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SWOT ANALYSIS OF PIA & Air-Blue
SWOT ANALYSIS OF PIA & Air-Blue
SWOT ANALYSIS OF PIA & Air-Blue
Purpose: The main purpose of this report is to carry out the in-depth SWOT (strength,
weakness, opportunities and threats) Analysis of the two airlines namely Air-blue and PIA in
order to identify internal and external factor and its affect on future performance of these airlines.
It is very important to know SWOT of a company in order to compete in the market and make
rational decision for current and future firm operations, it also provide good ground for
analyzing and implementing strategies based on the findings and results. Beside SWOT, in our
interviews with high profile of these airlines we will try to get insight for PESTAL and porters 5
forces model which then will be analyze along with SWOT; moreover with the help of these
strategies and model we will conduct our research in order to make PIA and Air-blue more
efficient and overcome their lacking.
Research Implications/ Limitations: The aim of research is to basically identify and examines
the SWOT of PIA and air-blue and present it in comparison. Thus the main limitation of the
study is, it only Focus on PIA and air-blue both local airline and both havent performed well in
past few years therefore study cannot categorize between good and bad airline. Apart from it the
study only focuses on the management of PIA and air-blue due to time constraint we cannot
collect information from the final user regarding what they consider as a strength, weakness,
opportunity and threat for PIA.
Scope: Through this study it will help PIA and Air-blue to get better understanding of their
strength, weaknesses, opportunity and threats on their company with the help of this research
they can forecast the future operations of the firm and improve performance as well.
PURPOSE OF RESEARCH:
The researchers of this journal are Faizan Ali, BiditLal Dey and Raffaele Filieri. The journal was
published in International Journal of Quality & Reliability Management, Vol. 32 Issue 5 pp. 486
- 502, 2015. The aim of this research paper is to evaluate the service quality of PIA (Pakistan
international airline) and its effects on customers satisfaction among overseas Pakistanis and
foreigners.
RESEARCH METHODOLOGY:
Quantitative approach used in this research data will be gathering through both primary and
secondary methods for secondary different journals of quality management and reliability were
used beside this article, websites and different books were used. While for primary data
collection survey questionnaire has been adopted survey conduct from foreign and nonresident
customers of PIA Westbrook and Oliver (1991). Data instrument consist of 39 items in
questionnaire including airline tangibility, terminal tangibility, personal item, empathy item and
customer satisfaction items are based on the research hypothesis which is test through 5 points
likert scale Prayag (2007). Before conducting the actual survey pilot study from 25 customers of
PIA who have travelled through PIA in last 12 months was gathered in order to check the
reliability of the questionnaire.
SAMPLE SIZE:
Target population of this study are all passenger who flown through PIA in the last 12 month,
survey conducted face to face in the waiting lounge of Manchester airport and Birmingham
airport in 2012 through convenience sampling. Sampling conducted by distributing questionnaire
to passenger on different times over a day and night for 8 week time period. Sample size of the
study is 848 out of which 498 were handed back with response rate of 58% shows better result
than the previous research on the same area.
RESEARCH FINDINGS:
The research observe the relationship between customer satisfaction and service quality
elements and the study focus on overseas Pakistanis and foreigners who travelled from PIA and
acquire their services . Research findings shows that all hypothesis are positive and support the
study and shows relationship between independent and dependent variable and customers are
influence by the PIA service quality dimension, airline tangibles, terminal tangibles, personnel,
empathy and image. The findings and results of the study are contrast with the previous study
and this study shows that by improving the aircraft and terminal tangibility customer satisfaction
level will improve more. More over study also suggest better quality of interaction with
personnel will result in improved customer satisfaction. Empathy and brand image also indicates
positive relationship with the customer satisfaction.
Apart from this the results also show that beside the stated dimension of service quality
management should also focus on others aspects in order to increase customer satisfaction level.
Lastly Paper suggests that PIA should start a strategy of service differentiation in order to
improve its lacking area in quality of service. Furthermore in service quality of airline catering
service play a vital role therefore PIA should update and focus on their catering. Paper also
recommend in order to create good and reliable image of PIA among overseas Pakistanis and
foreigners PIA should do the periodic maintenance and service of their planes and engines along
with effective cargo handling procedures.
