$ic$ is affectin% t$e employees
an5 t$e passion for t$e or%aniCation8
PA4ISAN INERNAIONAL AIRLINE Pa%e 00
PA4ISAN INERNAIONAL AIRLINE Pa%e 01
PA4ISAN INERNAIONAL AIRLINE Pa%e 0=
MAR-ET 0EGMENTATION O1 PIA
)& Deo#ra"7ic 0e#entation o! PIAC
Income Se%mentation
Occ(pation Se%mentation
%& Geo#ra"7ic 0e#entation
In t$is se%mentation PIA foc(ses 6ot$ on se%ments 5omestic an5
international
F& 2e7avioral 0e#entation
Occasion Se%mentation
PA4ISAN INERNAIONAL AIRLINE Pa%e 0?
!a@@Es Occasion8
Ei5Es Occasion8
Ne) 'earsE Occasion8
Loyalty Stat(s
G& Ps3c7o#ra"7ic 0e#entation o! PIA
Social #lass
o(rists
Reli%io(s ravels
Pa*istani EFpatriates
$e eFistin% mar*et se%mentation strate%y of PIA is reasona6le eno(%$
6eca(se it covers all necessary parameters t$at are to 6e foc(se5 in 5oin%
mar*et se%mentation for Airline #ompany8
TARGETING 0TRATEG/ O1 PIA
PIABs Existin# Tar#et A,4ience
,8 From t$e $emogra&hic Segmentation7 PIA is tar%etin% t$e income
an5 occ(pation oriente5 people8 $e classification of 6ot$ cate%ories is
as follo)8
Incoe 0e#entation
From income se%mentation of PIA7 t$ose )$o falls (n5er t$e
cate%ory of (pper class an5 (pper mi55le class
Occ,"ation 0e#entation
PA4ISAN INERNAIONAL AIRLINE Pa%e 0D
From occ(pation Se%mentation t$at PIA is ta*in% in to acco(nt7 t$ere
are t)o main s(6 $ea5s of )or*in% class an5 6(siness class8 $e
)or*in% class incl(5es all t$ose )$o are )or*in% as an employee
insi5e an5 o(tsi5e t$e co(ntry8 In 6(siness class all t$ose people are
incl(5e5 )$o are $avin% 6(siness8
-8 From Geo#ra"7ic 0e#entation of PIA all t$e a(5ience from t$e
5omestic an5 international re%ions are incl(5e5 in 5omestic people
)it$in t$e co(ntry are incl(5e5 an5 people resi5in% o(tsi5e
Pa*istan8
.8 From t$e 2e7avioral 0e#entation PIASs tar%et a(5ience is
cate%ories as follo)8
Occasion 2ase4 Mar>et 0e#entation of PIA8
8ajjBs Occasion
W$en !a@@ operation in %oin% all t$ose people flyin% from 5ifferent
cities of Pa*istan to Sa(5i Ara6ia for t$e performance of !a@@8
Ei4Bs Occasion
W$en Ei5 occasions are near people )it$in t$e cities an5 o(tsi5e t$e
co(ntry move to t$eir $omes for $avin% Ei5 Occasion to%et$er )it$
family
Ne@ /earsB Occasion
No) people prefer to $ave Ne) 'ear )it$ t$eir family t$atEs )$y all
t$ose people comin% 6ac* to Pa*istan from 5ifferent co(ntries or
movin% o(tsi5e Pa*istan to 5ifferent co(ntries an5 also all t$ose
people movin% )it$in t$e co(ntry are tar%ete5 over $ere8
.o3alt3 0tat,s
PIA %ives 5ifferent 6enefits to t$e fliers8 B(t all t$ose )$o travel a lot
%et t$e 6enefit of freA(ent fliers )$ic$ carries fe) 5isco(nt rates on
t$e tic*ets8 o s(c$ a(5ience PIA not only %ives t$e 5isco(nt facility
6(t also t$e facility of pic* an5 5rop to t$em8
/8 From t$e Ps3c7o#ra"7ic 0e#entation of PIA7 t$e tar%et
a(5ience of PIA )ill 6e t$e follo)in%8
0ocial Class
In Social #lass PIA tar%ets t$e to(rists7 reli%io(s travelers an5
Pa*istani EFpatriates8
To,rists
PA4ISAN INERNAIONAL AIRLINE Pa%e 1<
All t$e to(rists from 5ifferent re%ions of t$e co(ntry or from 5ifferent
co(ntries come to Pa*istan for to(rism p(rpose or %o o(tsi5e t$e
co(ntry8 Beca(se PIA is $avin% $i%$est rate of lin*in% t$e remotes
areas of Pa*istan
Reli#io,s Travels
All t$e reli%io(s travelers for eFample people %oin% for !a@@ etc are
tar%ets over $ere8
Pa>istani Ex"atriates
As PIA is a national fla% carrier airline t$atEs )$y people resi5in%
o(tsi5e t$e co(ntry feel a (niA(e sort of feelin% to %et into t$e
National Airline8 PIA is not @(st an5 Airline 6(t also acts as t$e
am6assa5or of Pa*istan in t$e )$ole )orl58
MAR-ETING MI: $H PBs+
&ar*etin% &iF is t$e set of mar*etin% tools t$at t$e firm (ses to p(rs(e its
mar*etin% o6@ectives in t$e tar%et mar*et8 $ere are literally 5oCens of
mar*etin% miF tools8 &c#art$y pop(lariCe5 = factor classifications of t$ese
tools calle5 = PEs: Pro5(ct7 Price7 Place7 Promotion7 people7 process an5
p$ysical evi5ence8
So t$ese = PEs of PIA are 5isc(sse5 as follo)s:
PRODUCT
A pro5(ct is anyt$in% t$at 6e offere5 to a mar*et for alteration7
acA(isition7 (se7 or cons(mption t$at mi%$t satisfy a )ant or nee58 &ost
PA4ISAN INERNAIONAL AIRLINE Pa%e 1,
pro5(cts )e t$in* of are p$ysical pro5(cts7 6(t it also incl(5es services8
PIA# is also provi5in% services to t$e nation7 )$ic$ can 6e cate%oriCe5 as
follo)s:
Seat service Gfor passen%ersI an5
Space service Gfor car%oI
$e c$aracteristics of t$e services provi5e5 6y PIA# are 5epicte5 in t$e
follo)in% lines8
INTANGI2.IT/
Services provi5e5 6y PIA are intan%i6le8 Unli*e p$ysical pro5(ct7 t$ey
cannot 6e seen7 teste57 felt7 $ear5 or smelle5 6efore t$ey are 6o(%$t8
$erefore7 t$e 6(yer cannot see t$e res(lt 6efore t$e p(rc$ase8 o re5(ce
(ncertainly7 t$e 6(yers )ill loo* for si%ns an5 evi5ence of t$e service
A(ality8 $ey )ill 5ra) interface a6o(t t$e A(ality of t$e service from
place7 people7 eA(ipment7 comm(nication material7 sym6ols an5 price
t$at t$ey )ill see8
$erefore7 PIAEs tas* is to mana%e t$e evi5ence7 to tan%i6les t$e
intan%i6les8
IN0EPARA2I.T/
Services are typically pro5(ce5 an5 cons(me5 at t$e same time8 If t$e
service is ren5ere5 6y a person7 t$en t$e person is a part of service8 Since
t$e client is also present as t$e service is 6ein% pro5(ce58
VARIA2I.IT/
Services are $i%$ly varia6le7 as t$ey 5epen5 on )$o provi5es t$em an5
)$en an5 )$ere t$ey are provi5e58 Service firm can ta*e t)o steps
to)ar5s A(ality control8 $e first step is investin% in %oo5 personnel
selection an5 trainin%8 PIA spen5s s(6stantial s(ms to train t$eir
