Case Study of PIA

By

Ahmad Sabur Hassan (160418)

Muhammad Wajih Ul Hassan (160422)
Muhammad Amad Ul Haq (160424)

BEME F-16(B)
 History
• PIA was built up in 23 October 1946 as Orient Airways.

• In June 1946, the nation's founder Muhammad Ali Jinnah realized the
requirement for a banner transporter

• Pakistan's administration set up the Pakistan International Airlines

Corporation (PIA)
 Golden Time
• PIA was one of the few things we could talk about with our heads held high.

• In mid 1980s PIA helped United Arab Emirates (UAE) to set up their new airline
Emirates.

• PIA selected its new uniforms through an open competition. The winning entry
was designed by Sir Hardy Amies, the designer of Her Majesty, Queen Elizabeth II.
 How Things Went Wrong
• Various Accidents.

• Delay in flights

• deterioration in service and quality

• One of the reasons for the decline was the wrong choice of aircraft.
 Issues
• Considering rupee devaluation over a time PIA foreign currency sale
indicate reduction in revenues of PIA.

• Cosmetic things like change of color/logo do no attract passenger rather

added cost burden.

• Posting/transfer/promotion is given on seniority and political basis rather

on the performance of a person.
 Impact of Issues on PIA
• PIA has a lot of 42 billion debts.

• 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.

• With the decline in service and quality, PIA got trapped into endless
scandals and losses, not just in dollar value but in goodwill and reputation.
 Engineering Management Analysis
• Strong infrastructure so TQM is more effective

• “Total Organizational” involvement will help PIA overcome their financial loss

• Use of internet to interlink with passengers and inform them about any delays or
issues.

• Employees to be trained to talk politely with customers.

• Technical knowledge must be improved.

• Discard old fleet and include new aircrafts.

 Way Forward
• PIA engineering department should be upgraded

• Promotion should be given on performance basis rather than on seniority.

• Higher tax (FED) be imposed and collected on tickets issued by international airlines for
sectors beyond their home base.

• The CEO and Board members should be appointed by a committee of acclaimed

professionals.

• The retirement age of cabin crew should be reduced to 40-45 years so that young, smart,
educated and well-groomed faces can be the new faces of PIA services inside the cabin.