TOTAL QUALITY

MANAGEMENT

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 October 1

Total Quality
Management 2013
SUBMITTED BY:

MAHA JAMAL

SAIRA IQBAL

AFSHEEN KHAN

AREEBA IMTIAZ

MEHWISH ALMAS

SUBMITTED TO: MISS UZMA

CLASS & SEC: BBA II- B

SUBMITTED DATE 1st OCT, 2013

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 Article No: 1

Thursday, 22 Mar 2012 9:35 pm

NIMRAH AMJAD

Karachi.

PIA is facing serious problems nowadays. Flight delays and cancellations have become the norm
rather than the exception. The Pakistan International Airlines is also suffering from severe
financial crisis.

It is, in fact, passing through a critical phase because of poor management, lack of maintenance,
corruption and financial issues. There are complaints of terrible service, long delayed flights,
emergency crash landings, cancellation of flights, and shortage of planes. These issues create
frustration among the passengers. They feel fear and life risk while travelling through PIA.

PIA has, in all, 39 aircrafts in its fleet. A number of aircrafts have been grounded due to
shortage of spare parts or overhauling. Latest news report claimed that PIA had grounded 18
planes. A recent PIA flight PK 303, from Lahore to Karachi, was 6 hours delayed on 15 March,
2012. The bad governance, poor performance and corruption are the major causes of its failure.

Unfortunately, PIA is functioning with costs higher than returns. The airline charges are
enormously high for both domestic and international flights. PIA claims that increase in oil
prices and devaluation of Pakistani currency are the major reasons behind its deficit.

PIA in the past was known all over the world for its excellent performance and superior quality.
That was the golden period for PIA. Now PIA is going in loss. A couple of months ago, rumours
circulated that the increased frequency of emergency landings by PIA were being orchestrated
to tarnish its image and reputation. Investigation should be carried out to find out the truth.

PIA should give primary importance to the safety of the passengers and make efforts to avoid
any untoward situation. Several untoward incidents have occurred in the last decade. It is
necessary to tackle such incidents seriously to minimize the losses.

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 Article No: 2
PIA CRISIS:

Monday, 13th January 2013 11:35 pm

Muhammad Daheem

Karachi.

Saturday, December 03, 2011 - 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 is a big organization with more than 18000 employees. PIA was known all over the
world for its excellent performance and superior quality. That was the golden period for PIA.
But now it has lost his luster.

Flight delays and cancellations have become the norm rather than the exception. Naturally this
situation cannot be tolerated for unlimited period. PIA will have to overpower its weaknesses. It
has failed to resolve issues of its organization. The average ratio of staff should not exceed 100
per aircraft while PIA enjoys more than 400 employees per aircraft. It is overpopulated and
needs to cut its coat according to its cloth. It needs some hard decisions by the administration
to run the system smoothly. Pakistan International Airlines should give primary importance to
the safety of the passengers and make efforts to avoid any untoward situation. Several

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untoward incidents occurred in PIA in the last decade. It is necessary to tackle with such
incidents seriously to minimize the losses. The passengers should not suffer in its custody.

PIA has problem of maintenance and repairs. It is stated that tender for the maintenance of the
aircrafts has been given to a company that does not have international reputation. It is further
stated that PIA tends to sublet dubious and substandard companies with no international
credibility and little experience for maintaining its fleet. Saleem Irshad, retired engineer, claims
that high-ups of PIA have financial stake in these small and substandard companies. The
obscure vendors, hired by PIA, are one of the major problems. They are just like risky shots in
cricket. The airline that once assisted other airlines is now losing its control over itself. It’s high
time the government restructured PIA. It should discard its old and obsolete fleet of aircrafts
and have new one to improve its overall performance.

Sagging seats and soggy seat covers, messy floor carpets, dirty and gritty outlook,
malfunctioning toilet doors, rattling planes and failing equipment need refurbishment, better
maintenance and planning. It is necessary for PIA administration to put on considerable effort
to avoid anxiety of the travelers. It is pertinent to mention that one of PIA aircrafts was
inspected at Paris Airport by the inspectors of Safety Assessment of Foreign Aircraft (SAFA)
while en route from Paris to Lahore. They detected several snags in the aircraft. The
organization warned PIA to overpower the shortcomings or face the consequences. The team
detected fuel leakage from one of the engines of Airbus A-310. In consequence passengers
were evacuated in emergency.