employees in provi5in% %oo5 service8 Secon5 step is monitorin% c(stomer
satisfaction system an5 PIA also 5o not properly monitor c(stomer
satisfaction8
PERI08 A2.IT/
Services cannot 6e store5 an5 t$ey $ave no self life8 W$en 5eman5
fl(ct(ates7 service firms $ave 5iffic(lt pro6lems7 li*e PIA $as to apply
m(c$ more eA(ipment 6eca(se of pea* perio5 5eman5 on a specific ro(te
t$an it )o(l57 if 5eman57 )as even t$ro(%$o(t t$e year8
PIA (se follo)in% strate%ies for pro5(cin% a 6etter matc$ 6et)een
5eman5 an5 s(pply8
On t$e 5eman5 si5e
PA4ISAN INERNAIONAL AIRLINE Pa%e 1-
2 "ifferential pricin% to s$ift some 5eman5 from pea* to off pea*
perio5s
2 Non pea* 5eman5 can 6e c(ltivate5
2 Reservation system is one )ay to mana%e t$e 5eman5 level7 an5
PIA employ it eFtensively
On t$e s(pply si5e
2 Pea* time efficiency ro(tines are intro5(ce58 Employees perform
only essential tas*s 5(rin% pea* perio5s
2 S$are5 services are 5evelope5 6y interline a%reements8
PRICE
A profit or%aniCation faces t$e tas* of settin% a price on t$eir pro5(ct J
service8 Price is t$e amo(nt of money t$at c(stomers $ave to pay for t$e
service8 !o) are prices setT PIA $as to 5eal )it$ pricin% aspect in t)o
types of sit(ation8
,8 Pricin% of passen%er tic*ets
-8 Pricin% of #ar%o Air)ays Bill
For t)o types of ro(tes7 5omestic ro(tes an5 international ro(tes7 5ifferent
pricin% policies are (se5 6y PIA8
DOME0TIC ROUTE0
Prices for 5omestic ro(tes are fiFe5 6y %overnment of Pa*istan for PIA8 $e
cost pl(s met$o5 is (se5 to set prices at 5omestic level8 $e PIAEs
mana%ement estimates t$e price 6y (sin% follo)in% siF steps proce5(re
an5 sent to t$e %overnment for final approval:
,8 Selectin% t$e price o6@ective
-8 "eterminin% "eman5
.8 Estimatin% costs
/8 AnalyCin% competitorEs prices 3 offers
08 Selectin% a pricin% met$o5
18 Selectin% t$e final price
INTERNATIONA. ROUTE0
$e prices for international ro(tes are set 6y International Air ravel
Association GIAAI8 $e IAA 5oes not allo) any 5isco(nt on any
international ro(tes7 tic*et s$o)s t$e f(ll price for t$e ro(te )$ile airlines
c$ar%e 5isco(nte5 fare 6y c(ttin% t$eir prescri6e5 s$are of profit8
!o)ever7 PIA esta6lis$es t$e pricin% strate%ies on 5ifferent international
ro(tes *eepin% in vie) t$e follo)in% points:
PA4ISAN INERNAIONAL AIRLINE Pa%e 1.
,8 "eman5 for seat7 %reater 5eman5 ten5s to no 5isco(nt
-8 #ompetitorEs price
.8 #ost of operation
/8 ype of Aircraft (se5
On t$e ot$er $an5 PIA $as t$ree cate%ories of t$eir pricin% as 6elo)7 t$ey
also vary 6y season to season an5 at pea* time8
!i%$er prices
S$o(l5er prices
Lo) prices
#OUNRIES !IG!ER PRI#ES
RS8
S!OUL"ER
PRI#ES RS8
LOW PRI#ES
RS8
U4 1=7/0< 0.7=0< /070<<
"UBAI 0=710< /D700< /-70<<
P.ACE
&ar*etin% c$annels can 6e vie)e5 as sets of in5epen5ent or%aniCations
involve5 in t$e process of ma*in% a pro5(ct or service availa6le to (se8 A
5istri6(tion system is a *ey reso(rce8 PIA $as partially o)ne5 5istri6(tion
system8
.EVE. O1 C8ANNE.
PIA (ses t)o levels of c$annels7 )$ic$ are 5escri6e5 as 6elo):
PA4ISAN INERNAIONAL AIRLINE Pa%e 1/
IERO .EVE. C8ANNE.0
It is also *no)n as 5irect mar*etin% c$annel8 !ere PIA sells t$e tic*ets
5irectly to final (sers7 t$ro(%$ its tic*et co(nters8 In La$ore7 PIA $as tic*et
an5 6oo*in% office Gsee pa%e ,=2,DI to sell 5irectly to t$e c(stomers8 All
s(c$ offices of PIA are comp(teriCe5 an5 5irectly lin*e5 )it$ t$e $ea5
office at 4arac$i8
ONE .EVE. C8ANNE.
!ere travel a%ents7 as interme5iaries7 are involve5 in sellin% of tic*ets to
t$e c(stomers8 &any travel a%ents are provi5e5 )it$ t$e a(to tic*etin%
an5 reservation system8 $ere are t)o types of a%ents )$ic$ are 5efine5
as follo)s:
IATA A#encies
$ere are .< IAA approve5 travel a%encies )$ic$ 5eals )it$ PIA8
$ese a%encies can also 6e stoc*e5 an5 sell t$e tic*ets of ot$er
airlines8 #ommission of t$ese a%ents is as follo)s:
2 International sector R DP
2 "omestic sector R 0P
DI0TRICT 0A.E0 AGENT0
$ese are t$e a%ents )$o eFcl(sively 5eal )it$ PIAEs tic*et an5
cannot 5eal in ot$er airlines8 Normally7 t$ese are locate57 )$ere PIA
5oes not $ave sales point8
!o)ever7 t$ere is one in La$ore8 $e commission provi5e5 to General
Sales A%ents is:
2 International sector R ,- P
2 "omestic Sector R 0 P
PROMOTION
PIA is not investin% m(c$ in t$is area8 $ey @(st (se 6roc$(res7
ne)spapers an5 some H commercial )$en pea* season is not t$ere8
A%ents play an important role in promotion as t$ey convince traveler to
travel t$ro(%$ PIA8 Some 6roc$(res are liste5 6elo):
PA4ISAN INERNAIONAL AIRLINE Pa%e 10
2ROC8URE0
UMRA8 MADE EA0IER
PIA offers more fli%$ts to Ke55a$ in &ay7 K(ne an5 K(ly for Umra$
$ese a55itional fli%$ts )ill not only provi5e more travel options to
Umra$ Pil%rims 6(t )ill also ena6le more people to perform t$e $oly
rit(al8
Pil%rims can no) en@oy comforta6le an5 l(F(rio(s @o(rney in Boein%2
===s
PA4ISAN INERNAIONAL AIRLINE Pa%e 11
PIA J2UDGET 1.IG8TJ D EN5O/ UP TO FKL
DI0COUNT ON REGU.AR 1ARE0
PIA intro5(ces B(5%et Fli%$t 6et)een 4arac$i7 La$ore7 an5 Islama6a58
Fly PIALs ne) AR
Up to ,<*% $an5 6a%%a%e allo)e5
No c$ec*e52in 6a%%a%e
#on5ition apply
PA4ISAN INERNAIONAL AIRLINE Pa%e 1=
PIA 1.E:I2.E 1ARE0 D P.AN A8EAD &
PA/ .E00
Boo* International or "omestic fli%$ts as early as possi6le 6eca(se
t$e earlier yo( 6(y7 t$e c$eaper yo( fly8
A variety of 5isco(nts in B(siness7 Economy Pl(s7 3 Economy #lasses8
$e 6enefit of even lo)er fares in t$e lean travel perio58
FleFi6le Fares are applica6le on sectors )$ere Reven(e &ana%ement
is implemente58
#on5itions apply

PA4ISAN INERNAIONAL AIRLINE Pa%e 1?
