Pia Projetct Aims

Pakistan International Airline Report

Submitted To Mr. Aitzaz Khurshid

Submitted By Bilal Ahsan 073330 Sabahat ullah Khan 073328 Shoaib Tauseef 073307

First of all we are thankful to Allah then we would like to record our heartful thanks to our advisor on Specific section specially our respected Professor “Mr. Aitzaz Khurshid” and the Brand Managers of PIA “ Rana Mustafaa Yousuf Khan” (Senior Brand Officer, Brand Management) & all Members of marketing department.

Table of Contents

Company Profile……………………………………………….………1 Products and Services offered by PIA…………………………..……1  Fleets  Business Class Services  In-flight Dining  In-flight Entertainment PIA’s Network………………………………….………………………2  Domestic Network  International Network

Hierarchy of PIA…………………….…………………………............3 Vision Mission & Values………………………………………………4  Corporate vision of PIA  Corporate mission of PIA  Values SWOT ANALYSIS…………………………………….………………5  Strengths  Weaknesses  Opportunities  Threats Pest Analysis………………………………….……………………….10    

Political Factors

Economic Factors Social Factors Technological Factors

Market Segmentation of PIA………………………………………….12

   

Demographic Segmentation of PIA: Geographic Segmentation Behavioral Segmentation Psychographic Segmentation of PIA

Targeting Strategy of PIA……………….……………………………13 Positioning of PIA……………………………………………………..13  PIA’s existing Positioning Strategy  Positioning by Attributes  Positioning by Price and Quality  Introduction of Additional Low Cost Flights  Positioning by Product User Competitors Analysis………………………………………………….15  Domestic Competitor  International Competitors of PIA RECOMMENDATIONS FOR PAKISTAN INTERNATIONAL AIRLINES……………………………………………………………...17  Decentralization  Strategic Business Unit  Employee Empowerment  Overhead Costs  Two-Way Communication Findings OF Research…………………………………………………18 Comparison of PIA with Different Airlines………………………….19 Questionnaire for Research…………………………………………...20 References……………………………………………………………....22

COMPANY PROFILE Pakistan International Airlines Corporation is a Pakistan-based company that is principally engaged in the provision of air transport services. Other activities of the Company include provision of engineering and other allied services. The Company operates in two business segments: airlines operation and hotel operation. The airlines operation segment provides air transport and other allied services. Hotel operation segment provides accommodation and related services in Pakistan, United States and Europe. Its wholly owned subsidiaries include Sky rooms (Private) Limited and Midway House (Private) Limited. Pakistan International Airlines Corporation has a 99% interest in PIA Investments Limited.

Products and Services offered by PIA Fleets PIA's fleet of modern aircraft is spacious, comfortable, and designed to get you to your destination safely. PIA operates a range of advanced aircraft, ranging from the world's preferred Boeing 777 airplane to the super-quiet Airbus A-310. Currently PIA has 42 aircraft in its fleet.

Business Class Services PIA’s Business Plus class offers a range of exclusive services, from the time you leave your home till you land at your destination. It’s the only Business Class service that feels like First Class

In-flight Dining You're in For a Special Treat! Whether you are traveling within Pakistan or around the world, PIA's in-flight dining menu is sure to tantalize your taste-buds. Enjoy the best of what Pakistan has to offer, as well as a delectable selection of international cuisine.

In-flight Entertainment Let the fun begin! Aboard a PIA flight, there is so much to do that you really won't feel like landing. Movies, Music, Games, Duty-Free Shopping, Tourist Information, Maps, and Real-Time Flight Information will keep you entertained for hours.

PIA’s Network Domestic Network

International Network

Hierarchy of PIA

This organization is divided into following departments: Human Resource and Administration, Marketing, Corporate Planning, Information Services, Finance, Flight Services, Flight Operation, Engineering, Procurement and Logistics, Customer Services, Training and Development, Quality Assurance. The organogram of the organization follows, with the Chairman at the top and directors of departments reporting to him. The structure is centralized with the top-level management making the decisions.