Another aircraft of PIA had been detained at a French airport owing to safety reasons. The
plane was returning home from Milan via Paris. The European aviation inspectors checked it at
Charles de Gualle Airport, directed the crew to off-load the passengers and then detained the
aircraft. The team pinpointed 39 snags including fuel leakage from Airbus A-310. The following
faults were found by the inspecting team: “one panel right of NLG door bent; right fairing (inlet)
cracked and bent; one latch on each engine closed by lock wire; fuel leakage on the Engine 2
pylon at the end of refueling; hydraulic leak from steering actuator; fuel leakage from
the Engine 1 pylon, both wing root and horizontal stabilizer; on right wing root external one
thermal protector tightened up with locking wire; engine No 2 inboard fire seal damaged;
temporary repair performed on engine No 1 fire seal outboard; hydraulic seepage on wheel No
1 brake assembly” etc. It is a long list of snags showing the “real efficiency” of the PIA
administration. It is stated that crew failed “to manage a quick and correct emergency
evacuation” of the aircraft. PIA should assure full implementation of safety standards in light of
inspection report by SAFA inspectors.

Unfortunately PIA is functioning with costs higher than returns. PIA claims that increase in oil
prices and devaluation of Pakistani currency are the major reasons behind its deficit. It needs
remarkable effort and money to improve its ranking in the world airlines.
A four-day strike by Pakistan International Airlines employees caused huge financial loss.

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 Article No: 3
PIA Needs Attention

Saturday, 18th June, 2012

Bismah Anzar,
Karachi

There was a time when PIA indeed was an airline that people could look forward to as a good
alternative to the high prices of private airlines. But like almost everything of our country’s
glorious possessions this airline could not be an exception due our corrupt former rulers. It is
said that high fuel prices were also responsible for the decline and near bankruptcy but this is a
small factor to be blamed for such a large issue.

Though it is acceptable that it has recently faced global economic recession but the real
problem is with the people running or rather ruining it. Every airline of the world has set some
standards as to which air craft’s will stay in their fleet and which need to be grounded. Here the
case is different, the officials of PIA totally neglect the vital area of maintenance of crafts as air
craft’s are the source that will generate them money, but they totally ignored their condition
and now the situation is that one after the other their air crafts are becoming useless thus
disturbing , delaying and canceling flights that is not only irritating and reducing the customers
but also causing serious blows to the existence of the airline itself. Even after being imposed
bans by foreign countries the PIA administration could not open eyes and give attention to it. It
is also feared that a plan has been chalked out to replace this airline with a new one but even if
this is not true, the truth is that PIA indeed needs attention. If we will not care about our
country’s pride no one is going help out in future then.

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 Acknowledgment

We wish to express our sincere appreciation to those people who have

contributed either directly or indirectly to this report. We wish to thank
to my teacher MISS UZMA gratefully for her invaluable guidance in
making this report we also gratefully acknowledge my all group
members who work on the value of being organize and corporate a lot
on every step of making this report possible.

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 Table of Contents:

Executive summary……………………………………………………………………………………………………….……..4

Introduction…………………………………………………………………………………………………………………………..5

History………………………………………………………………………………………………………………………………..…5-6

Organizational chart……………………………………………………………………………………………………………...7

Major problems of PIA: …………………………………………………………………………………………………………8-19

Financial crises…………………………………………………………………………………………………………9-10
Flight delays……………………………………………………………………………………………………………..10-11
Poor customer service………………………………………………….………………………………………….11-12
High ticket Prices………………………………………………………………………………………………………12-13
Mishaps…………………………………………………………………………………………………………………….13-14
Corruption…………………………………………………………………………………………………………………14-15
Over recruitment………………………………………………………………………………………………………15
Outdated technology…………………………………………………………………………………………………16
Maintenance problem……………………………………………………………………………………………….17-18
Poor management…………………………………………………………………………………………………….18-19
Conclusion……………………………………………………………………………………….………………………..20
Recommendation ……………………………………………………………………………………………….....21
Reference………………………………………………………………………………………………………………..22

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 Executive Summary

The importance of airline has been increased because of globalization where interaction of one
country with other accomplished through airline. We have an honor to work for our project
work about Airline. This report includes the information about Pakistan International Airline,
the introduction of the PIA and the problems which are being faced by national flag carrier. The
purpose of selecting this topic is to know the reasons that why PIA an airline which was one of
the best airline of the world and the strong pillar of Pakistan’s economy, why it is facing loss
from many years? The passengers are continuously switching to the other airlines and PIA is
consistently going down, what is the reason behind this. In this report we developed some
strategies to overcome the problems that PIA facing that help PIA in recapturing the lost
passengers.