1./ 2U0INE00 C.A00 6IT8 A 1REE
TIC-ET
B(y t$ree tic*ets an5 %et one FREE
B(y one tic*et an5 pay ONL' 0<P for yo(r companion
$e offer is availa6le on International ro(tes only
$is offer is not availa6le on U47 USA 3 #ana5a sectors
$is facility is only vali5 for t$e sectors )$ere R& is not
implemente5
DI0COUNT TO 0TUDENT0 ON INTERNATIONA. AND DOME0TIC
0ECTOR0
PA4ISAN INERNAIONAL AIRLINE Pa%e 1D
-0P 5isco(nt offere5 to st(5ents on "omestic ro(tes8
,<P 5isco(nt on International ro(tes is vali5 only on t$e ro(tes )$ere
R& is not implemente5
Offer can 6e availe5 eFcl(sively from PIA Boo*in% Offices or t$e PIA
co(nters at t$e airport8
$e offer is availa6le only for Economy #lass passen%ers
PIA 0PEEDE: DE.IVER0 6IT8 0PEED( RE.IA2I.IT/( AND
A11ORDA2I.IT/
PA4ISAN INERNAIONAL AIRLINE Pa%e =<
PIA Spee5eF 5elivers 5oc(ments an5 parcels to yo(r 5oorstep7 )it$
a vast 5omestic net)or*7 c(ttin%2e5%e tec$nolo%y7 an5 t$e $i%$est
stan5ar5s of c(stomer service8
PIA Spee5eF offers a ran%e of fleFi6le 5elivery options to s(it yo(r 6(5%et
an5 yo(r nee5s8
0ae Da3 0"ee4
Overni#7t 0"ee4
0econ4 Da3 0"ee4
0easonal Pro4,cts $Ne@+
PA4ISAN INERNAIONAL AIRLINE Pa%e =,
C.IC- JNJ 1./ 6IT8 PIA 6E2 TIC-ETING
Sec(re online cre5it car5 transaction
#onvenient accessi6ility from $ome or office
PA4ISAN INERNAIONAL AIRLINE Pa%e =-
1REE PIC- & DROP 0ERVICE
PIA now offers the free pick and drop service from your door to airport.
his offer will !e offer only for "usiness class.
MAGAIINE
PA4ISAN INERNAIONAL AIRLINE Pa%e =.
PIA )ill %ive a5vertisement in
5ifferent ma%aCines once after t)o mont$ )it$ a co(pon of ,0P off in
t$e follo)in% ma%aCines8
imes &a%aCines
Spi5er
A(rora
,8 Newspaper Advertisement
PA4ISAN INERNAIONAL AIRLINE Pa%e =/
PIA )ill freA(ently %ive t$e a5vertisement in t$e most rea5a6le
ne)spapers7 mentione5 as 6elo):
K(n%
"a)n
B(siness recor5er
We $ave planne5 to enli%$ten o(r f(t(re plans to o(r c$eris$e5
c(stomers in t$e (pcomin% mont$8
PEOP.E
An essential in%re5ient to any service provision is t$e (se of appropriate
staff an5 people8
Essential if t$e or%aniCation )ants to o6tain a form of competitive
a5vanta%e8 #ons(mers ma*e @(5%ments an5 5eliver perceptions of t$e
service 6ase5 on t$e employees t$ey interact )it$8 Staff s$o(l5 $ave t$e
appropriate interpersonal s*ills7 aptitit(5e7 an5 service *no)le5%e to
provi5e t$e service t$at cons(mers are payin% for8 &any Britis$
or%aniCations aim to apply for t$e Investors in People accre5itation7 )$ic$
tells cons(mers t$at staff is ta*en care off 6y t$e company an5 t$ey are
traine5 to certain stan5ar5s8
$ere are total )A(5'' employees )or*in% in Pa*istan International
Airport GPIAI )$ic$ incl(5es Boar5 of "irectors7 #orporate secretary7 !ea5
of Internal A(5it7 EFec(tive &ana%ement an5 A(5itors (n5er 5ifferent
5epartments8
8
RAN- No O!
E"lo3ee
s
2OARD O1 DIRECTOR0 ))
CEO )
8EAD O1 AUDITOR )
PI.OT0 HA
CO PI.OT0 )AK
ENGINEER0 %GF
MANAGER0 )F
AUDITOR0 %
CORPORATE 0ECURIT/ )
OT8ER0 )H(K*)
PROCE00
PA4ISAN INERNAIONAL AIRLINE Pa%e =0
In PIA t$e process is time )$en t$e c(stomers 6(y t$e tic*ets an5 t$e
time of t$eir lan5in% to t$eir 5estination8 ic*etin% offices are availa6le for
c(stomers at all t$ere near 5estination8 In Pa*istan PIA $ave airports in
5ifferent cities8 ItEs (p to t$e services receiver from )$ere t$ey )ant to fly8
P8/0ICA. EVIDENCE
It is t$e material part of a service8 Strictly spea*in% t$ere are no p$ysical
attri6(tes to a service7 so a cons(mer ten5s to rely on material c(es8
$ere are many eFamples of p$ysical evi5ence7 incl(5in% some of t$e
follo)in%:
Pac*a%in%8
InternetJ)e6 pa%es8
Paper)or* Gs(c$ as invoices7 tic*ets an5 5ispatc$ notesI8
Broc$(res8
F(rnis$in%s8
Si%na%e Gs(c$ as t$ose on aircraft an5 ve$iclesI8
Uniforms8
B(siness car5s8
$e 6(il5in% itself Gs(c$ as presti%io(s offices or scenic
$ea5A(artersI8
&ail6oFes an5 many ot$ers 8 8 8 8 8 8
$e eFistence of aircraftEs7 tic*et offices7 environment7 air 6(ses7 air ports
are t$e evi5ences for c(stomers of PIA
Mar>et 07are
$e mar*et s$are of PIA as 5omestically an5 internationally is as
PIA
Ot7e
r
Doestic 1=P ..P
PA4ISAN INERNAIONAL AIRLINE Pa%e =1
Internationa
l
.<P =<P
Uni?,e 0ellin# Pre"osition $U0PBs+
POIN O POIN FR;UEN#'
$ey offer 5irect fli%$ts li*e La$ore to Lon5on etc8
PA4ISAN INERNAIONAL AIRLINE Pa%e ==
PA4ISAN INERNAIONAL AIRLINE Pa%e =?
2alance 07eet
PA4ISAN INERNAIONAL AIRLINE Pa%e =D
2alance 07eet
PA4ISAN INERNAIONAL AIRLINE Pa%e ?<
Pro!it an4 loss acco,nt
PA4ISAN INERNAIONAL AIRLINE Pa%e ?,
0tateent o! Cas7 1lo@
PA4ISAN INERNAIONAL AIRLINE Pa%e ?-
PA4ISAN INERNAIONAL AIRLINE Pa%e ?.