Vision Mission & Values CORPORATE VISION OF PIA ‘To be a world class airline exceeding customer expectations through dedicated employees ‘Committed to excellence’ CORPORATE MISSION “As a Symbol of National Pride, We Aspire to be a Choice Airline, Operating Profitably on Modern Commercial concepts and Capable of Competing with the Best in the International as well as Domestic markets.” VALUES Customer Expectations PIA is the most trusted name in the industry. The reason of its goodwill is according the expectation of their customers that PIA has fulfilled always. By providing competitive tariff, extensive care,and convenience to their valued and potential customers.’ Service PIA aims at providing valuable and unique services to its customers. They are more personalized and courteous to their customers. The services are valuable and rare; this is the reason why customers trust PIA. Innovation PIA currently has a number of 43 fleets and aims at increasing this numbers to 53 by the next few years.PIA is adoptive to changes and believe in innovation that’s create new ideas and translating these ideas into action. Reliability PIA is the most experience airline with its service with more than 53 years. This has built in PIA has become the most reliable airline. PIA is known for its loyalty and consistency. Safety The most challenging responsibility of any organization is to provide complete satisfaction to its employees and customers together. This satisfaction rewards favorable and easy working conditions. The in-flight services are customers friendly and the organizational the organizational environment is also employees oriented. Cohesiveness PIA has 12 departments working in their own direction and also provides a number of services including speedex courier service, catering etc. The most impressive part is these all department and services are integrated in a cohesive way.

SWOT ANALYSIS Internal Factors

External Factors

Strengths 1. Leading Market Position 2. Brand Recognition 3. Superior Operating Structure 4. Network Presence 5. Hub airport at Karachi

Industry Recovery

Threats

Weaknesses 1. Formulation of Govt. Rules 2. High dependence on Passenger …Revenues 2. Debt 3. Reliance on Oil Prices

Opportunities Having the maximum route and fleet Growing demand for low cost airlines Customer loyalty Shifting customer needs

.

1. High Interest Rates 2. Accidents 3. Strong Competition by Air-blue 4. Interest and foreign currency exchange rates 5. Decline in airline industry ing strategiesNGective

i.e.

A.STRENGTHS LEADING MARKET POSITION PIA is one of Pakistan’s leading air carriers, with more than 800 daily flights. Around 150,000 passengers a month fly on PIA, making it one of the major operators in the domestic market in terms of passenger kilometers. PIA’s international market share was 43.5%, In the Domestic market, its market share was 69.4%. On a system-wide basis, PIA’s market share was 51.2% at the end of year 2007. Its strong market position is driven by consistently low fares as well as reliable service, frequent and convenient flights, use of new technologies like e-ticketing and self check-in terminals, comfortable cabins and superior customer service. BRAND RECOGNITION PIA has high brand recall. It is recognized by travelers all over the country. PIA is a national airline, operating passenger and cargo services covering eighty-two domestic and foreign. PIA has earned the number one ranking in customer satisfaction. This strong market position gives the company a scale advantage and helps it strengthen its brand image.

SUPERIOR OPERATING STRUCTURE PIA has maintained its position as the low cost carrier. It has been first class Pakistani airline to use the latest technology. Factors’ contributing consists of different series of Boeing and Airbus and an efficient, high-utilization and point- to-point route structure. Flying one type of aircraft significantly simplifies scheduling, maintenance, flight operations, and training activities. PIA has continually achieved high asset utilization and employee efficiency. Superior operating structure serves as the primary competitive advantage of PIA. NETWORK PRESENCE PIA enjoys a strong network in key domestic and international destinations. The company’s network includes three the major airports in Pakistan, as well as major international airport such as Dubai International Airport. Having a strong network means that PIA can generate traffic feed for both its domestic and international Flights. HUB AIRPORT AT KARACHI PIA operates from its hub in Jinnah International Airport, Karachi. Jinnah International is one of the world’s busiest airports in terms of number of passengers carried. It is also one of the largest international gateways to Asia. It is also the leading international air passenger (and cargo) gateway to Pakistan. The company’s strong presences in airports with heaviest traffic levels in Pakistan give it a competitive advantage. EFFECTIVE USE OF TECHNOLOGY PIA has successfully incorporated latest technology in all its systems, giving it an edge over competitors. PIA takes credit for introducing most new technologies to the Pakistani market. It was the second carrier in Pakistan to incorporate the c-ticketing system and the second in South Asia to introduce self check in systems at the Jinnah International Airport, Karachi.

