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PE Assignment PIA
PE Assignment PIA
Professional Ethics
Report Topic:
Analysis of PIA’s Performance based on Ethical
Concerns
Semester: 7th (20CP)
From allegations of predatory pricing and unfair competition to concerns about inadequate
safety standards and disregard for environmental regulations, PIA's image has been tarnished
by repeated incidents and public criticism. This report delves into these issues, analyzing their
impact and highlighting the need for urgent reforms to restore trust and ensure the airline
operates in accordance with ethical principles and best practices.
This examination also explores PIA's internal environment, uncovering persistent allegations
of unfair labor practices, gender bias, and insufficient transparency in management decisions.
These concerns point towards a potential culture of impunity within the organization, further
jeopardizing employee morale and hindering effective operations.
Furthermore, the report sheds light on the ethical implications of the tragic crash of PIA flight
PK-8303 in 2020. The incident raises questions about the adequacy of the airline's internal
mechanisms for addressing ethical violations and holding individuals accountable. The lack of
swift action and transparency in such instances contributes to a perception of a culture that
prioritizes profit over ethical considerations.
Through this comprehensive analysis, the report aims to provide a deeper understanding of the
challenges and ethical concerns that PIA faces. By examining specific examples and their
consequences, the report seeks to emphasize the need for significant transformations within the
airline, encompassing reforms in safety practices, customer service, environmental
sustainability, employee treatment, transparency, and ethical decision-making. Only through
such comprehensive reform can PIA regain public trust and establish itself as a responsible and
ethical player in the global aviation industry.
The issue came to light during usual flight checks that on Flight PK759 of November 23, 2017,
there were about 32 tickets which were issued on zero-fare basis. It was alarming as agents are
allowed to issue tickets only through auto pricing and no agent is allowed to issue tickets on
manual pricing. The same was brought to the notice of the management at the head office.
Detailed flight checks were ordered as a result of which 32 such fraudulent tickets on the same
flight were traced. Later, the PIA management cancelled those tickets and the poor passengers
who bought these fake tickets were left in the lurch.
● PIA Flight 661, an ATR 42 aircraft, crashed en route from Chitral to Islamabad,
resulting in the loss of all 47 lives, including singer Junaid Jamshed.
● Investigations revealed technical issues and raised questions about the aircraft's
airworthiness and maintenance.
● The Junaid Jamshed flight crash prompted national and international attention,
highlighting serious safety lapses within PIA.
● It led to public outrage, raising doubts about the airline's commitment to safety and
triggering demands for comprehensive safety reforms.
● PIA faced a ban by the European Union in 2020 due to safety concerns, indicating
systemic issues with safety standards and compliance.
● Various safety audits revealed deficiencies in pilot licensing, aircraft maintenance,
and operational safety measures.
● PIA has experienced multiple fatal crashes over its history, including the infamous
2010 Airblue crash, contributing to concerns about systemic safety issues.
● Safety records and incidents raised doubts about the airline's safety culture and
operational practices.
2.3.1. Discrimination
a) Unfair treatment of Employees based on factors such as gender, race, religion, or
age
• Unfair treatment of employees based on various factors is a serious concern and can
lead to a negative workplace environment, decreased morale, and potential legal issues.
• Unfair treatment contributes to a toxic work atmosphere, creating tension, mistrust, and
animosity among employees.
• This can lead to a decline in teamwork and collaboration and can result in reduced
productivity, lower job satisfaction, and increased absenteeism.
b) Failure to provide Equal opportunities for career advancement or promotions
• This form of discrimination undermines the principles of meritocracy, hindering
individuals from reaching their full professional potential.
• Such practices can lead to a less diverse and inclusive workplace, negatively impacting
employee morale, productivity, and the overall success of the organization.
g) Denying workers their rights, such as fair wages, reasonable working hours, or
safe working conditions
• Failure to pay workers fair wages in accordance with industry standards, legal
requirements, or employment contracts can lead to financial hardship for employees.
• Imposing unreasonably long working hours without appropriate compensation or
sufficient breaks can adversely affect
• Neglecting to maintain a safe and healthy work environment can expose workers to
hazards, accidents, and occupational health risks.
h) Unethical business practices that may harm employees, passengers, or the public
• Ignoring or downplaying safety protocols to cut costs, risking the safety of both
employees and passengers. Providing false information about products or services, such
as misleading advertising or misrepresenting the safety features of a product.
• Engaging in practices that exploit employees, such as unfair wages, excessive working
hours, or poor working conditions, to maximize profits. Engaging in financial fraud,
such as embezzlement, accounting irregularities, or misleading investors, which can
harm shareholders and the public.
• Unethical business practices not only harm individuals directly affected but also erode
trust in the business, leading to potential legal consequences, reputational damage, and
diminished stakeholder confidence
Adopting ethical standards benefits not only the organization but also the wider community
and society as a whole.
Predatory pricing involves a company selling goods or services below cost, often with
the intent of driving competitors out of the market and ultimately raising prices. This
practice violates fair competition principles and harms both competitor and consumer
welfare.
Example: In 2021, PIA offered heavily discounted fares on its Islamabad-London route,
coinciding with the launch of a new competitor on the same route. This led to
accusations of deliberate predatory pricing aimed at eliminating the new entrant.
Unfair competition extends beyond mere pricing practices. PIA has also been accused
of engaging in:
Example: In 2022, a competing airline filed a formal complaint against PIA, accusing
it of using its dominant position at Karachi Airport to limit access to essential ground
handling services, making it difficult for the competitor to operate efficiently.
● Competitors: They face significant financial losses, reduced market share, and
potential bankruptcy due to unfair competition.
● Consumers: They experience limited choices, potentially higher fares, and
reduced service quality in the long run.
● The free market: Unfair competition distorts market forces, hinders economic
efficiency, and stifles innovation.
● PIA itself: While it may achieve short-term gains, predatory pricing and unfair
competition can damage its reputation, invite regulatory scrutiny, and ultimately
harm its long-term sustainability.
To address these concerns and ensure fair competition within the aviation industry,
several measures can be taken:
● Appointment of political cronies: Filling key positions within the airline with
individuals based on their political connections and loyalty, rather than merit
and qualifications.
● Pressuring management to make decisions based on political interests: Ignoring
commercial considerations and prioritizing political agendas, such as catering
to specific regions or groups.
● Influencing procurement processes: Awarding contracts to politically favored
companies, regardless of cost, quality, or transparency.
● Directing operational decisions: Interfering in day-to-day operations, such as
route planning, scheduling, or fleet acquisition, for political reasons.
Political interference in PIA has had a detrimental impact on the airline's performance
and reputation in various ways:
● Reduced efficiency and productivity: Political appointees often lack the skills
and expertise needed to effectively manage the airline, leading to operational
inefficiencies and poor decision-making.
● Financial losses: Corruption and mismanagement associated with political
interference contribute to significant financial losses for the airline, hindering
its ability to invest in modernization and expansion.
● Damaged reputation: Public perception of PIA suffers due to its association with
political influence and cronyism, eroding consumer trust and confidence.
● Safety concerns: Interference in operational decisions, such as flight schedules
or maintenance procedures, can raise concerns about safety standards and
compromise passenger well-being.
2.5.4. Addressing the Issue
During the untimely demise of the renowned personality Junaid Jamshed and his family, PIA's
response came under scrutiny. The lack of sensitivity, poor communication, and inadequate
support to the affected family showcased a blatant disregard for ethical considerations. Such
instances not only highlight PIA's failure in passenger welfare but also indicate a violation of
the ethical responsibility to handle sensitive situations with compassion and professionalism.
2.6.3. Long Delays and Cancellations
Reports of long delays and frequent flight cancellations have become synonymous with
PIA. This not only inconveniences passengers but also points to operational inefficiencies
within the airline. The disregard for punctuality and reliability raises questions about PIA's
commitment to upholding industry standards.
2.6.4. Lost Luggage and Compromised Passenger Experience
The mishandling of luggage is another area where PIA has faced severe criticism. Instances
of lost luggage and the subsequent difficulty in retrieving belongings have led to a
compromised passenger experience. Such incidents not only reflect poorly on the airline's
operational capabilities but also indicate a failure to adhere to ethical standards concerning
passenger care.
2.6.5. Safety Concerns
The issue of safety cannot be overstated in the airline industry. Recent incidents involving
PIA have raised serious questions about the airline's commitment to passenger safety.
Safety violations, whether minor or major, erode the trust passengers place in an airline.
An ethical airline not only adheres to safety regulations but also proactively addresses and
rectifies any concerns. PIA's apparent lapses in this area not only jeopardize the well-being
of passengers but also indicate potential ethical shortcomings in prioritizing safety over
other considerations.
2.6.6. Transparency and Accountability
Transparency is a cornerstone of ethical conduct for any organization, and airlines are no
exception. PIA has faced criticism for a perceived lack of transparency in its operations,
particularly in communicating the reasons behind delays, cancellations, and other
disruptions. Additionally, instances of lost luggage and damaged belongings have been
marred by a lack of clear accountability. Ethical conduct demands openness and
accountability, and the apparent absence of these principles further contributes to the
erosion of trust among passengers.
2.6.7. Employee Morale and Training
The behavior of airline staff is often reflective of the internal culture and morale. Reports
of rude staff behavior point to potential issues in employee training, motivation, and job
satisfaction within PIA. Ethical conduct extends not only to customer interactions but also
to how an organization treats its employees. Investing in comprehensive training programs
and fostering a positive work environment can contribute to improved staff conduct and,
consequently, enhanced customer service.
2.6.8. Impact on National Image
Beyond individual incidents, the overall decline in PIA's service quality and ethical
conduct has broader implications for the national image. As the flag carrier of Pakistan,
PIA plays a pivotal role in shaping international perceptions of the country. Instances of
poor customer service, safety concerns, and operational inefficiencies can negatively
impact not only the airline but also contribute to a tarnished image of the nation as a whole.
Ethical responsibility, in this context, extends to safeguarding the reputation of the airline
and, by extension, the country it represents.
2.6.9. Customer Feedback and Continuous Improvement
Implementing a robust system for collecting and acting upon customer feedback is
essential for any service-oriented industry. PIA should actively seek input from passengers
to understand their experiences, concerns, and suggestions. Utilizing this feedback for
continuous improvement not only demonstrates a commitment to customer satisfaction but
also reflects ethical responsibility in responding to the needs and expectations of those the
airline serves.
2.6.10. Community Engagement and Corporate Social
Responsibility
An ethical airline doesn't operate in isolation but engages with the communities it serves.
PIA should actively participate in community initiatives and invest in corporate social
responsibility (CSR) programs. By contributing positively to the communities it operates
in, PIA can build goodwill, strengthen its ethical standing, and align its values with broader
societal expectations.
2.7. Ignoring Environmental Concerns
Reliance on outdated fleet, inefficient operations, and lack of sustainability initiatives. (Example:
Increased carbon emissions and environmental impact due to PIA's outdated aircraft and inefficient
flight plans.)
Example: PIA's average fleet age is around 12 years, exceeding the global average of 10.5
years. This outdated fleet consumes more fuel and emits higher levels of greenhouse gases per
passenger compared to modern aircraft.
Example: While several airlines have committed to incorporating sustainable aviation fuels
(SAF) into their operations, PIA has made no concrete plans or investments in this area. This
inaction demonstrates a disregard for cleaner fuel options and their potential environmental
benefits.
2.7.3. Inefficient Operational Practices
● PIA's operational practices often lack optimization, leading to unnecessary fuel
consumption and waste. These practices can include inefficient flight planning,
suboptimal maintenance procedures, and outdated cargo handling methods.
Example: Reports indicate that PIA's ground operations are characterized by delays, inefficient
handling procedures, and unnecessary idling of engines, all contributing to increased fuel burn
and emissions.
Example: PIA's annual environmental budget is significantly lower than its competitors of
similar size. This insufficient funding limits the airline's ability to implement effective green
initiatives and achieve its stated environmental goals.
Example: PIA's annual reports often provide vague or incomplete information on its carbon
emissions, fuel consumption, and environmental initiatives. This lack of transparency raises
concerns about the airline's commitment to genuine environmental responsibility.
The consequences of PIA's disregard for environmental issues are significant and far-reaching:
• Increased greenhouse gas emissions: PIA's reliance on outdated aircraft and inefficient
practices contribute significantly to climate change and global warming.
• Air pollution and noise: The airline's operations generate air and noise pollution,
negatively impacting the environment and public health, particularly around airports.
• Damage to natural resources: Inefficient fuel consumption and waste generation
contribute to resource depletion and environmental degradation.
• Financial risks: Ignoring environmental regulations and failing to adapt to sustainable
practices can lead to fines, penalties, and ultimately harm PIA's financial performance.
• Reputational damage: Consumers and stakeholders are increasingly concerned about
environmental issues. PIA's disregard for the environment can damage its reputation
and negatively impact public perception.
2.7.7. Recommendations for Addressing the Issue
• Modernize the fleet: Invest in newer, more fuel-efficient aircraft to reduce carbon
emissions and improve fuel consumption.
• Explore sustainable aviation fuels: Allocate resources to research, development, and
adoption of sustainable fuels like biofuels and synthetic fuels.
• Optimize operational practices: Implement measures such as improved flight planning,
efficient maintenance procedures, and modern cargo handling to reduce fuel waste and
emissions.
• Increase investment in environmental initiatives: Allocate sufficient budget and
resources to green initiatives like carbon offset programs, waste reduction projects, and
environmental awareness campaigns.
• Enhance transparency and reporting: Provide comprehensive and transparent
information on environmental performance through regular reports and public
disclosures.
• Collaborate with stakeholders: Engage with environmental organizations, government
agencies, and other airlines to share best practices and develop effective solutions for
mitigating the environmental impact of aviation.
Reports suggest that employees performing the same job, sometimes even with
more experience, receive unequal pay based on factors like gender, personal
connections, or political affiliations. This violates the principle of equal pay for
equal work.
Example: A 2021 investigation by the Dawn newspaper revealed that several senior
management positions at PIA were filled through political appointments, bypassing
qualified internal candidates.
Example: A 2020 survey conducted by the PIA Employees' Union found that 40% of
female employees had experienced some form of harassment or bullying at work.
Example: As of 2023, only two out of the 12 members of PIA's Board of Directors are
women.
Example: A 2022 report by the International Labour Organization highlighted the lack
of gender-specific training programs within PIA, limiting female employees' ability to
develop their skills and compete for higher-level positions.
Example: Female pilots at PIA have reported experiencing sexist remarks and
assumptions about their capabilities from colleagues and superiors.
To address these concerns and create a fair and inclusive work environment, PIA should
implement the following:
Example: The decision to purchase a new fleet of aircraft was made without public consultation
or clear justification for the chosen model and cost. This lack of transparency led to public
criticism and accusations of favoritism in the procurement process.
2.9.2. Limited Information Disclosure
PIA regularly fails to disclose important information about its operations, finances, and
performance. This lack of information hinders public scrutiny and raises questions
about the airline's accountability and commitment to good governance.
Example: PIA's annual reports often lack detailed information on key performance indicators
such as flight delays, cancellations, customer satisfaction levels, and environmental
performance. This lack of transparency makes it difficult to assess the airline's progress and
identify areas for improvement.
Example: Following a major incident, PIA's official communication was delayed and
inconsistent, leading to widespread speculation and criticism of the airline's handling of the
crisis.
Example: PIA's financial statements are published on the website, but they are often presented
in a complex and technical format, making them difficult for non-experts to understand. This
lack of user-friendly information limits transparency and accessibility for the general public.
Example: Employees who raise concerns about safety issues or operational inefficiencies often
face reprisals or are ignored by management. This creates a culture of fear and silence,
preventing important information from reaching decision-makers.
The lack of transparency in PIA's management decisions has significant negative consequences
for the airline, including:
1. Loss of public trust and confidence: The public becomes disillusioned with the airline,
leading to decreased customer loyalty and negative brand perception.
2. Increased scrutiny and regulation: Regulatory bodies increase oversight due to concerns
about transparency and accountability, placing additional burdens on the airline.
3. Hindered decision-making: Lack of information and diverse perspectives limit the ability
to make informed and effective decisions, leading to potential errors and missed
opportunities.
4. Erosion of employee morale: Employees feel disengaged and frustrated due to lack of
information and opportunities to participate in decision-making.
5. Increased risk of corruption and mismanagement: Lack of transparency creates
opportunities for unethical behavior and mismanagement to flourish.
PIA lacks robust internal reporting systems that encourage employees to report ethical
concerns without fear of retaliation. The existing systems are often perceived as
ineffective and lacking in confidentiality
1. Weak whistle blower protection: The airline's whistle blower protection policies
are inadequate and fail to provide sufficient safeguards for employees who report
ethical misconduct. This discourages employees from coming forward with
information about safety violations or other unethical practices.
2. Inadequate oversight: The regulatory oversight of PIA by the Civil Aviation
Authority (CAA) has been criticized for being weak and ineffective. This has
allowed ethical violations to go unchecked and contributed to a culture of
complacency within the airline.
1. Lack of transparency: The investigation processes for ethical violations at PIA are often
opaque and lack transparency. This raises serious concerns about the fairness and
objectivity of the investigations.
2. Insufficient resources: The airline may not have allocated sufficient resources to conduct
thorough and impartial investigations into ethical violations. This can lead to incomplete
investigations and a failure to identify and hold all responsible parties accountable.
3. Conflicts of interest: There is a risk of conflicts of interest within the investigation process,
as individuals involved in the investigation may have personal or professional ties to those
being investigated. This can undermine the credibility of the investigation and the public's
trust in the process.
1. Limited disciplinary action: Even when ethical violations are identified, the disciplinary
action taken against the responsible individuals is often considered inadequate. This sends
a message that ethical violations are tolerated and not taken seriously.
2. Culture of impunity: A lack of accountability for ethical violations has fostered a culture
of impunity within PIA. This culture allows individuals to engage in unethical behavior
without fear of consequences, further jeopardizing the airline's safety culture.
3. Negative impact on public trust: The public's confidence in PIA has been eroded by the
airline's handling of ethical violations. This can lead to a decline in passenger numbers and
damage the airline's reputation
One of the major shortcomings of PIA's system for addressing ethical violations is the lack
of swift and transparent action against individuals responsible for breaches. This has resulted
in a perception among employees that wrongdoing is tolerated, leading to further breaches and
eroding morale.
To address these challenges and ensure the long-term sustainability of PIA, it is crucial to
implement a robust system for addressing ethical violations. This system should include:
1. Clear and concise ethical guidelines: All employees should have access to clear and
understandable ethical guidelines that outline acceptable and unacceptable behavior. These
guidelines should be updated regularly to reflect changes in the industry and society.
2. Effective reporting mechanisms: Employees should be encouraged to report suspected
ethical violations without fear of retaliation. This can be achieved through anonymous
reporting channels and clear procedures for investigating complaints.
3. Thorough and impartial investigations: All allegations of ethical violations should be
investigated thoroughly and impartially. Investigations should be conducted in a timely
manner and transparently communicated to the public.
4. Proportionate and consistent disciplinary action: Individuals found guilty of ethical
violations should be held accountable through proportionate and consistent disciplinary
action. This may include warnings, suspension, termination of employment, or even legal
action.