0tateent o! E?,it3
PA4ISAN INERNAIONAL AIRLINE Pa%e ?/
PA4ISAN INERNAIONAL AIRLINE Pa%e ?0
CO0T0 9 E:PENDITURE0
CO0T O1 0ERVICE0 Deceber F) Deceber F)
-<<?
R(pees in S<<<
-<<=
R(pees in S<<<
Salaries7 Wa%es 3
Allo)ances
=7D.?7-/. 17D-,70D<
Welfare 3 Social sec(rity
cost
?.70., 1?7=-.
Retirement 6enefits ?0.7/01 .=07-<?
#ompensate5 a6sences ,/?7-,? D=7?<<
Le%al 3 professional
c$ar%es
17?0< =7?=D
Stores 3 spares
cons(me5
,70/=7,.? -7,??71,D
&aintenance 3 over$a(l .7?-D7D/. .7-1=7-//
Fli%$t eA(ipment rental ,7<.-7,.? .7,-/7?0=
Lan5in% 3 $an5lin% D7,-.7=-- =71D<7=,-
Passen%er services -7?..7.DD -7?/?70,=
#re) layover -7,D1710< -7<</7?1D
Provision for slo)
movin% parts
-?17/11 ../70,D
Staff trainin% ?D7?00 ?<7=/.
PA4ISAN INERNAIONAL AIRLINE Pa%e ?1
Utilities 07,=< /7D<D
#omm(nication 117D.< 107<,1
Ins(rance ,7,,-7==0 ,7<.?7,/.
Rent7 rate 3 taFes .1-7,./ .,?7D-=
Printin% 3 stationary D170D= ,.-7.1,
"epreciation =7?<D7-.D 07.D071,/
AmortiCation -7/1, -70.-
Ot$ers -?.7<<0 -=-700/
.D7=<=7D-< .17-/,7..1
DI0TRI2UTION CO0T0 Deceber F) Deceber F)
-<<?
R(pees in S<<<
-<<=
R(pees in S<<<
Salaries7 Wa%es 3 Allo)ances ,7/?-7D?= ,7//<7.D,
Welfare 3 Social sec(rity cost ,==7.=1 ,==7?.,
Retirement 6enefits /.=7.=1 ,D-7/D-
#ompensate5 a6sences /070<< .<7<--
"istri6(tion 3 a5vertisin% eFpenses -7,<,7=1, ,70D07,,-
Le%al 3 provisional c$ar%es -/7/D? ,/7D<0
Repairs 3 &aintenance ?=7</1 =.7011
Ins(rance ,-7D0? ?7=?-
Printin% 3 stationary .17<.= ..70/.
#omm(nication .?/7.-0 .=.7..-
Staff trainin% /070-, .07D0D
PA4ISAN INERNAIONAL AIRLINE Pa%e ?=
Rent7 rate 3 taFes .-D7=11 -=17,D1
Utilities .071D/ .,7D/-
"epreciation =-7//< 1D7,,,
AmortiCation ,7=<1 ,71</
Ot$ers ,,/70<0 D.7??1
07.?D71.- /7//?71=/
ADMINI0TRATIVE E:PEN0E0 Deceber F) Deceber F)
-<<?
R(pees in S<<<
-<<=
R(pees in S<<<
Salaries7 Wa%es 3 Allo)ances ,7==/7=,/ ,71..7D=1
Welfare 3 Social sec(rity cost ?=-7,,- 1DD7?,D
Retirement 6enefits 00,7,1- .=D7.=,
#ompensate5 a6sences 0<7-?- ..7,=?
Le%al 3 provisional c$ar%es --.701- -?D710?
Repairs 3 &aintenance -?D7<11 -/-7,00
Ins(rance ,/7D1= -.7-./
Printin% 3 stationary 1-7,=0 ==7-0<
Staff trainin% 1,7/<? //7,/D
Rent7 rate 3 taFes .=,7<<0 .=,710<
Utilities 0,<7D<1 /-D7<<1
PA4ISAN INERNAIONAL AIRLINE Pa%e ??
A(5itorsE rem(neration ,<7?-? ,<71.,
#omm(nication 0.?7.1/ 0--7D1.
"epreciation ,..7/., ,0-7/=<
AmortiCation ,D7?</ .<7/0D
"onations -7?DD .7-??
Ot$ers ..,70.. .,.7//.
07?,?7-,? 07-017=<<
REVENUE0
REVENUE D NET Deceber F) Deceber F)
-<<?
R(pees in S<<<
-<<=
R(pees in S<<<
Passen%ers =D7?,=70D- 1-7<<-7.,0
#ar%o 07/0?71?? /7?/D7=.0
EFcess 6a%%a%e ?=070.< ?10710=
#$arter ,?.7?<1 ,1.7?<1
En%ineerin% services D.170=? =,?7=..
!an5lin% 3 relate5 services 1?17=00 =,-71?1
&ail -1.7-,0 .<07-10
Room7 Foo5 3 Bevera%es sales D7-<07.10 =70/17,=D
Ot$ers ,7=//7,0= ,7.D<7,<=
DD7,=,71?1 =?700/7/?.
PA4ISAN INERNAIONAL AIRLINE Pa%e ?D
COMP.ETE 1INANCIA. ANA./0I0
As a c(m(lative res(lt of o(r en5eavors7 PIAEs traffic performance in t$e
last A(arter of -<<? $as 6een A(ite promisin%8 $is7 to%et$er )it$ t$e
5rop in oil prices an5 recent relative sta6ility of Pa*istani R(pee7 $as $a5 a
sal(tary effect for t$e /
t$
A(arter8 $e airline $as move5 closer to t$e
6rea*even point in t$e /
t$
A(arter of t$e c(rrent calen5ar year an5 t$ey
are poise5 to e*e o(t a mo5est profit in t$e comin% year8
PA4ISAN INERNAIONAL AIRLINE Pa%e D<
As yo( can see in t$e a6ove ta6le7 t$e loss in -<<? )as mainly ca(se5 6y
t)o eFtraneo(s factors 6ot$ of )$ic$ )ere o(tsi5e PIAEs internal control8
Firstly7 t$e Pa* R(pee lost its val(e a%ainst US 5ollar7 contri6(tin% to a net
eFc$an%e loss of P4R -/8, 6illion c$iefly 6eca(se of t$e acco(ntin%
reA(irement of $avin% to 6oo* t$e eFc$an%e 5ifference on t$e entire
amo(nt of o(tstan5in% US 5ollar loans8
PA4ISAN INERNAIONAL AIRLINE Pa%e D,
Secon5ly7 t$e cr(5e oil prices s*yroc*ete5 in -<<?7 reac$in% t$e $i%$est
ever level of US U ,/= J 6arrel in K(ly 3 contri6(tin% an increase of P4R
,080 6illion in t$e f(el eFpense over last year8 In act(al fact7 t$e f(el
eFpense )o(l5 $ave increase5 6y P4R ,?8/ 6illion o)in% to increase in
prices alone $a5 it not 6een for savin%s realiCe5 t$ro(%$ f(el efficiencies
an5 capacityJro(te rationaliCation 5(rin% t$e co(rse of year8
It is evi5ent from t$e prece5in% points t$at 6ase5 on a constant USUJP4R
parity of -<<= an5 constant oil prices of -<<=7 PIAEs loss )o(l5 $ave 6een
less 6y aro(n5 P4R .D81 6illion8 #onsi5er t$at t$e avera%e price of cr(5e
oil )as on avera%e USU =.J6arrel in -<<= an5 USU D?J6arrel in -<<? )$ile
c(rrently it is $overin% aro(n5 US U 0<J6arrel7 t$ere is ample reason to
n(rt(re realistic $opes of c$an%in% t$e color of PIAEs 6ottom line in -<<D8
It is note)ort$y t$at t$e -<<? net loss fi%(re also incl(5es P4R -8< 6illion
on acco(nt of eFceptional J nonrec(rrin% costs J provisions8
PA4ISAN INERNAIONAL AIRLINE Pa%e D-
Ratios
LiA(i5ity
EPS
(rnover ratios
ROI
.i?,i4it3 RatioC
#(rrent ratio
Aci5 test ratio
Wor*in% capital
#as$ ratio
Pa>istan International Airline
.i?,i4it3
ratio
Cal& %''H Cal& %''A
C,rrent
ratio
,.7-0,7..,
0-7</D70/-
<8-0
,07<.D7-?-
=,7=<=7D<0
<8-,
M,ic>
ratio
,.7-0,7..,2.7-0,7D/<
0-7</D70/-
<8,D
,07<.D7-?-2
.7=-17D/<
=,7=<=7D<0
<8,1
PA4ISAN INERNAIONAL AIRLINE Pa%e D.
