Factors Effecting the Service and Financial Performance of Pia

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  • Topic: Pakistan International Airlines, Airline, Karachi
  • Pages : 25 (7744 words )
  • Download(s) : 174
  • Published : May 26, 2013
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Contents
Executive Summary4
Introduction5
PIA’s First International Service5
Ushering In a New Era of Growth and Development6
Financial Performance7
Research Methodology9
INTERVIEW9
Problem Description:12
Over Staffing:12
De-motivated employees:12
Nepotism and Political involvement during recruitment and selection:12
Lack of experience relating to aviation industry for the top management:13
Lapses in the management:13
Government’s and Civil Aviation authority’ policies:13
Rising fuel prices in the World:14
Aged fleet:14
Maintenance problems:14
Corruption at its peak:14
Less technology advanced as compared to its competitors:15
Poor image:15
Lack of training facilities:15
SWOT Analysis of Pakistan International Airlines:16
STRENGTHS:16
LEADING MARKET POSITION:16
BRAND RECOGNITION:16
SUPERIOR OPERATING STRUCTURE:16
NETWORK PRESENCE:17
HUB AIRPORT AT KARACHI:17
EFFECTIVE USE OF TECHNOLOGY:17
WEAKNESSES:17
FORMULATION OF GOVT. RULES:17
HIGH DEPENDENCE ON PASSENGER REVENUES:17
DEBT:18
RELIANCE ON OIL PRICES:18
OPPORTUNITIES:18
HAVING THE MAXIMUM ROUTE AND FLEET:18
GROWING DEMAND FOR LOW COST AIRLINES:18
CUSTOMER LOYALTY:18
SHIFTING CUSTOMER NEEDS:19
INDUSTRY RECOVERY:19
THREATS19
HIGH INTEREST RATES:19
ACCIDENTS:19
STRONG COMPETITION BY AIRBLUE:20
INTEREST AND FOREIGN CURRENCY EXCHANGE RATES:21
DECLINE IN AIRLINE INDUSTRY:21
PEST ANALYSIS21
POLITICAL FACTORS:21
ECONOMIC FACTORS:22
SOCIAL FACTORS:23
TECHNOLOGICAL FACTORS:23
Recommendations and suggestions:24
Implementation of program:25
Human resources and administration department:25
Management issues:25
Marketing department:26
Modernization of fleet:28
Explore more market:28
Training and development department:28
Accountability:29
Finance:29
Benefits29
References31
Sites31
Journals, Reports, Magazines,31

Executive Summary

In 1946, Pakistan International Airline was founded as Orient Airways. It provides transportation, cargo and courier services. Pakistan International Airlines serves at two levels that is Domestic and International Level. In comparison to the other Airlines which are operating in Pakistan at Domestic level, PIA expanded its networks to areas where other flights don’t fly. On the other side in international sector it is facing tough challenges in international market due to the lower fares which are offered by other airlines whereas it’s also facing competition on the routes to the Middle East and the Gulf. Due to less advanced technology, Poor Image, Over-recruitment, Nepotism and political involvement, Corruption PIA is facing financial crisis. Market share is being loosed in international and domestic market. The report is based on the current position of the PIA and problems which PIA is facing and solutions to the problems. The report is comprised of three parts. First part is about the introduction of Pakistan International Airline. The Second part tells about the problems which Pakistan International Airline is facing and further describing the problems. The third part of the report suggests the solutions to problem which PIA can apply for the better performance. In our report we did SWOT analysis and PEST analysis on PIA, and also expressed the market segmentation and market analysis of PIA. We have also studied activities in different departments of PIA. We have also gave some recommendations in order to restructure the organization by conducting interviews and briefly studied financial reports as well as their services offered by PIA.

Introduction

Brief History:
Birth of a nation; An Airline:
Air transport has probably never been more important to the development of a new nation than in the case of Pakistan. In June 1946, when Pakistan was still in the offing, Mr. Mohammad Ali Jinnah, the Founder of the upcoming nation, instructed Mr. M.A....
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