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Pakistan International Airline

Introduction:
Air transport is given a lot of importance in the world. In Pakistan too, it has its importance. It is
essential to have air communication for maintaining and improving relations with other
countries.

Pakistan International Airlines Cooperation, commonly known as PIA is the flag carrier airline of
Pakistan. The airline which its head office on the grounds of Jinnah International Airport in
Karachi, is one of the largest airline in Asia, operating scheduled services to 24 domestic
destinations and 39 International destinations in 25 countries across Asia, Europe and North
America . Its main bases are Karachi, Lahore and Islamabad/ Rawalpindi.

The airline secondary bases include Peshawar, Faisalabad, Quetta, Sialkot and Multan, from
which it connects the metropolitan’s cities with the main bases, the Middle East and the Far
East. The airline is owned by the Government of Pakistan (87%) and other shareholders (13%).

History:
BACKGROUND
When Pakistan was founded in 1947 it comprised two territories on either side of the expanse
of India. It was in this unusual circumstance that Pakistan International was formed. Despite
wars and economic trouble, the carrier survived to grow and prosper. Today it maintains a
sizeable international route network, in addition to its services closer to home; with a modern
and expanding flee.

PIA ESTABLISHED IN 1951

After the independence of the Pakistan 1947, Pakistan decided in 1951 that it needed a
national flag carrier airline; the government of the country accordingly established Pakistan
International Airlines (PIA), in this role, and on 25 May ordered three examples of the Lockheed
L-1049C Super Constellation four-engine airliner as the new operator's initial equipment. PIA

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flew its first service with the Super Constellation on 07 June 1954 on the route linking Karachi
and Dacca (now Dhaka), which were the main cities of the country's western and eastern
halves, of which the latter is now Bangladesh.

On 1 February 1955 the airline flew its first international service, between Karachi and London
via Cairo

HISTORY OF PIA THAT INTRODUCED THE THING FIRST TIME IN

ASAIN COUNTRYIES:
PIA was the first airline from an Asian land country and the first airline from a Muslim country
to fly the Super Constellation. The first Asian airline to operate a jet aircraft PIA set up
Pakistan's first planetarium at Karachi. The first airline in South Asia to introduce auto-ticketing
facility. The first airline to introduce a second route to People's Republic of China over the
mighty Karakoram Mountains. First airline in South Asia to offer the facility of seat reservation
through mobile phone.

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Organizational Chart of PIA:

SP assistant to Chairman Secretary

chairman (PIA) (PIA)

Director Director
Manager
precision coordination
engineering
director to MD

Deputy
SVP engg, managing SVP monitoring& SVP human
director appraisals resource &
administration

SVP flight SVP

SVP information SVP
operations Finance technology procurement
logistics

SVP flight Director

safety finance SVP quality
SVP sales
assurance

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Major Problems of PIA

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Major Problems Which Are Being
Faced By PIA:
PIA is getting losses for many years. No serious efforts done to get out it from losses. During the
last year Pakistan International Airline (PIA) has stained a loss of PKR 13.4 billion ($207.5
million). Operationally it was also blacklisted by European Union during the year which hit the
bottom line along with its passengers:

Some of the major problems are following:

1. Financial Crises:
Problem:
Pakistan International Airlines, the national flag carrier, is suffering from an accumulated loss of
Rs169.921 billion from 2013 June 30.PIA facing Rs 100m loss daily. PIA is facing huge financial
loss like bankruptcy due to mismanagement, conflict of interest, massive financial
&administrative discipline and lack of lack honest & professional board of directors in the past 5
years. PIA faced loss of 38 billion in 2008. Financial condition of PIA is so worst that it has not
enough money to purchase fuel as the cost of fuel is 54% of the cost of PIA. The report of2008
said cheques issued to employees’ account have been bounced due to non-availability of cash.
Although PIA doesn’t have money to pay salaries to its employees but it has given vehicles of
billion rupees to its officers but not have not enough money to make full payment for such
luxuries.

Solution:
First review its management problems and try to solve them.
Honest employee and professional.
Enough funds.

Strategies:

The PIA must have its strong infrastructure that made the TQM more effective if infrastructure
is well developed after implementing of TQM is bound to give revolutionary growth as well as
performance. The “total organizational” involvement will help the PIA to overcome their
financial lose, by total involvement t of employee and top manger that build trust and
confidence and united force to achieve organizational goal. Empowering employee give

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continuous improvement, TQI increase competitive advantage and reduction in wastage and
save the man power and fuel etc. and apart from it employee and customer get satisfied, in
Result Company will get remarkable profit.

For making profit PIA should reduce their expenses like facilities such as air tickets allowed to
the employees including Chairman/MD and their families should be stopped for five years. Only
official visits are allowed that too in economy class. To make the company profitable the
government should sell oil to aviation companies without charging sales tax and other taxes on
the fuel, which will immediately reduce the amount of money being spent on oil. For a limited
time period. Once the airlines show a positive cash flow, then the government can start
collecting taxes again.

2. Flight Delays:
Problem:
Flight delays and cancellations have become the norm rather than the exception. Naturally this
situation cannot be tolerated for unlimited period.

Mismanagement of staff is a big issue of flight delay. Many times staff is unaware or do not
provide required information to travelers due to which travelers have to wait for hours.

The major reason of flight delay is carelessness of engineers due to which aircraft often get
technical faults. Infect there is no proper information given by management about whether for
caste which is also the reason of flight delay.

Solution:

Management should be proper.

Give proper information to them.
Good technologies must be there to handle the entire technical fault.
Make your customer satisfied.

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Strategies:
The PIA want to solve that problem with the help of “TQM” must have to need to build the
foundation; to build good management the every employee from top to bottom work together
and that focused on customer satisfaction, used information system or internet to interlink with
customer and all sub departments that tell about the flight delays and other problems,.
Maintain of machines of right quality, right quantity, right time and right place and must have
effective cost so they technical faults not arises ,continuous improvement process needed, and
advance technology must be there.

3. Poor Customer Services:

Problem:
The main purpose of business is to satisfy customer who are the backbone and key of success of
any organization. PIA customers are not satisfied with their services as the reasons are as
follow:

Due to lack of good facilities: food, individual TV sets, limited seats.

delay in the time schedule
ticket issues and expensive ticket price for the customers who missed the flight, no any
discount on this
no customer interaction
old machinery ,which caused delays in the schedule of flight time, need automated
machinery
Limited number of plans in respect to demand.

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Solution:

Provide customer good facilities.

Provide discount benefit to loyal customer.
Advanced machinery should be used.
Increase the number of plan.

Strategies:

The “TQM” focused on the customer satisfaction, understand the customer needs
(implied and stated need) by value added you can make your customer satisfied the
process must be efficient and as well effective, do it right first time. And quality
improvement must be there, and train the employee to talk with the customer in a
polite way.

4. High Ticket Prices:

Problem:

There is been consistent rise in fuel prices in the international market. Fuel prices have
impacted on almost every airline in the world. This has affected Pakistan international Airlines
more than any other airline due to its aged fleet. New planes are fuel efficient as compared to
old ones. In an airline normally 30-35% of expenses account for fuel expenses but in Pakistan
International Airlines this number goes to 45-50%. Due to these factors PIA has to charge more
fare to customers that’s dissatisfies the customers.

Solution:

Make new and effective plans and control the quality and make the customer satisfied.

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Strategy:
The “kaizen GEMBA” help PIA to control the quality by elimination of wastage leading that
reduced the expense of the fuel, and focused on the continuous improvement that (reduced
the high ticket price) that help the PIA to achieved the highest profit and customer satisfaction.

5. Mishaps:
Problem:
Occurring every day in PIA is just because of carelessness of management and engineers
printing a bad image of PIA . 97 % of all air accidents occur due to human error. During the last
twenty years or so , induction in PIA was not purely on merit which resulted in the decline of
the airline as a whole. Moreover , emergence of new airlines in this region offering handsome
salaries to its employees as compared to PIA resulted in the trained manpower leaving the
airline, which has created a huge vacuum of expert staff for the airline, especially in the
technical departments i.e. engineers and pilots. All these things are the root of this problem.
There have been many mishaps some are discuss below:

A loading truck collided with Pakistan International Airlines (PIA) aircraft at Kuwait airport on
Saturday causing severe damage to its engine, (Express News reported).

The runway at Muscat International Airport was closed for four hours after Pakistan
International Airlines aircraft with malfunctioning landing gear blocked the runway after
touching down.

Solution:
Today’s sophisticated aircraft is not meant to crash due to mechanical problems but also the
human error also. It only requires good maintenance and handling by trained pilots & engineer
and you also need good governance to over look these things.

Strategies:
There should be a top to bottom perfection to solve this huge problem:
Detecting the faults occurring in the aircrafts through TQM.
They should follow Japanese style of management.

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 Training should be given to make employees motivated and productive..
Hire the qualified, experienced and technical pilots.
Set proper airway routes and directions

6. Corruption
Problem:
The corrupted governance, poor performance and corruption are the major causes of its failure.
It is observe that friends of our former president are the major shareholder in PIA which results
in PIA bankruptcy.
Without the fall of PIA, Air Indus an airline like PIA cannot operate as it is pinning its hope on
PIA’s large fleet of aircraft to be bought by this company.
PIA is a fine example of failed policies, and a case of current government’s evil intentions to
make PIA a thing of past.
PIA has recently faced global economic recession but the real problem is that its people are not
running it infect they are ruining it.

Solution:
Proper management and controlling plans should be made to improve the overall
performances of PIA. It should create Goodwill among its customers.

Strategies:
Internal politics should be omitted.
Total quality recruitment.
No favoritism among employees.
Fire those who are not fruitful for the organization.
Value added services should be given to attract or retain customers.

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 Communication channels or networking should be strong to neglect propagandas
that are being played for this organization

7. Over Recruitment:

Problem:
Naturally this situation cannot be tolerated for unlimited period. PIA will have to overpower its
weaknesses. It has failed to resolve issues of its organization. The average ratio of staff should
not exceed 100 per aircraft while PIA enjoys more than 400 employees per aircraft. It is
overpopulated and needs to cut its coat according to its cloth. It needs some hard decisions by
the administration to run the system smoothly. Past three years over recruitment of people
which had suffered losses worth Rs100 billion in the same time period?

Solution:
Pakistan international airline need rightsizing. PIA should recruit that people who are
productive and focused on the organizational goal.

Strategies:
Implementation of TQM various practices successfully are positively related to HR function.
Rightsizing” of current employee should be based on “total quality recruitment” that has a zero
defect recruitment and “right first time selection”, and the employee not able to fulfill the
criteria downsizes that employees. The standard performance should totally base on the
“customer care indicator”. The PIA should downsize those employees who are appointed as
political ground because most of them are more like a burden on P.I.A expenditures as they are
getting salaries for nothing. They are not providing any kind of benefit to the organization.

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 8. Outdated Technology:

Problem:
PIA is competing with the airlines from all over the country especially with the Middle East
airlines which are coming in with heavy investment. Its competitors such as Emirates and Qatar
airways have great capital. Theses Middle East organizations are putting in newer and newer
technology and acquiring greater manpower. PIA being already in a financial crunch faces a
tough task.

Solution
Heavy investment
Great capital.
Advancement in technology
Greater manpower.

Strategies:
There should be quality control of thing and quality improvement must be there to have great
capital, the employee should drive out of the fear and consider work standard carefully and the
employee must have the skill that are required, the technological advancement come from if
the company focused on the targeted goal and reduced expenses.

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 9. Maintenance problem:
Problem:
Sagging seats and soggy seat covers, messy floor carpets, dirty and gritty outlook, malfunctioning
toilet doors, rattling planes and failing equipment need refurbishment, better maintenance and
planning.

PIA has problem of maintenance and repairs that it is not up to the mark. It is stated that
tender for the maintenance of the aircrafts has been given to a company that does not have
international reputation. It is necessary for PIA administration to put on considerable effort to
avoid anxiety of the travelers. It is pertinent to mention that one of PIA aircrafts was inspected
at Paris Airport by the inspectors of Safety Assessment of Foreign Aircraft (SAFA) while en route
from Paris to Lahore. They detected several snags in the aircraft. The organization warned PIA
to overpower the shortcomings or face the consequences. The team detected fuel leakage from
one of the engines of Airbus A-310. European Union in and out of the region due to lack of
safety regulations and maintenance. However, the ban was a temporary one and it was duly
over turned, but that wasn’t the end of issues for PIA.