6or>in#
ca"ital
,.7-0,7..,20-7</D70/- 2.?7=D?7-,,
,07<.D7-?-2
=,7=<=7D<0
201711?71-.
Cas7
ratio
,7D=07/0DJ0-7</D70/- <8<.? =?D7000J=,7=<=7D<0 <8<,,
PIA is in loss so )e are not a6le to calc(late t$e ratios8 In )$ic$ )e nee5
net profit an5 sales of company8
OT8ER 0TRATEGIE0
Proc,reent
Is t$e acA(isition of %oo5s or services at t$e 6est possi6le total cost of
o)ners$ip7 in t$e ri%$t A(ality an5 A(antity7 at t$e ri%$t time7 in t$e ri%$t
place an5 from t$e ri%$t so(rce for t$e 5irect 6enefit or (se of
corporations7 in5ivi5(als7 or even %overnments7 %enerally via a contract8
#ompleF proc(rement co(l5 involve fin5in% lon% term partners M or even
Lco25estinyL s(ppliers t$at mi%$t f(n5amentally commit one or%aniCation
to anot$er8
Pa*istan International Airline proc(rement lists t$e vario(s ten5ers7 or
nee5s7 for t$e 5ivisions of Pa*istan Airlines an5 s(6si5iaries of t$e
Pa*istan Airlines Gro(p
Coercial 0,""lies
PIA p(rc$ase in2fli%$t amenities7 in2fli%$t eA(ipment7 in2fli%$t salesJmail or5er pro5(cts7 6evera%es7 )ines an5 spirits7 (niforms an5 office s(pplies an5 eA(ipment8 We )elcome #ompanies t$at man(fact(re A(ality pro5(cts8
IT Pro4,cts & 0ervices
Information tec$nolo%y plays an important part in o(r airline systems7 an5 as s(c$ )e )elcome ven5ors )$o are a6le to provi5e A(ality I pro5(cts an5 services to participate in o(r ten5ers 8
En#ineerin# 0,""lies
PA4ISAN INERNAIONAL AIRLINE Pa%e D/
$e En%ineerin% S(pplies "epartment of PIA is t$e P(rc$asin% A(t$ority for proc(rement of aircraft parts7 non2aircraft parts Ge8%8 sim(lator sparesI an5 services to s(pport o(r aircraft maintenance an5 operations8 We invite
companies t$at meet o(r pro5(ctJservice specifications to participate in o(r ten5ers8
R&D
Accor5in% to t$e &ana%ement of PIA7 $ey 5onEt $ave R3" in t$eir
process soB )e are not a55in% t$e information re%ar5in% R3"8
PRO2.EM 0ECTION0
MAIN PRO2.EM0 ACCORDING TO MANAGEMENT
PIA is a lar%e p(6lic or%aniCation li*e ot$er or%aniCation PIA is also facin%
some serio(s pro6lems8 Some of t$em are as follo)e5:
PO.ITICA. IN1ERENCE
EFec(tives are t$e people )$o can improve or fail any 6(siness8 $ey
s$o(l5 *no) t$eir 6asic @o6s a(t$orities an5 responsi6ilities8 In PIA7 ma@or
pro6lem is t$at t$ere is $i%$ political inference in t$e appointment an5
selection area8 &ana%in% 5irector is appointe5 from o(tsi5e t$e
or%aniCation8 No)a5ays7 c$airman of PIA is a P&A political person canEt
$ave as m(c$ *no)le5%e of a commercial or%aniCation as prompte57
talente5 persons8 $ese eFec(tives t$en select t$eir favo(rite person for
ne) vacancies )eat$er t$ey $ave tec$nical *no)le5%e a6o(t @o6 or not
so7 t$is effects t$e overall efficiency an5 6(siness of or%aniCation8
UNION IN1ERENCE
PIA employees $ave t$eir (nions8 $ey (se t$eir po)er mostly for lo)
level appointments so t$e (pper an5 lo)er appointments affect t$e rest of
proportion8
2UREAUCRATIC 0TRUTURE
#$aracter of t$e or%aniCations is more li*e on elite %ovt8 Set (p an5 less
li*e an efficient for)ar5 loo*in% or%aniCation8
PA4ISAN INERNAIONAL AIRLINE Pa%e D0
GOVERNEMENT 8URD.E0
As PIA is (n5er ?<P of %overnment7 so t$ey are facin% %ovt $(r5les li*e:
Operations on non economic rates
P(rc$aser of ins(rance policies from Ins(rance #orporation
PIA f(nctionin% (n5er ministry of 5efence instea5 of ministry of
comm(nication or aviation
&ost of %ovt8 "epartments 5elay payments8
Govt8 "epartment )or*in% at airport irritates t$e c(stomers8
Employees sometime mis(se t$e PIA transport
MAIN PRO2.EM0 ACCORDING TO OUR ANA./0I0
Lac* of coor5ination
Lac* of eFpertise
Poor &ana%ement
#entraliCe5 c(lt(re
O(t 5ate5 tec$nolo%y
Wea* !R 5epartment
Lac* of #$ec* 3 Balance
No 5ele%ation of a(t$ority
Poor Strate%ic 5ecisions
Government interference
Favo(ritism
Non profita6le ro(tes
PA4ISAN INERNAIONAL AIRLINE Pa%e D1
Wea* &ar*etin% strate%y
Ol5 A%e5 Fleets
Ref(n5 process is not satisfactory
!i%$est employee ratio per airplane
#omplaints of employees are not properly facilitate5
0U2DPRO2.EM0
Sometimes7 a%ency sale a%ents 5onEt realiCe airport taFes )$ic$
ma*e complication in realiCation of reven(e
At some areas7 @o6s are not clearly 5efine5 )$ic$ effect efficiency
an5 )or*in% relation of employees
Rate of motivational campai%ns for employees very lo)
For ref(n57 c(stomers $ave to come to t$e office )$ic$ create
pro6lem for t$em
Over 6oo*in% an5 mis$an5lin% also creates tro(6le
&isappropriation of )or* is one of t$e main pro6lems li*e en%ineer
)or* as acco(ntant8 $is is 6eca(se of political inference
"elay in comp(ter (p %ra5ation also effect o(tp(t8
0TRATEGIC A.TERNATIVE0
0O.UTION0 TO 0O.VE T8E PRO2.EM0
PO.ITICA. IN1ERENCE
EFec(tives are t$e people )$o can improve or fail any 6(siness8 $ey
s$o(l5 *no) t$eir 6asic @o6s a(t$orities an5 responsi6ilities8 $e elements
of nepotism an5 @o66ery are present in PIA8 $ere is element of
favo(ritism from t$e %overnment si5e8 As t$e company is in financial crisis
PA4ISAN INERNAIONAL AIRLINE Pa%e D=
t$ere is a nee5 to privatiCe PIA alon% )it$ t$is7 financial crisis7 @o66ery an5
nepotism s$o(l5 6e re5(ce5 to favo(ra6le eFtent8
UNION IN1ERENCE
In PIA t$e salary pac*a%es are not 5esi%ne5 in a )ay t$at satisfy t$e
)$ole or%aniCation7 so as a res(lt of t$is7 t$e employees $as create5
la6o(r (nions7 mana%ement (nions etc in or5er t$at t$e corporate level
