Financial Analysis of Pakistan International Airline

Topics: Pakistan International Airlines, Airline, Karachi Pages: 14 (2653 words) Published: January 29, 2011
Name : Yasir Aslam khan

Student id : 0702KDKD1009

Semester : 3

Course : BSGE

Due Date : 01/12/2010

Title : Strategic Analysis of PIA (Pakistan international airline )

Contents
1.0 Backgroud3

2.0 Introduction :4

3.0 Overview Of the Company :6

4.0 SWOT Analysis7

1)Strengths7

2)Weakness7

3)Opportunities8

4)Threats8

5.0 PEST Analysis8

1)Political Analysis8

2)Economic analysis9

3)Social analysis9

4)Technological analysis9

6.0Porter’s five forces analysis10

Bargaining Power of Suppliers10

Threat of Substitute Products11

Threat of New Entrants11

Competitive rivalry in the industry11

7.0 Value Chain Analysis11

Secondary Activities12

Procurement12

Human Resource Management12

Technology12

8. 0Recommendations13

1.0 Backgroud

After a short period of independence, Pakistan decided in 1951 that it needed an aerial line of carrier of national flag; the government of the country established consequently the international airline Companies of Pakistan.On 11 March 1955 PIA formally took over the assets and routes of another Pakistani operator, Orient Airways, which had in effect been part of PIA since October 1953. The consolidation of the two airlines meant that PIA could enlarge its domestic network with 11 Douglas DC-3 and two Convair CV-240 aircraft, which left the Super Constellation machines wholly free for international services.(ali, 2000)

(ali, 2000) describes that the modernization of floats it used for the operations domesticate and regional was now a question of high priority, and in the month of May 1956 the aerial line passed an order for three examples of the Viscount of Vickers 815 airplane of four turbo planes the first one of which was accepted in the United Kingdom on January 2 1959 for a beginning in the income that wins the service on the service that Link up Karachi and Delhi on January 31 1959. The amplest improvement entered 1961 with the beginning of the Fokker F-27 types of twin turbo planes of Friendship, of which first was received it on January 3 1961. The availability of the F-27 for the operation on the roads that link up the major Pakistani cities liberated the DC-3 floats for the usage on the new services to the more removed parties of Pakistan of the East side which is now Bangladesh.

PIA was the first Asian airline with the airplane of pure throw, in the form of an a Boeing 707-321 machine rented Saucepan Airways American World-wide for the usage of 7 March 1960 on the service of London that was spread to New York on 5 May 1961. On December 21 1961 PIA began receiving his own airplane to reaction when it took the delivery of the first one of three Boeings 720-040 B airplane, of which availability allowed the operator to enlarge his network of international road (ali,2000)

2.0 Introduction :

Pakistan international airlines is the national airline of Pakistan. It has been a pioneer is airline industry in Pakistan since its start in 1955. PIA was the first no communist country to fly in china and in 1962 PIA set a record of flying from Karachi to London in shortest interval of time.

PIA continues to grow. The ever committed organization for innovation and highly skilled staff. With a range of new and efficient airplanes, the PIA crew and staff is committed to set a incredible experience throughout the world. However, in recent years there has been a decline in the profits of PIA.(annual report of pia, 2008)

Despite of Government involvement in the organization, PIA has witnessed tough time with respect to performance and profits. 2008 was the year where the profits went immensely down . The major problems included Financial, operational, marketing and union strikes .

Consequently, PIA lost shares in the market after this downfall . at the same time, the increase in Oil prices hit the organization badly. Apart from this,...

References: :
Abbas, ali. (2000). History . Available: http://www.historyofpia.com/history.htm. Last accessed 19 Nov 2010.
Abbas, ali. (2000). History. Available: http://www.historyofpia.com/facts.htm. Last accessed 19 Nov 2010.
PIA. (2004). Mission statement. Available: http://www.piac.com.pk/piaprofile/profile/2004/missionstatement.pdf. Last accessed 16 Nov 2010
PIA. (2004). ethics. Available: http://www.piac.com.pk/piaprofile/profile/2004/statementofethics.pdf/. Last accessed 16 Nov 2010
Abbas, ali. (2000). history of pia. Available: http://www.historyofpia.com/. Last accessed 19 nov 2010.
abacus. (2007). news events. Available: http://www.abacus.com.pk/news_events/travel_secure.asp. Last accessed 22 nov 2010.
PIA. (2008). annual report of pia. annual report. 1 (1), 78.
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