B. WEAKNESSES

FORMULATION OF GOVT. RULES The Basic flaw of this organization is its consolidation that is centralized system. The key policies, strategies and set of laws are designed by the upper management. The centralized system is one of the biggest obstacles of long term success of PIA. PIA centralizes structure lead to barrel between different level of management, decreased motivation, hard access to information.

HIGH DEPENDENCE ON PASSENGER REVENUES Passenger revenues accounted for 87 percent of the PIA’s total revenue in 2007. Cargo services allow airlines to generate additional revenues from existing passenger flights. In addition, cargo revenues are usually counter cyclical to passenger revenues and have lower demand elasticity than passenger business, which allows airlines to pass on fuel price hikes to customers. DEBT PIA has a significant amount of 42 billion debts. Current and future debts could have important consequences for stakeholders of the company. For example, debt could impair PIA ability to make investments and obtain additional financing for working capital, capital expenditures, acquisitions or general corporate or other purposes. Debts could also put PIA at a competitive disadvantage to competitors that have lesser debt and could also increase the company’s vulnerability to interest rate increases. RELIANCE ON OIL PRICES PIA’s sustainability, growth and revenues directly depend on oil prices. A steep rise in oil prices can seriously damage the long term viability of any airline. Recently many airlines around the world went bankrupt due to rising oil prices. Airlines need to hedge against this risk by taking proper measures.

C. OPPORTUNITIES HAVING THE MAXIMUM ROUTE AND FLEET PIA is having the maximum route and fleet domestic and international destinations network in Pakistan as compared to its Competitors. Route and fleet expansion will positively impact the company’s operations by increasing revenues. GROWING DEMAND FOR LOW COST AIRLINES The growing demand for air travel is driven by lower fares and consumer confidence. A survey by International Aviation Authority showed that ticket price is the number one criterion for passengers when selecting a flight, well ahead of the availability of a nonstop service. CUSTOMER LOYALTY PIA’s frequent flyer and loyalty programs can help it retain customers. PIA’s Awards+plus (frequent flyer program) was established to develop passenger loyalty by offering awards and services to frequent travelers. Such schemes encourage repeat travel on PIA, as passengers seek to accrue the benefits given to regular travelers. This enables

the airline to retain customers and reduce costs, as it does not have to spend money targeting new customers to replace those lost to other airlines. SHIFTING CUSTOMER NEEDS The needs of air passengers are increasingly changing, as they are becoming more and more price sensitive. If PIA succeeds in making its prices more competitive, then the company will be able to gain significant market share. INDUSTRY RECOVERY Market analysts believe that the global airline industry will experience an upturn in fortunes over the next few years. This represents an opportunity for PIA, as it could generate increased revenues and command market share if it capitalizes on increases in demand.

D. THREATS HIGH INTEREST RATES The past few years have seen State Bank of Pakistan impose high as well as low interest rates to check inflation and the over heating of Pakistani economy. Inflation in Pakistan may see another raise in the short-term. ACCIDENTS There had been five accidents with PIA listed as below: • • • •

•

Pakistan International Airlines Flight PK 705 was a Boeing 720 – 040 B that crashed while descending to land on Runway 34 at Cairo International Airport on May 20, 1965 resulting in 119 fatalities. Pakistan International Airlines Flight PK740 was a Boeing 707-340C that crashed after takeoff from Jeddah International Airport on November 26, 1979. All 156 aboard were killed. Pakistan International Airlines Flight 268 was an Airbus A300B4-203, registration AP-BCP, which crashed on approach to Kathmandu's Tribhuvan International Airport on September 28, 1992. All 167 on board were killed. PIA Flight 554 is the flight number of a Pakistan International Airlines (PIA) Fokker F27 that was hijacked on May 25, 1998. The flight started its journey at Gwadar in Balochistan after originating in Turbat, and was flying to Pakistan's southern port city of Karachi. The aircraft was carrying 24 passengers and 5 crew members. Pakistan International Airlines Flight 688 (PK688, PIA688) was scheduled to operate from Multan to Lahore and Islamabad at 12:05 pm on July 10, 2006. It crashed into a field after bursting into flames a few minutes after takeoff from Multan International Airport. All 41 passengers and four crewmembers on board were killed.