accept t$eir proposals8 $ey $ave less association )it$ t$eir )or* an5
more to)ar5s anti or%aniCation activities8
GOVERNEMENT 8URD.E0
$e %overnment $as create5 6(n5les of $(r5les for PIA8 W$ere ever a ne)
%overnment r(les7 t$ey promises to t$e people to provi5e @o6s7 in 5ifferent
sectors8 PIA 6ein% a %overnment or%aniCation7 %overnment provi5es @o6s
to t$ose can5i5ates )$o are act(ally not eli%i6le for t$at post8 So7
%overnment infl(ence on PIA s$o(l5 6e re5(ce5 in or5er to provi5e stron%
footin% in transportation in5(stry8
Ot7er t7an t7ese "robles t7at are at ana#erial level t7ere are
also an3 "robles @7ic7 re?,ire sol,tions&
.ac> o! coor4ination
$ere is lac* of coor5ination amon% employees8 $ey 5onEt *no) a
sin%le t$in% 5one at $ea5 Office an5 )it$in t$e same office8 $ey
@(st perform t$e tas*s assi%ne5 to t$em 6y t$e !ea5 office )it$o(t
*no)in% )$at is $appenin% in !O8 So t$ere is a nee5 to coor5ination
6et)een an5 !O an5 Employees in ot$er offices8
.ac> o! ex"ertise
In PIA7 t$ey 5onEt $ave eFpert employees in eac$ 5epartment7
)$et$er it is !R7 &ar*etin% or Finance8 $e 5epartments are r(nnin%
6y o(t5ate5 staff8 $e element of favo(titism is also present in t$is
cate%ory8 Beca(se if yo( $ire t$e staff @(st on t$e 6asis of
relations$ip rat$er t$an e5(cation it al)ays create pro6lem for an
or%aniCation7 so smoot$ r(nnin% of an or%aniCation eFperts are
al)ays reA(ire58
PA4ISAN INERNAIONAL AIRLINE Pa%e D?
Poor Mana#eent
$e mana%ement of PIA is very poor8 $e $irin% of t$e fres$
%ra5(ates is not present in PIA )$ic$ is t$e reA(irement of ne) a%e8
So7 t$e or%aniCation m(st $ave contacts )it$ 6(siness sc$ools7 so
t$at t$ey %et t$e (p5ates a6o(t comin% %ra5(ates an5 $ire t$em
accor5in% to t$eir reA(irement8
Centrali<e4 c,lt,re
$e c(lt(re of t$e or%aniCation is so m(c$ centraliCe58 Employees
are )or*in% aro(n5 a sin%le point8 $ey 5onEt $ave t$e a(t$ority to
ta*e any 5ecisions an5 t$atEs )$y t$ey are not intereste5 in t$e
pro%ress or s(ccess or prosperity of t$e or%aniCation8 So7 t$ere is a
nee5 to eFten5 t$eir net)or*s of 5ecision ma*in%8 So t$ey feel t$eir
self in act(al a part of PIA8
O,t 4ate4 tec7nolo#3
In PIA7 )e 5i5nEt fo(n5 any latest tec$nolo%y )$et$er )e tal* a6o(t
t$eir air6(ses t$ey are not (sin% any a5vance tec$nolo%y8 An5 )$en
)e tal* a6o(t 5epartments )e cannot fin5 &IS7 SAP7 A&S7 etc8 all
t$ese mentione5 system are necessary for a s(ccessf(l
or%aniCation8 So7 PIA s$o(l5 intro5(ce t$ese tec$nolo%ies for f(rt$er
improvement8
6ea> 8R 4e"artent
In t$is era7 stron% 3 efficient !R is consi5ere5 t$e 6ac*6one of any
or%aniCation8 PIA $as a very )ea* !R 5epartment8 $ey @(st $ave
limite5 !R officers )it$ limite5 a(t$orities8 $ey are 6(sy in t$eir
ro(tine )or*s an5 are not concerne5 more )it$ !R system8 So7
!ea5 office s$o(l5 ta*e notice an5 create stron% !R 5epartment
.ac> o! C7ec> & 2alance
As t$ere is not coor5ination in t$e 5epartments7 so t$ere is no
proper c$ec* 3 6alance on t$e employees7 staff7 an5 on overall
f(nctions of t$e PIA8 So t$ere m(st 6e a person or a(t$ority t$at $as
t$e ri%$t of c$ec* 3 6alance on t$e employees7 an5 )$o can listen
t$e pro6lems from t$e employeesE si5e 3 $avin% a(t$ority to solve
t$em8
PA4ISAN INERNAIONAL AIRLINE Pa%e DD
No 4ele#ation o! a,t7orit3
$ere is no 5ele%ation of a(t$ority in PIA8 It m(st 6e present for t$e
s(ccess of PIA8
Poor 0trate#ic 4ecisions
$e strate%ies are form(late5 at t$e !O an5 $ave centraliCe5
5ecision ma*in% process7 so )e 5i5nEt fo(n5 any proper strate%ic
5ecisions $appenin% in ot$er offices8 So7 t$ey m(st improve t$eir
strate%ic 5ecision 6y ma*in% 5ecentraliCe5 environment8
Governent inter!erence
As PIA is (n5er ?<P of %overnment7 so t$e %overnment interference
is t$ere )$ic$ affects t$e performance in PIA8 So7 t$e %overnment
interference m(st 6e re5(ce5 to ma*e PIA stron%er an5 6etter in
f(t(re8
1avoritis
$ere is a lot of favoritism in PIA8 &ost of t$e employees are $ire5
6y t$e or5ers of %overnment an5 )$ere %overnment is involve57
favoritism eFists8 So7 t$is is t$e 5(ty of a #EO to eFcl(5e t$e
favoritism an5 %ive c$ance to 5eservin% can5i5ates8
Non "ro!itable ro,tes
W$enever Government 5ele%ationEs visit to some ot$er co(ntry t$ey
ma*e some a%reements )it$ t$at co(ntry t$at to start t$eir services
in t$at co(ntry8 W$et$er it is favora6le for PIA or not s(c$
a%reements s$o(l5 not 6e ma5e )$ic$ are a%ainst t$e favor of PIA8
An5 5o not$in% 6(t increases t$e )orry of or%aniCation8
6ea> Mar>etin# strate#3
PA4ISAN INERNAIONAL AIRLINE Pa%e ,<<
PIA s$o(l5 a5opt %oo5 mar*etin% policies so t$at it )ill 6rin% $i%$er
profit an5 maFim(m (tiliCation of its availa6le reso(rces7 B(siness
sector s$o(l5 6e attracte5 to operate at f(ll potential8
Ol4 A#e4 1leets
PIA s$o(l5 (p%ra5e its fleet as itEs ca(sin% t$e airline $i%$er
operatin% cost an5 PIA is inc(rrin% loss 8PIA s$o(l5 p(rc$ase ne)
Airplane )it$ t)in en%ines t$ese )ill re5(ce t$e operatin% cost of
PIA8
Re!,n4 "rocess is not satis!actor3
Airline s$o(l5 foc(s on t$e c(stomerEs satisfaction7 ref(n5 process
s$o(l5 6e A(ic* so t$at c(stomer remains loyal to 6ran58
8i#7est e"lo3ee ratio "er air"lane
PIA s$o(l5 not in5(ct ne) employees till t$e time t$ey are nee5e5
on t$e 6asis of my personal o6servation at Ra)alpin5i station I $ave
seen t$at a tas* )$ic$ can 6e performe5 6y person PIA $a5 .
