Preview

Pia Crisis

Better Essays
Open Document
Open Document
986 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pia Crisis
The Pakistan International Airlines is suffering from severe financial crisis. It is, in fact, passing through a critical phase because of poor management, lack of maintenance, nepotism, corruption and financial issues. There are complaints of terrible service, long delayed flights, emergency crash landings, cancellation of flights, shortage of planes, unclean toilets that smell from a distance and non-serious attitude of the administration. These issues create frustration among the passengers. They feel fear and life risk while travelling through PIA. The Airlines is at the brink of disaster. It needs exemplary leadership, qualified and merit based staff and technically strong administration to improve its performance and save it from the clutches of the wolves.

PIA has, in all, 39 aircrafts in its fleet comprising of 4 Boeing 777-200 ER, 3 Boeing 777-300 ER, 2 Boeing 777-200 LR, 6 Boeing 737-300, 5 Boeing 747-300, 12 Airbus A310-300 and 7 ATR 42-500. A number of aircrafts have been grounded due to shortage of spare parts or overhauling. These include Boeing 747s, Boisiseing 737s and Airbus A 310. It is generally believed that PIA high-ups are responsible for the inconvenience of the passengers. The whole system needs overhauling.

PIA is facing serious problems. The major problems faced by PIA are increase in oil prices, overstaffing, devaluation of local currency, political interference and its weak financial position since the last decade. PIA has suffered huge loss of more than 64 billion rupees from 2005 to 2008. It has also suffered huge losses in 2009 and 2010 particularly due to increase in the price of the fuel and devaluation of Pakistani rupee. It is, now, just like a white elephant. The bad governance, poor performance and corruption are the major causes of its failure. The Pakistan International Airlines is a big organisation with more than 18000 employees. PIA was known all over the world for its excellent performance and superior quality. That

You May Also Find These Documents Helpful

  • Good Essays

    Air Canada - Risk Management

    • 2529 Words
    • 11 Pages

    The airline industry is one of the largest global industries in the world. Airline companies in the airline industry have gone through challenging obstacles in the past decade. Many changes have occurred within the industry and increased regulations have driven up cost for the industry. The attacks on 9/11 left the industry in shock when planes were used in terrorist attacks in the United States. These attacks changed the mentality of the industry and shifted the focus towards safety. Safety was also a major concern in the industry with the breakout of SARS in 2003 and the H1N1 flu in 2009. The airlines had to ensure that public health and safety of the travelers were their main priority. Safety comes at a big price for the industry since a breach in safety can affect the reputation of the company and industry.…

    • 2529 Words
    • 11 Pages
    Good Essays
  • Good Essays

    Spice Jet

    • 706 Words
    • 3 Pages

    affordable and dynamic fare structure, power of technology, power of performance, power of safety and experienced management. However, the company is unable to maintain consistency in its services through out its operations across the country and is bugged with problems like flight delays, bahaviour of the staff, service levels, etc.…

    • 706 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    As technology rapidly develops in the 21st century, so are goods and services in the competitive market. The airline industry in Asia is one of those undergoing ¡§a tidal wave of changes¡¨, causing a drastic alteration in the business landscape. Some of these changes were not heard of before,…

    • 2522 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    The state owned airlines suffer the maximum from this problem. These airlines have to make several special considerations with respect to selection of routes, free seats to ministers, etc which a privately owned airline need not do. The state owned airlines also suffers from archaic laws applying only to them such as the retirement age of the pursers & hostesses, the labour regulations which make the management less flexible in taking decision due to the presence of a strong union, & the heavy control &interference of the government. This affects the quality of the service delivery & therefore…

    • 820 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Pakistan International Airlines Boeing 747-300. The Government of Pakistan is the majority stake-holder in the country 's flag carrier.Many countries have national airlines that the government owns and operates. Fully private airlines are subject to a great deal of government regulation for economic, political, and safety concerns. For instance, governments often intervene to halt airline labor actions in order to protect the free flow of people, communications, and goods between different…

    • 4400 Words
    • 18 Pages
    Best Essays
  • Powerful Essays

    Pilots Forgetting How to Fly

    • 3288 Words
    • 14 Pages

    In this paper, we discuss particular mechanical and human faults during flight, pilot error in aviation, awareness of situations and reducing error on pilot’s behalf. All aircraft mainly fly straight and level on a navigational course without usually, a pilot attention greatly prohibiting pilot's workloads. Most aircraft flying today really don’t have an autopilot system in it. New age autopilot systems relatively use computer software to control aircrafts. We explore the reasons for the reluctance of the pilots errors and training towards known flight procedure during a in flight situation. The computer deliberates the current aircraft position in the air, and then directs the Flight Control System to adhere to the aircraft maneuvers. Even though the auto control system handles and maneuvers dangerous situations, it can generally thrust an aircraft with less than normal fuel-consumption than a human pilot itself.…