PIA has to continuously ensure utmost safety and security of its passengers. Accidents can adversely affect customer confidence in PIA and result in declined revenues intensifying competition. STRONG COMPETITION BY AIRBLUE PIA is now competing against carriers such as Airblue and Shaheen Airline. PIA remains Airblue’s strongest competitor because of the huge market it has gained over time, strong brand image and customer loyalty. PIA has started new low-fares subsidiary “PIA Express” to stop the Airblue market share growing to fast. Moreover, major legacy airlines have been focusing on restructuring costs, which has improved their competitiveness. With costs restructured, the legacy airlines are becoming more formidable competitors in terms of increasing capacity, matching prices and leveraging their frequent flier programs. Increasing competition could adversely affect the company’s margins. INTEREST AND FOREIGN CURRENCY EXCHANGE RATES Fluctuating foreign currency exchange rates can have a significant impact on PIA’s earnings. For example, as PIA is providing its services to the UK. Negative or positive effects arise from exchange rate movements as change in expenses. Strengthening of foreign currencies against the British Pound will positively impact PIA and vice versa. DECLINE IN AIRLINE INDUSTRY A number of factors have caused the current decline in the airline industry. For example, the threat of further terrorist attacks since September 11 and a fall in the number of business travelers have both caused passenger numbers to fall. These and other factors may continue to affect demand for air travel in the future, which will affect revenues of PIA. The threat of terrorism may discourage people from traveling by air and could especially reduce the number of passengers traveling on international flights.

PEST ANALYSIS The macro-environment includes all factors influencing a company that are not within its control. These include political, social, economic and technological factors. These are known as PEST factors. A technique of analysis of the macro environment is PEST analysis. Environmental analysis should be continuous arid precede all aspects of planning. Since the airline industry is very much influenced by changes taking place in the environment and has undergone rapid and dramatic changes during the last decade, this analysis is especially important for PIA. Political Increased Competition (Deregulation of airline industry) Political Stability Increased Investment Opportunity

Economical Improved Purchasing Power Demand Value-for-Money Soaring Oil Prices Reduced Ticket Prices a3 avel in South Asia rose. 11

Social Greater Customer Awareness Increased Entertainment Spending Technology Averse Customers

Technological In-flight Entertainment E-ticketing (SABRE System) Automated (Self) Check-in SMS Services

POLITICAL FACTORS Political factors always have a great influence on the way businesses operate in the airline industry and the spending power of customers. In recent years it has been observed that government played an active role in increasing competition in the airline industry. A number of new airlines such as AirBlue and JS Air have been awarded licenses to enter the domestic market. Pakistan has achieved some political stability in recent years. If the management of PIA believes that the present government will perform well (consistently), then there will be more investment in the form of purchase of new airplanes and latest technology. The over all industry will grow resulting in more luxurious and comfortable flights. With the military takeover government policies have become more liberal. ECONOMIC FACTORS Currently, Airlines industry has three major players: Pakistan International Airlines, an Airblue, Aero Asia and Shaheen Airlines. Their target market includes domestic travelers as well as Pakistanis living abroad particularly in the UK and USA. These countries have strong economies coupled with high purchasing power. Customers’ purchase behavior depends very much on prices of the competing airlines as well as services offered. As