employees for t$at8
Co"laints o! e"lo3ees are not "ro"erl3 !acilitate4
PIA s$o(l5 facilitate employeesE complaints so t$at )$atever t$e
complain is7 it m(st 6e facilitate5 so t$at t$e pro6lems occ(rrin% to
employees 6e resolve5 soon8
IMP.EMENTATION P.AN %''K D %')5
PA4ISAN INERNAIONAL AIRLINE Pa%e ,<,
CONC.U0ION
PA4ISAN INERNAIONAL AIRLINE Pa%e ,<-
It $as 6een concl(5e5 t$at PIA is in 6i% crisis mainly 5(e to t$e varyin%
str(ct(res7 economic pro6lems an5 lea5ers$ip styles8 As mentione5 on
vario(s acco(nts7 PIA $as a centraliCe5 str(ct(re t$at $as ca(se5 $i%$er
conflicts an5 poor mana%ement of employees as 5ecisions are ma5e 6y
t$e top level mana%ement )it$o(t involvin% t$e employees8 In a55ition7
t$is lea5s to compleFities in employee tas*s as it ta*es more time to reac$
t$e information from top to 6ottom8 "(e to t$is 6(rea(cratic nat(re of PIA7
inefficiencies $ave crept in an5 morale of t$e employees $as pl(mmete5
over t$e years8
"ele%ation of tas*s is minimal at PIA8 $e c(rrent stat(s of employees is
less control an5 a(t$ority over 5ifferent tas*s apart from t$eir o)n
assi%ne5 tas*s7 so employees feel 5istant as far as ot$er iss(es an5
pro6lems of t$e 5epartments are concerne58
PIA $ave centraliCe5 $irin% processes8 !o)ever7 PIA emp$asiCes on
eFperience 6(t as it is (n5er ?<P %overnment t$ere is a lot of favo(ritism
)$ile $irin% any employee8 $erefore7 t$e or%aniCation $as (ns*ille5 an5
non2active employees )$o may lac* in eFperience as )ell as in t$e
operations8 $is $as 5ecrease5 pro5(ctivity of t$e employees an5
conseA(ently of t$e or%aniCation8
Relatively effective c$annels of eFpressin% 5issatisfaction are present at
PIA8 $e meetin%s an5 s(%%estion 6oFes at PIA are ineffectiveB employees
PA4ISAN INERNAIONAL AIRLINE Pa%e ,<.
feel rel(ctant to voice t$eir concerns in a meetin% ami5 ot$ers an5
complaints in t$e s(%%estion 6oFes ta*e time to reac$ 6osses an5
t$erefore7 action is postpone58
It $as 6een o6serve5 t$at Pa*istan International Airlines GPIAI fears
c$an%e8 $ey fear t$at t$e system )ill 6ecome (nsta6le7 t$eir sec(rity )ill
6e lost7 an5 t$ey )ill not (n5erstan5 t$e ne) process7 t$erefore7 )ill not
*no) $o) to respon5 to t$e ne) sit(ations8 PIA t(rne5 its attention on
employees )$en it face5 competition8 Ot$er)ise7 it )as concentratin%
more on eFpansion an5 profita6ility: an o(tcome oriente5 approac$8
At t$e en5 of t$e concl(sion7 )e $ave some recommen5ations for PIA
)$ic$ )e $ope )ill 6e implemente5 in t$e near f(t(re8 We $ave incl(5e5
A(estionnaire analysis )$ic$ s$o)s t$e overall performance an5
rep(tation of PIA8
!o doubt PI, is still a strong +rand name in Pakistan but due to
some economic and other %ariable issues PI is facing crisis
"hich is making PI do"n, +ut "e all ho&e that in the ne-t fe"
years, PI "ill sho" u& "ith a &ositi%e change
RECOMMENDATION0
PA4ISAN INERNAIONAL AIRLINE Pa%e ,</
PA-I0TAN INTERNATIONA. AIR.INE0
DECENTRA.IIATION
PIA s$o(l5 5ecentraliCe its str(ct(re t$at )o(l5 lea5 to t$e easy
mana%ement7 increase5 motivation7 easy access to information an5
resol(tion of t$e conflicts Gas t$ey )o(l5 6e resolve5 6y t$e
imme5iate mana%er time span )o(l5 t$en re5(ce5I8 Since
employees iss(es re%ar5in% t$eir 6e$avio(r )o(l5 lessen7 so it
)o(l5 (ltimately lea5 to more satisfie5 employees t$at )o(l5 res(lt
in en$ance5 pro5(ctivity of t$e or%aniCation8
EMP.O/EE EMPO6ERMENT
PIA s$o(l5 ma*e efforts to)ar5s empo)erin% t$e employees t$at is
%oin% to lea5 to more employee participation in t$e 5ecision ma*in%
process an5 also res(lt in more employee satisfaction an5 en$ance5
motivation8 Apart from t$is7 employees )o(l5 feel more
in5epen5ent to 5isc(ss t$e iss(es eFplicitly )it$o(t $esitation8 $is
)o(l5 also en$ance team )or* process at PIA as A(ality team an5
cross2f(nctional teams8 $e employees )ill )or* )it$ more
commitment an5 5e5ication an5 every employee )o(l5 )or* to
$isJ$er f(llest 5(e to increase5 motivation8 !o)ever7 )it$
empo)erment comes acco(nta6ility7 so it is s(%%este5 t$at )$ile
t$ey empo)er t$eir employees7 t$ere s$o(l5 also 6e a 9controlle5
c$ec*EE on t$em to ens(re t$e correct (sa%e of po)er 5ele%ate5 to
every employees )it$in t$eir circ(mscri6e5 limits8
PA4ISAN INERNAIONAL AIRLINE Pa%e ,<0
OVER8EAD CO0T0
PIA s$o(l5 also re5(ce its over$ea5 costs t$at is it s$o(l5 mana%e
its reso(rces: la6o(r more effectively7 so t$at )it$ less inp(t7 more
o(tp(t can 6e ac$ieve5 an5 t$e save5 reso(rces can 6e (tiliCe5 in
ot$er areas s(c$ as intro5(cin% more trainin% co(rses for t$e
employees so t$at t$e A(ality of t$e )or*force co(l5 6e increase58
!irin% t$e services of eFpertise can improve t$e efficiency of t$eir
services7 so 6y savin% t$e over$ea5 costs7 t$ey can (tiliCe t$at
money for t$e eFpertise services8 So 6y analyCin% t$e vario(s
se%ments of t$e or%aniCation an5 ma*in% t$e ri%$t corrections7 it