PIA was, only a few years back, also not allowed to fly to some European destinations. The lack
of proper maintenance was reported as the main reason for the restriction.

The airline that once assisted other airlines is now losing its control over itself. It’s high time the
government restructured PIA. It should discard its old and obsolete fleet of aircrafts and have
new one to improve its overall performance.

Like any public corporation PIA also suffer colossal losses on account of pilferage especially in
purchases, stores and kitchen etc. Effective deterrence is required to check the leakage. Those
found involved should be dealt with severely. On this score alone organization can save huge
amount of expenditure.

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Solution:
It should discard its old and obsolete fleet of aircrafts and have new one to improve its overall
performance. • It needs proper concentration for maintenance and health concern to meet
international standards.

Strategies:
The strategy that follows over here is “5’s housekeeping”

1. cleanliness for floor carpet, seat cover, dirty and gritty outlook malfunctioning toilet it
create good working environment and elimination of accident, and decent appearance
of the organization before the guest and visitors come.
2. Orderliness: proper arrangement of equipment’s to make the work fast without wasting
the effort time and material.
3. Clarity the definite clarity about plane working or not and knows about everything and
should be clearly define.
4. Tidiness avoid the mixing of the product it will save your time and reduced the re work.
5. Discipline must be there in every organization to work effectively.

10. Poor Management:

Problem:
Poor management is also important cause for the existing situation of the organization.
Employees are not in control of management so employees do what they want and so do
managers. Some policies from management is also costing the organization, for instance,
Emirates Airline use only two employees per plane whereas in PIA. There are five Employees
per plane that means PIA is overcrowded which is definitely unnecessary, and by paying these

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additional employees it is costing a lot to the PIA. The other reason is misuse of funds; most of
the funds were used for lavishness by managements instead of using- it on the fleet to make it
considerable for the international standards.

Solution:
Proper management must be there. The management should plan to deal with this issue. The
management should redesign their business process. Implementation should be there for plans.
Proper controlling should be on regular bases.

Strategy:
For Long term achievement manager’s vision should be SMART (Specific, Measurable,
Attainable, Realistic and Time bound). Technical knowledge must be improved about the
product, process and its usages to: increase product quality Better applicability longer life of a
product Enhance customer Satisfaction Bring down cost of production to better utilization of
men, machines and material. Management should also consider 3 M’s of TQM “MURI MURA
AND MUDHA” To avoid wastage both material and time. To reduce over burdening from
people, equipment and resources. To avoid lack of standardization or uneven Should
implement Eliyahu M.Goldratt’s of MURA theory that focus on the weakness point of the
organization and then keep on strengthen on weakness to make the organization management
more powerful and effective in offering a complete solution to organizational problem. All
problems. Management should also consider Two-Way Communication so; 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.

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 Conclusion:
The final conclusion of this report is that No doubt PIA is still a strong brand name in Pakistan.
The people of Pakistan want to travel through PIA. But they say that they are compelled to
travel through other airlines because of above reasons. So it’s the time when the management
and government of Pakistan need to take some serious steps to uplifting of PIA because
Pakistan is now facing economical and inflation crises so if PIA can dependent than the day is
not far when it will start contributing in the country’s economy by adding its revenue in it. We
all hope that in the next few years

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 Recommendations:

• Needed better functioning of human resource and administration department

• Management is needed to perform it responsibility professionally. Reducing costs and trying

to achieve more market share by combining the organization.

• Marketing department must deliver in order to create a strong figure for the organization. It
must be responsible for creating more sales and getting more market share. Providing
awareness about the good characteristics of the organization. Getting information on related
field and report to the top officials.

• Coping with fuel rising prices in a way as most successful airlines are doing

• Modernizing the airline’s fleet is badly needed as well proper maintenance of the fleet is
required.

• Must take advantage of the increment in the air transportation especially towards Middle
East countries and India.

• Better and modern functioning of training and development department

• Need for accountability.

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 Reference:

http://pakobserver.net/detailnews.asp?id=128193

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/national/31-Jul-2013/mega-
crisis-hits-pakistan-international-airlines

https://www.google.com.pk/?gws_rd=cr&ei=xIJKUteBCs7n4QT2qYGwCw

http://x.dawn.com/tag/pia-crisis/

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/11-Sep-2013/pia-
can-fly-out-of-crisis-ahsan

http://dawn.com/news/1024882/chitral-people-seek-rebate-in-pia-fares

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