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Executive Summary

Pakistan International Airlines (PIA) is Pakistan's national flag carrier established in 1955. It provides both domestic and international transportation as well as cargo and courier services. PIA faces competition domestically and severe challenges internationally from other airlines offering lower fares. Due to issues like rising oil prices, overstaffing, and mismanagement, PIA is facing deep financial crisis and losing market share. The report analyzes PIA's strengths, weaknesses, opportunities, and threats through a SWOT and PEST analysis. It recommends strategies for PIA such as decentralizing management, developing business units, improving employee motivation, reducing costs, upgrading aircraft, and focusing on quality to better compete in the industry.

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117 views

Executive Summary

Pakistan International Airlines (PIA) is Pakistan's national flag carrier established in 1955. It provides both domestic and international transportation as well as cargo and courier services. PIA faces competition domestically and severe challenges internationally from other airlines offering lower fares. Due to issues like rising oil prices, overstaffing, and mismanagement, PIA is facing deep financial crisis and losing market share. The report analyzes PIA's strengths, weaknesses, opportunities, and threats through a SWOT and PEST analysis. It recommends strategies for PIA such as decentralizing management, developing business units, improving employee motivation, reducing costs, upgrading aircraft, and focusing on quality to better compete in the industry.

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Executive summary:

Pakistan International Airlines is the national flag carrier and was established in 1955. It not only
provides transportation services, but its operations extend to providing cargo services and courier
services also. Pakistan International Airlines serves two markets. Domestic and International. In
the domestic sector, it has outperformed itself by stretching its networks to areas where other
airlines do not fly to. In the international market it faces severe competition, especially due to the
fact that these international organizations are providing fares much lower than Pakistan
International Airlines. Internationally also, Pakistan International Airlines is encountered with a
severe and strong challenge with many renowned international names. Due to fierce competition
and rising oil prices, international aviation industry regulations and some internal factors such as
human resource issues of over recruitment, de-motivated employees, mismanagement of
resources both in case of manpower and other resources, aged fleet, corruption and lack of
accountability PIA is facing a deep financial crisis. It is losing its market share both in
international market and domestic circuit. The present report is written about the current situation
of PIA and future plan of action for PIA. PIA is three stars International Airline. In our report we
did SWOT analysis and PEST analysis on PIA, identify major strength we find as leading market
position, brand recognition, superior operating structure, network presence, hub airport at
Karachi, and effective use of technology. Formulation on GOVT rule, High dependencies on
passenger revenues, high debt, and reliance on oil prices are major weakness, opportunities are
like having MAX route and fleet, growth demand for low cost airline, customer loyalty, shifting
customer needs and industry recovery, and major threats are high interest rates, accidents, strong
competition by Air blue, interest and foreign currency exchange rates, and decline in industry. In
PEST analysis we discover major Government’s active role in increasing competition in the
airline industry, inflation rate, turning of social environment of Pakistan liberal with the new
regime. The report comprises of three sections. First section introduces the organization and
gives an overview of Pakistan aviation industry. The second section focuses on determining the
problems areas and describing it. The third part of the report calls for the immediate changes that
are required to make in PIA in order to take out some better performance from the national flag
carrier. It describes the department wise strategies internally as well as strategies to face external
threats such as rising oil prices and providing better services in a competitive environment. We
recommend PIA for better service to decentralized its management system, develop SBUs, adopt
transparent promotion polices, employee empowerment to increase the employee motivation and
moral. Try to decrease its overhead cost, adopt effective marketing policy, two way
communication and TQM. Upgrade its fleet; purchase new Airplane with twin engines these will
reduce the operating cost of PIA. Improve control over fares. Hire the services of IT specialists;
improve service standards focusing on quality.

INTRODUCTION:

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