inflation rate is unstable in Pakistan, spending power of consumers has effected in the long term. In fact growth in Pakistani economy has resulted in an increase in spending power and has positively impacted the airline industry. Economically, the new millennium has been highly volatile; the September 11 attacks revolutionized the whole world. Consequently, there was a global depression in the North America, South America, Australia and Europe. However, in Asia especially Pakistan the effect in the short term was otherwise. The economy began to boom because of greater remittances from abroad and whole sum immigration by expatriates. As a result, demand for air travel in South Asia rose. Economic conditions of Pakistan are however improving. PIA has cost a advantage over its competitors because of its newly acquired, improved, long distance aircrafts from Boeing’ which give longer range and better fuel economy than any other jet currently produced. This cost advantage is a barrier to entry for new firms. However, this cost advantage will not be significant on domestic routes. SOCIAL FACTORS The social arid cultural influences on business vary from country to country. The social structure of Pakistan is closely tied. The trend is now changing as the general public is educated and is pursuing professional goals. Customers are more aware of market conditions and available options and want to get best value for their money. They spend considerable time and money on entertainment hence increasing the need of in-flight entertainment systems. Also, word of mouth has a significant impact in the use of airline services. Hajj attracts a huge number of customers. The social environment of Pakistan is turning liberal with the new regime. The initiative to automate check-in and ticket booking process might not be very popular with the general public (even educated population) is still technology averse. E-ticketing might also face significant challenges as consumers are generally reluctant to provide their credit cards information over the phone and the internet. The consumers, however, have a warm reaction to the prospect of less costly but quality service flights. TECHNOLOGICAL FACTORS Technology is vital for competitive advantage and is a major driver of the airlines industry. Major technological changes are taking place in the airlines industry with innovations in the reservations and booking systems. In-flight entertainment systems and auto check in counters are two examples of such innovations. Internet plays a key role in e-ticketing as consumer can easily reserve tickets or check the status of the flight. A key issue will be the extent, to which technological advancements (such as Internet) impact distribution and cost synergies from industry consolidation, can offset upward pressures on costs. PIA has always led the path of technological innovations by introducing new technologies ahead of its competitors such as its auto check-in counters which has helped it gain market share. It was the first airline in Pakistan to install Sabre system followed by the market leader.

Market Segmentation of PIA Demographic Segmentation of PIA: • •

Income Segmentation Occupation Segmentation

Geographic Segmentation In this segmentation PIA focuses both on segments domestic and international

Behavioral Segmentation •

Occasion Segmentation.  Hajj’s Occasion.  Eid’s Occasion.  New Years’ Occasion.

•

Loyalty Status

Psychographic Segmentation of PIA •

Social Class  Tourists  Religious Travels  Pakistani Expatriates

The existing market segmentation strategy of PIA is reasonable enough because it covers all necessary parameters that are to be focused in doing market segmentation for Airline Company.

Targeting Strategy of PIA PIA’s Existing Target Audience From the Demographic Segmentation, PIA is targeting the income and occupation oriented people. The classification of both categories is as follow. •

Income Segmentation

From income segmentation of PIA, those who falls under the category of upper class and upper middle class. •

Occupation Segmentation

From occupation Segmentation that PIA is taking in to account, there are two main sub heads of working class and business class. The working class includes all those who are working as an employee inside and outside the country. In business class all those people are included who are having business. From the Geographic Segmentation of PIA. All the audience from the domestic and international regions are included. In domestic people within the country are included and people residing outside Pakistan. From the Behavioral Segmentation PIA‘s target audience is categories as follow. In the occasion based market segmentation of PIA. •

Hajj’s Occasion.

When Hajj operation in going all those people flying from different cities of Pakistan to Saudi Arabia for the performance of Hajj. •

Eid’s Occasion.

When Eid occasions are near people within the cities and outside the country move to their homes for having Eid Occasion together with family. •

New Years’ Occasion.

Now people prefer to have New Year with their family that’s why all those people coming back to Pakistan from different countries or moving outside Pakistan to different countries and also all those people moving within the country are targeted over here. •

Loyalty Status.

PIA gives different benefits to the fliers. But all those who travel a lot get the benefit of frequent fliers which carries few discount rates on the tickets. To such audience PIA not only gives the discount facility but also the facility of pick and drop to them. From the Psychographic Segmentation of PIA, the target audience of PIA will be the following. •

Social Class

In Social Class PIA targets the tourists, religious travelers and Pakistani Expatriates. •

Tourists

All the tourists from different regions of the country or from different countries come to Pakistan for tourism purpose or go outside the country. Because PIA is having highest rate of linking the remotes areas of Pakistan. •

Religious Travels

All the religious travelers for example people going for Hajj etc are targets over here. •

Pakistani Expatriates

As PIA is a national flag carrier airline that’s why people residing outside the country feel a unique sort of feeling to get into the National Airline. PIA is not just and Airline but also acts as the ambassador of Pakistan in the whole world.

Positioning of PIA PIA’s existing Positioning Strategy Currently PIA positions itself within the following positioning strategies. • • •

Positioning by attributes. Positioning by price and quality. Positioning by product user.