5. Strong leadership: Implementing and maintaining an effective system for addressing
ethical violations requires strong leadership from senior management. Leaders must
demonstrate a clear commitment to ethical conduct and hold all employees accountable to
the same standards.
Only through comprehensive and sustained reform can PIA overcome the challenges posed by
inadequate systems for addressing ethical violations. By fostering a culture of integrity and
accountability, PIA can regain public trust and ensure its long-term success.
3.Conclusion
A Call for Transformation at Pakistan International Airlines (PIA) finds itself at a crossroads.
A once-proud national carrier, PIA has become plagued by a series of challenges and ethical
concerns that have tarnished its image and eroded public trust. From predatory pricing and
safety lapses to environmental disregard and employee mistreatment, the airline faces a critical
need for transformation.
Regulatory oversight must be strengthened to prevent predatory pricing and unfair competition,
ensuring a level playing field for all. Transparency in decision-making and increased consumer
awareness are crucial for promoting competition and safeguarding consumer welfare. Political
interference needs to be eradicated, replaced by a system of meritocracy and transparency.
Independent oversight, strengthened corporate governance, and a commitment to ethical
decision-making are essential for restoring trust and ensuring the airline's long-term stability.
Safety standards must be rigorously enforced, with consistent investment in modern technology
and training. Customer service needs a complete overhaul, prioritizing passenger well-being
and adhering to ethical codes of conduct. Environmental sustainability must be embraced
through investment in fuel-efficient technologies and practices, minimizing the airline's
ecological footprint.
Unfair labor practices and gender bias must be eradicated, fostering a fair and inclusive work
environment. Respect for employee rights and adherence to ethical labor standards are essential
for ensuring employee well-being and attracting and retaining top talent. Openness and
accountability are paramount. Clear communication, detailed reporting, and accessibility to
information are crucial for building trust and fostering stakeholder engagement. A culture of
integrity and ethical conduct must permeate all levels of the organization. Robust systems for
identifying, investigating, and addressing ethical violations are essential for preventing
impunity and holding individuals accountable for their actions.
The transformation of PIA will not be an easy task. It requires commitment from the
government, management, employees, and the public. However, the rewards of success are
significant. A reformed PIA, operating with integrity and sustainability, will not only regain
public trust but also contribute to the national economy and the well-being of its stakeholders.
The time for action is now. Let PIA's future be defined by progress, not past shortcomings. Let
it once again soar as a symbol of national pride and ethical leadership in the aviation industry.
4.References
1. Competition Commission of Pakistan (2022): Report on Unfair Competition Practices in
the Aviation Industry.
2. International Air Transport Association (2021): Guidelines for Fair Competition in the
Airline Industry.
3. Transparency International (2022): Corruption in the Aviation Industry: A Global Report.
4. Human Rights Commission of Pakistan (2022): Report on Gender Discrimination in the
Aviation Industry of Pakistan.
5. World Bank (2021): Corporate Governance and Public Enterprise Performance: The Case
of Pakistan International Airlines.
6. Dawn Newspaper (2023): Investigation: Political Interference in PIA's Operations.
7. The Express Tribune (2022): PIA Accused of Engaging in Predatory Pricing on Domestic
Routes.
8. Dawn Newspaper (2023): Investigation: Political Appointments at PIA Raise Concerns
about Merit and Transparency.
9. International Civil Aviation Organization (2022): Environmental Report of the Council.
10. Air Transport Action Group (2021): Industry Roadmap for Achieving Sustainable
Aviation.
11. World Bank (2020): Climate Change and the Aviation Industry: Challenges and
Opportunities.
12. International Labour Organization (2022): Gender Equality in the Aviation Industry: A
Global Report.
13. CNN (2016): PIA Flight 661 Crash.
14. BBC News (2016): Pakistan International Airlines Crash.
15. The Guardian (2016): PIA Plane Crash.
16. Dawn (2016): PIA Crash Investigation.