    • 3288 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Key Functions of Airlines

    • 18089 Words
    • 73 Pages

    The overview of this course is to give the future managers an inside view of Airlines management which is spread to various, functions, department and sub department. It is also deal with the various key functions and also the support functions of the air carriers.…

    • 18089 Words
    • 73 Pages
    Good Essays
  • Satisfactory Essays

    Lucio Tan, the owner and Chairman of Philippine Airlines (PAL) was faced with a problem. Despite unacceptable…

    • 387 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Indian Railway

    • 904 Words
    • 4 Pages

    To fix the problems faced by Pakistan Railways (PR), I recommend the process with following key steps:…

    • 904 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    The national carrier, PIA, will be privatised – reflecting the fact that, over the years, governments failed to control its decline. It has been losing Rs3.3 billion a month and the government’s hope is that the losses will be stemmed by handing over 26 percent of the shares and management control to a private entity. To make this a viable option, Prime Minister Nawaz Sharif has directed the PIA management to undertake a cleanup task so that buyers would step forward. It must be noted that airlines around the world are losing money right now because of the high international price of oil. On top of that PIA has additional issues like maintaining the highest ratio of employees to aircraft of any airline in the world. In this climate there may not be many buyers forthcoming unless they are provided all kinds of benefits and assurances. Previous administrations, like that of Pervez Musharraf, tried to sell off PIA and found there were no takers. Given the scandals that stemmed from past privatisation exercises, it is a good sign that the PM has stressed transparency and openness in the conduct of the process. This should be a priority and we hope the mechanism that is worked out will ensure this. The last thing we need is any allegations of wrongdoing or favouritism. Indeed from this point on the affairs of PIA need to be closely watched so that the path leading up to the selling of shares is not riddled with controversy or doubt. If the most likely purchasers emerge from the ruling party or their tycoon friends a disaster could be in the making. If somehow a monopoly occurs over air travel in the country, it would reek of political favouritism and patronage rather than doing what is in the best interests of consumers. The higher courts may eventually again be dragged in.…

    • 1878 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Tdap

    • 452 Words
    • 2 Pages

    EPB thus contributed in a significant manner, as Pakistan’s exports - reported at just under quarter of a billion dollars in 1963 - increased by over 70 times to touch nearly US $ 16.5 billion in 2005/06. However, professional human resources were lacking at the times of EPB, and so in order to improve this deficiency, and to change the image of EPB as a “Bureaucratic Organization”, need was felt for EPB’s metamorphosis into a more dynamic, professionally well-equipped organization, which was to be the TDAP.…

    • 452 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Pakistan these days is facing an immense crisis in political, social and economic drawback, recently Pakistan is passing through a series of chronic and painful problems include political, socioeconomic, energy crises, security, uncertainty in Balochistan, day to day suicide bombing, foreign Drones attacks and worst situation of law and order in FATA and NWFP. These all are brain blasting and heart pinching for all true Pakistanis.…

    • 1848 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Railways

    • 7554 Words
    • 31 Pages

    Over the past many years, Pakistan Railways has been facing problems and is now on the verge of bankruptcy. With budget deficit of billions, eroding market share and corruption scandals, the future of Pakistan Railways – once the life line of the country – is grim. At the time of independence, both India and Pakistan, inherited the Railway Network laid down by British. While Indian Railways has emerged as a highly profitable organization, Pakistan Railways is struggling to keep itself running.…

    • 7554 Words
    • 31 Pages
    Powerful Essays
  • Powerful Essays

    Bureocracy

    • 11099 Words
    • 40 Pages

    8 Crises group Interview in International Crises Group, “Reforming Pakistan’s Civil Service” Asia Report No185, ICG Report (2010)…

    • 11099 Words
    • 40 Pages
    Powerful Essays
  • Better Essays

    Pak Railway Thesis

    • 2755 Words
    • 12 Pages

    Pakistan Railways, lifeline of the country, is a national state-run transport service. It is under the administration of federal government and its head quarter is in Lahore. It is an important source of transportation throughout Pakistan. It carries millions of passengers throughout the country. It used to carry huge freight in Pakistan. This cheap and safe mode for passengers is now facing a number of issues. A number of services of Pakistan Railways have been cancelled, suspended or terminated and many more will be suspended in near future because of mismanagement and shortage of locomotives, fuel and money. The chapter of all major services, from Lahore to Karachi, has been closed. It is pertinent to mention that all AC serviceshave been stopped. The incompetent administration has failed to attain locomotives from any quarter of the world. Passengers are suffering due to mismanagement of administration. Pakistan Railways decision to suspend goods train service due to severe shortage of locomotives and fuel is another blow to this organization. It is now basically financially bankrupt organization. In other words it is on the verge of financial collapse.…

    • 2755 Words
    • 12 Pages
    Better Essays