Positioning by Attributes In this strategy PIA positions itself in the mind of the consumers as the reliable air transport service provider. Because from all the airline companies of the world PIA has the least crash rate. By positioning the reliability attribute of the airline in the minds of the consumers, people prefer to travel from PIA. Because of the safety attached with the PIA. Attribute of safety is also associated with the airline as PIA has the following certifications . • European Aviation Safety Agency (EASA) • IATA Operational Safety Audit (IOSA) • Civil Aviation Authority of Pakistan ( in accordance with the International Civil Aviation Organizations Standards)

Positioning by Price and Quality In this positioning strategy, PIA paints the image of being the less price taker and providing high quality to the customers as compare to the competitors. Examples is given below.

Introduction of Additional Low Cost Flights “PIA express” PIA has introduced additional low cost flights. PIA express at 20% less fare. • • •

This facility is available in Business Plus, Economy Plus & Economy C lass. No meals. Stand by fares applicable.

Positioning by Product User PIA positions itself as an ambassador of Pakistan in the world. Pakistani expatriates residing outside the country feels proud when they see an airline of their own homecountry carrying the national flag. This arises the loyalty factor in the hearts of the expatriates and they prefer to travel by PIA.

Competitors Analysis Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. Created by Michael Porter competitor analysis focuses on four key aspects: competitor's objectives, competitor's assumptions, competitor's strategy, and competitor's resources and capabilities.

Competitive Advantages of PIA • • • • • • •

Reliability an d safety Has best engineering facilities. Has best trained pilots. National flag carrier. Pakistani expatriates when step in the PIA plane they get they homely feelings because of the national airline which plays a role of ambassador. High linkage to the remote areas of Pakistan. Using state of art technologies and highly equipped engineering.

Competitive Position of PIA The competitive position of PIA is Differentiation because PIA has created highly differentiation products e.g. for the economy class and for the business plus class. PIA has different and unique product characteristics and features which cater the needs of the respective customers.

Competitive Moves PIA is having 48.4% market share internationally and 65% domestically, and PIA has the Market Leader Competitive Move in Pakistan.

Competitor Attack Strategy The attack strategy of PIA against its competitor Air Blue is Flanking Attack Strategy. Air Blue has not that much access to the remote areas of Pakistan than PIA has. Due to this weak point of Air Blue, PIA is attaining the flanking attack strategy against the Air Blue.

Existing Competitors of PIA

PIA operates both domestically and internationally. So it has different competitors on both scales of operations.

Domestic Competitor

Within the country PIA has Airblue as a competitor. Airblue is a private airline based in Karachi, Pakistan. It is a scheduled domestic and international airline operating 30 daily services linking seven domestic destinations and international services to Dubai and Manchester. Its main base is Jinnah International Airport, Karachi. Airblue was the first airline in Pakistan to introduce e-ticketing, wireless check-in and self check-in kiosk facilities.

Achievements and Recognitions • • •

Pakistan's fastest growing airline. First airline in Pakistan and only the third carrier in the region behind Emirates Airline and Royal Jordanian to introduce the latest self service check-in facilities at Jinnah International Airport, Karachi First private airline in Pakistan to fly long-haul international route (IslamabadManchester) with a refueling stop at Ankara, this has since been moved to Trabzon.

International Competitors of PIA PIA is having market share of 48.4% in the international market and having tough competition from its international competitors. Following international competitors of PIA. • • • • •

Thai Airline Ethad Airways Qatar Airways Singapore Airline Emirates Airline

RECOMMENDATIONS FOR PAKISTAN INTERNATIONAL AIRLINES Decentralization PIA should decentralize its structure that would lead to the easy management, increased motivation, easy access to information and resolution of the conflicts (as they would be resolved by the immediate manger time span would then reduced). Since employees issues regarding their behavior would lessen, so it would ultimately lead to more satisfied employees that would result in enhanced productivity of the organization.