can s(6stantially improve t$e stan5ar5s of Or%aniCational 6e$avio(r8
T6OD6A/ COMMUNICATION
$e s(%%estions of t$e employees can prove to 6e very effective in
improvin% t$e operations as t$ey are t$e ones )$o mana%e t$em8
$erefore7 a top25o)n approac$ s$o(l5 6e replace5 )it$ t)o2)ay
comm(nications8 In t$is )ay7 t$e employees )o(l5 feel motivate5
an5 val(e5 as t$ey )o(l5 6e incl(5e5 in 5ecision2ma*in%8
PA4ISAN INERNAIONAL AIRLINE Pa%e ,<1
TOTA. MUA.IT/ MANAGEMENT
otal A(ality mana%ement s$o(l5 6e catere5 to )it$in t$e )or*
%ro(ps an5 implementation of vario(s s*ill en$ancement pro%rams
for A(ality an5 pro5(ctivity improvements s(c$ as SiF Si%ma s$o(l5
6e provi5e5 to its eFec(tive employees8
0TRATEGIC 2U0INE00 UNIT
PIA s$o(l5 ma*e its 5ifferent 5epartments into Strate%ic B(siness
Unit8 Every SBU s$o(l5 $ave a 5efine5 6(siness strate%y an5 a
mana%er )it$ sales an5 profit responsi6ility8 As PIA is a lar%e
or%aniCation7 so it m(st 6e convert into SBUs8
"ifferent factors s$o(l5 6e 5etermine5 for t$e s(ccess of SBUs
)$ic$ as follo)s:
$e 5e%ree of a(tonomy %iven to eac$ SBU mana%er
$e 5e%ree to )$ic$ an SBU s$ares f(nctional pro%rams an5
facilities )it$ ot$er SBULs
$e manner in )$ic$ t$e corporation eval(ates an5 re)ar5s t$e
performance of its SBU mana%ers
PA4ISAN INERNAIONAL AIRLINE Pa%e ,<=
MUE0TIONNAIRE
ANA./0I0
PA4ISAN INERNAIONAL AIRLINE Pa%e ,<?
Pakistan International Airline Questionnaire
P.EA0E 08ARE /OUR E:PERIENCE( VIE60 AND COMMENT0
6IT8 U0
)& 8o@ o!ten 4o 3o, ta>e airline travelN
Less t$an , mont$ - mont$ to . mont$
, mont$ to - mont$ . mont$ to / mont$
Or VVVVVVVVVVVVVVVVVVVVVVVVVV8

2. Which airline you always/usually select to travel (domestic)?
Pa*istan International Airline 9PIA:
Aero Asia
S$a$een Air International
Or Any Ot$er VVVVVVVVVVVVVVVVVVVVVVVVVVV8
F& Is t7ere an3 "artic,lar reason @73 3o, ,s,all3 c7oose t7at
AirlineN
Service Price Ot$er7 please specify 6elo)
G& 8o@ 4i4 t7e selecte4 airline "rice co"are to 3o,r ex"ectationsN

, GEFcellentI - GHery Goo5I . GGoo5I / GFairI 0
GPoorI 1 GHery PoorI
PA4ISAN INERNAIONAL AIRLINE Pa%e ,<D
5& How did the selected airline Value for Price Paid compare to your expectations?
, - . / 0
1
*& 8o@ @o,l4 3o, rate t7e overall val,e o! t7e selecte4 airlineN
, - . / 0
1
H& 67at are #oo4 as"ects o! selecte4 airline t7at attract 3o,N
A& 67at are soe as"ects o! selecte4 airline t7at can be i"rove4N
K& Do 3o, t7in> t7at all t7e above ?,alities exist in PIA( 4i4 3o,
a#reeN I! no( so "lease s"eci!3 it belo@&
)'& 8o@ 4o 3o, consi4er t7e "rice o! PIAN
Hery EFpensive EFpensive Avera%e Lo)
Hery lo)
PA4ISAN INERNAIONAL AIRLINE Pa%e ,,<
))& 67en I 7ave a "roble @it7 travel arran#eents( t7e airline
s7o@s sincere interest in solvin# itN
'es No Never $a5 eFperience
li*e t$is8
)%& 8o@ @ill 3o, co"are PIA @it7 4i!!erent airlines in t7e
!ollo@in# servicesN
GPlease fill t$e ta6le accor5in% to , for EFcellent7 - for Hery Goo57 . for
Goo57 / for Fair7 0 for Poor an5 1 for Hery Poor8I
Attrib,tes
PIA
Aero Asia
S$a$een Air
Destinations
P,nct,alit3
M,alit3 o! 1oo4
8os"italit39C,stoer 0ervice
Econoical
PA4ISAN INERNAIONAL AIRLINE Pa%e ,,,
Tec7nolo#ical A4vanceents
0ervices
Cor"orate Ia#e
0a!et3 o! l,##a#e
)F& 67at are soe i"ortant strate#ies t7at 3o, @o,l4 li>e to
recoen4N
COMMENT0
T7an> /o, 0o M,c7 !or 1illin# M,estionnaire
Name: VVVVVVVVVVVVVVVVVVVVVVVVVV A%e: VVVVVVVVVVV SeF: &ale
Female
Occ(pation: VVVVVVVVVVVVVVVVVVVVVVVVVV ;(alification: VVVVVVVVVVVVVVVVV
PA4ISAN INERNAIONAL AIRLINE Pa%e ,,-
PA4ISAN INERNAIONAL AIRLINE Pa%e ,,.
RE0EARC8 ANA./0I0
After con5(ctin% researc$ from 5ifferent &BA st(5ents of o(r University7 t$e
follo)in% res(lts $ave fo(n5 )$ic$ follo)s as 6ello):
Selection of Airline
Accor5in% to researc$7 1<P people (tiliCe t$e services of PIA7 .<P people (tiliCe
t$e services of Aero Asia an5 only ,<P people (tiliCe t$e services of s$a$een
International Airline8
Reason for Selection of Airline
Accor5in% to researc$7 0<P people selecte5 t$e service of airline ta*in% into
consi5eration t$e price7 .<P people selecte5 t$e service of airline ta*in% into
consi5eration t$e service7 an5 ,<P people selecte5 t$e service of airline ta*in%
into consi5eration on many %ro(n5s )$ic$ are relate5 to t$eir 5esire5
5estination8
Comparison of PIA with Different Airlines
After con5(ctin% t$e researc$ st(5ents $ave rate5 t$e 5ifferent airlines in t$e
follo)in% manner8
Attrib,tes
PIA
Aero Asia
07a7een Air
Destinations
1
0
/
P,nct,alit3
0
1
PA4ISAN INERNAIONAL AIRLINE Pa%e ,,/
/
M,alit3 o! 1oo4
0
1
0
8os"italit39C,stoer 0ervice
1
0
0
Econoical
0
0
0
Tec7nolo#ical A4vanceents
0
0
0
0ervices
0
0
/
Cor"orate Ia#e
1
.
/
Total Points
PA4ISAN INERNAIONAL AIRLINE Pa%e ,,0
GF
G'
F*
PA4ISAN INERNAIONAL AIRLINE Pa%e ,,1
PA4ISAN INERNAIONAL AIRLINE Pa%e ,,=
PA4ISAN INERNAIONAL AIRLINE Pa%e ,,?