Literature Review # 2(Reviewed by Sanaullah Munir)
PURPOSE OF RESEARCH:
The researchers of this journal are Muhammad Zaheer, Muhammad Tahir Akbar and Dr.
Muhammad Ramzan. The research was published in INTERDISCIPLINARY JOURNAL OF
CONTEMPORARY RESEARCH IN BUSINESS, Vol. 5, Issue 2 pp. 192 - 204, 2013. The main
aim of this research was to understand how customers perceive Pakistan International Airlines
based on the level of satisfaction through their travel journeys along with identifying reasons that
adds to the bad image of PIA prevailing in the Aviation industry by critically examining its
strengths and weaknesses from the point of frequent flyers considering various dimensions of a
good airline service, i.e. in-flight services, customer services, food quality, crew members'
attitude, fare rates and flight delays.
RESEARCH METHODOLOGY:
This research uses both primary and secondary methods of gathering and analyzing data. Primary
data was collected from conducting interviews with the frequent flyers of the airline as they are
the people who have clear idea of the service quality of the PIA residing in Lahore. Along with
this, questionnaire was formulated based on some variables that would clearly define the image
of PIA in terms of customers perception. Secondary data was collected by analyzing various
descriptive studies, articles, journals and annual reports.
SAMPLE SIZE:
In this research in depth interviews were taken from only the frequent flyers residing in Lahore;
10-12 respondents were selected based on their past travelling frequency.
RESEARCH FINDINGS:
Understanding this research, it was inferred that PIA faces many problems being a part of the
aviation industry in Pakistan in terms of the competition they are facing along with an increase in
the labor costs and extra charges that they have to borne despite stagnant performance.
Furthermore, it is found that an airline to be no-frill, must take into considerations the regulations
that affects the civil aviation along with adherence to the safety regulations that are an industry
norm.
Secondly, the variables that contribute to the bad image of the airline in the minds of the
consumers are lack of quality ambience in an aircraft, non-cooperative crew members, and
unjustifiable fare rates that are making them lose their market share despite being the market
leader. Furthermore, PIA has a lot of image building to do because it has not created an
impressive image in the market in the past few years. The main reasons were last minute
cancellation or late timings of the local flights. Also the planes used for local flights were in very
poor condition.
Lastly, the research explains that in order to gain their image back in the minds of the consumer
especially the people who fly very frequently with the airline, PIA has to focus on improving the
quality of their service along with improvement in the in-flight services, booking services, food
and most importantly their overall flight experience from the start to the end.
Literature Review # 3(Reviewed by Yasir Abbas Merchant)
PURPOSE OF RESEARCH:
This work of Mr. Sartaj Qasim (2015) sheds light on the service and value factors that are of the
highest importance to passengers traveling by air transport mostly on domestic flights within
Pakistan. The research is an airline industry specific document which revolves around the
Pakistani customer preferences only.
RESEARCH METHODOLOGY:
The primary research objective was to recognize those service aspects that airline passengers
typically consider most and least important when travelling via domestic airlines in Pakistan. The
mean importance ratings obtained for each of the service items were calculated and ranked from
the highest to the lowest scores. Overall, the service factors were ranked within the following
four dimensions labeled: convenience of booking, cabin services, cabin crew, and timeliness of
flight. The literature gathered around domestic flying airline passengers like: PIA, Air Blue,
Shaheen and Bhoja Air.
A questionnaire was developed by De Jager (2013) which was adopted with certain minor
modifications in order to gauge the foregoing attributes and passengers expectations regarding all
phases of the air travel experience. It was used to collect information from passengers at Quaid e
Azam International Airport, Karachi over a two week period. In addition to this, they also took
personal interviews with passengers and the information was recorded over a 2 week period. A
7-point Likert scale was used ranging from 1 being most important and 7 being not at all
important. The Hypotheses presented by the research argued upon each of the 4 service quality
aspects being important to the traveling passengers.
SAMPLE SIZE:
The sample size was 100 passengers from Quaid e Azam International Airport. The sample was
selected through convenience sampling technique. The survey methodology included personal
interviews from the passengers.