Strategic Business Unit PIA should make its different departments into Strategic Business Unit. Every SBU should have a defined business strategy and a manager with sales and profit responsibility. As PIA is a large organization, so it must be convert into SBUs. Different factors should be determined for the success of SBUs which as follows: The degree of autonomy given to each SBU manager The degree to which an SBU shares functional programs and facilities with other SBU's The manner in which the corporation evaluates and rewards the performance of its SBU managers

Employee Empowerment PIA should make efforts towards empowering the employees that is going to lead to more employee participation in the decision making process and also result in more employee satisfaction and enhanced motivation. Apart from this, employees would feel more independent to discuss the issues explicitly without hesitation. This would also enhance team work process at PIA as quality team and cross-functional teams. The employees will work with more commitment and dedication and every employee would work to his/her fullest due to increased motivation. However, with empowerment comes accountability, so it is suggested that while they empower their employees, there should also be a “controlled check’’ on them to ensue the correct usage of power delegated to every employees within their circumscribed limits.

Overhead Costs PIA should also reduce its overhead costs that are it should mange its resources: labor more effectively, so that with less input, more out put can be achieved and the saved resources can be utilized in other areas such as introducing more training courses for the employees so that the quality of the workforce could be increased. Hiring the services of expertise can improve the efficiency of their services, so by saving the overhead costs, they can utilize that money for the expertise services. So by analyzing the various segments of the organization and making the right corrections, it can substantially improve the standards of Organizational behavior.

Two-Way Communication The suggestions of the employees can prove to be very effective in improving the operations as they are the ones who manage them. Therefore, a top-down approach should be replaced with two-way communications. In this way, the employees would feel motivated and valued as they would be included in decision-making.

Findings OF Research After conducting research, the following results have found which follows as bellow:

Selection of Airline According to research in , 60% people utilize the services of PIA, 30% people utilize the services of airblue and only 10% people utilize the services of shaheen International Airline.

Reason for Selection of Airline According to research in, 50% people selected the service of airline taking into consideration the price, 30% people selected the service of airline taking into consideration the service, and 10% people selected the service of airline taking into consideration on many grounds which are related to their desired destination.

Comparison of PIA with Different Airlines After conducting the research we have rated the different airlines in the following manner. Attributes Destinations Punctuality Quality of Food Hospitality/Customer Service Economical Technological Advancements Services Corporate Image

Total Points

PIA 6 5 5 6 5 5 5 6

AirBlue 5 6 6 5 5 5 5 3

Shaheen Air 4 4 5 5 5 5 4 4

43

40

36

Questionnaire for Research

Pakistan International Airline Questionnaire PLEASE SHARE YOUR EXPERIENCE, VIEWS AND COMMENTS WITH US Name: __________________________ Age: ___________ Sex: Male Female Occupation: __________________________ Qualification: _________________ 1. How often do you take airline travel? Less than 1 month 1 month to 2 month Or __________________________.

2 month to 3 month 3 month to 4 month

2. Which airline you always/usually select to travel (domestic)? Pakistan International Airline “PIA” Airblue Shaheen Air International Or Any Other ___________________________. 3. Is there any particular reason why you usually choose that PIA? Service Price Other, please specify below

4. How did the selected airline price compare to your expectations? 1 (Excellent)

2 (Very Good)

3 (Good)

4 (Fair)

5 (Poor)

6 (Very Poor)

5. How did the selected airline Value for Price Paid compare to your

expectations? 1

2

3

4

5

6

6. How would you rate the overall value of the selected airline? 1 2 3 4 5

6

7. What are good aspects of selected airline that attract you?

8. What are some aspects of selected airline that can be improved?

9. Do you think that all the above qualities exist in PIA, did you agree? If no, so please specify it below.

10. How do you consider the price of PIA? Very Expensive Expensive

Average

Low

Very low

11. When I have a problem with travel arrangements, the airline shows sincere interest in solving it? Yes No Never had experience like this. 12. How will you compare PIA with different airlines in the following services? (Please fill the table according to 1 for Excellent, 2 for Very Good, 3 for Good, 4 for Fair, 5 for Poor and 6 for Very Poor.) Attributes

PIA

AIRBLUE

Destinations Punctuality Quality of Food Hospitality/Customer Service Economical Technological Advancements Services Corporate Image Safety of luggage 13. What are some important strategies that you would like to recommend?

Shaheen Air

References •

www.google.com

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www.piac.com.pk

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www.wikipedia.org

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PIA Sales Promotion Officer, Lahore

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DAWN News Marketing Department (contact no: 5711579, 111365365)

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FM radio Marketing Department (contact no: 111111103)

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Jang News Marketing Department (contact no: 6367480)

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PTV Marketing Department