RESEARCH FINDINGS:
The main research objective revolved around recognizing those service aspects that domestic air
passengers rate the highest and the lowest in importance. The mean importance rantings obtained
for each service item were calculated and ranked from highest to lowest. The highest mean rating
was given to convenience in making the reservation/booking by the Pakistani passengers
whereas; the lowest rating was given to adequacy of information on airline websites. The factor
rated the second most important was the allowance of weight by the passengers. In the second
phase of the study, the relative importance of the four dimensions were analyzed and studied.
The results show timeliness of flights was rated the most important dimension amongst all three
dimensions.
Research Findings and Discussion: (Thematic Analysis of Interview with PIA
and Air-blue management staff.)
1: Would you please share your main achievements over the last three years?
Air-Blue
P3
2. Can you please tell us about your success in achieving your strategic objectives?
4: What do you think about your current services? Do these services meet users requirements?
5: Would you please share your opinion about how is your organization regarded externally?
Does it have a good reputation? Are you able to build effective relationships with those you wish
to influence? Do you have a positive relationship with your funders/supporters?
Participants Answers Theme
PIA P1 I still remember the time when PIA was one of
the few things we could talk about with our heads
held high. We felt pride not at the condition of
the age-old planes or technology; not at the in-
flight entertainment system or even the food. It
was not pride in the basic comfort and facilities
provided. Rather, this pride, was for the people
working in PIA the quality and finesse of the
pilots, the expertise and competence of the
technical staff and engineers, the knowledge and
capability of the cabin crew, and of course their
grace and beauty. But now PIA is not regarded as
a reliable and good option for traveling. With the
decline in service and quality, PIA got trapped Here they have focused on
into endless scandals and losses, not just in dollar their weaknesses and
value but in goodwill and reputation. Its hard to reminiscing the old times
believe that the airline that was Asias first to and telling their current
acquire a jet plane in its fleet back in the 1960s situation.
has fallen behind all its peers in the race to
upgrade, update and improve its image. Therefore
its relationship has become weaken with its
supporters.
PIA P2 Certainly not it was in old times but not now we
listens news regarding its downfall in service
quality and management mishaps on television
which shapes the perception about our air line
and as I said we need to improve a lot of things to
be like we were in the past and benchmark for
even emirates back then.
Air-Blue
P3
6. Please share your view about the effectiveness of your management systems and
processes? Is your organization well-structured and efficient or overly bureaucratic?
7. Please tell about the competition from other or similar organizations in your area?
Strength Weakness
1. Subsidized fares. 1. Old aging fleet of PIA causing higher
2. Halal meat available at all flights operating cost.
3. Electronic ticketing by web and through 2. Huge burden of Employees which cause
SMS. financial burden.
4. Highly Professional Staff. 3. Inadequate space on the aircraft.
5. Having Governments protection. 4. Charging of higher fare as compared to
6. PIA has status of being Flag Carrier of competitors.
Pakistan. 5. Lack of marketing activities as
7. Highest Market Share at domestic compared to competitors.
network. 6. Poor quality of food/service on board
8. Multilingual Staff on Board. especially in domestic flights.
9. Booking Offices in all major cities both 7. Corrupt management
at domestic and International 8. Lack of professionalism among staff
10. PIA has well established brand as its 9. Low salary of staff specially engineers
oldest airline in Pakistan.
Opportunities Threats
1. PIA has huge potential market in Middle 1. Negative rising perception about the
East if PIA upgrades its fleet. country, regarding terrorism.
2. PIA has largest domestic network and 2. Political instability and law and order
by proper route planning PIA can situation.
generate huge amount of Revenue with 3. Rising fuel prices in the world.
higher profit. 4. Over staffing at all levels.
3. PTDC provides favorable market for 5. Strong competition
domestic as well as international sectors 6. Frequently rising Airlines fare.
for the airline. 7. Fast growing domestic and international
4. PIA can generate more revenue by competitors.
attracting customers through Web and 8. Effective promotion strategies adopted
Mobile Reservations system. by other competitors like Emirates and
5. Un served markets (Speed Ex. courier Shaheen and Air blue.
service can be made international)
6. Better training programs
Threat of new entrant high (due to globalization of services and ease by government)
Bargaining power of buyer high (as there are a lot of airlines which serve the same services
and in better ways
Bargaining power of supplier low (as there are many available as them)
Rivalry among existing firms high (high as each one is competing for market share)
Conclusion: