PROJECT TITLE

IMPACT OF GOVERNMENT POLICIES

ON AIRLINE OPERATING EFFICIENCY
 TEAM MEMBERS

2016 2017 2018 2019 2020 2021

SYEDA ASAD WAQAS

MUMAEZA SHABBIR SHAHID

F2017001088 F2017001057 F2017001095

 INTRODUCTION

• This paper2016
explores the2017
problems of2018
defining,2019 2020 and improving
understanding, 2021
operational efficiency within an airline based on government policies.
• First we consider the effects that an air carrier’s overall strategy and
geographic area of operation may have on the airline’s efficiency.
• In addition, we look at various traps that airlines can fall into when they
analyze the efficiency of their operations.
• We have tried to touch on as many government policies in coordination to
investigate their impact on operational efficiency.
LITERATURE REVIEW

For the purpose of Regulatory and Administrative

functions/oversight Aviation Division under the Secretary
2016
Aviation and2017 2018Aviation
Pakistan Civil 2019Authority
2020(PCAA)2021
under Director General Civil Aviation Authority shall have
the Executive/Administrative Authority to ensure safe,
secure, efficient, profitable, sustainable and facilitating
Aviation Sector. Efforts would be made to ensure
operations and regulatory oversight in Pakistan at par
with best international aviation practices. The ultimate
aim would be to contribute to national development
based upon the organic market growth.
 • Whether government
Research policies has an effect on
Question airlines operating
efficiency?

• Government policies
has significant and
Hypothesis positive relation with
operational efficiency
of airlines.

• Government policies
Null has no significant and
positive relation with
Hypothesis operational efficiency
of airlines.
Research Methodology, Sample Size & Population

RESEARCH METHODOLOGY
 Quantitative research methodology was used.
 Statistical analysis was conducted to look for correlation between the
variables – government policies & airline operating efficiency.

SAMPLE SIZE
 We distributed 250 questionnaires with confidence level of 95% and found
187 questionnaires in final shape to be analyzed, hence the response rate
was 74.8%.
POPULATION
 Data were collected from PIA employees after briefing them the five
selected government policies used in our research
 Variables & Measures Used
• Primary data was collected from PIA employees working at Lahore airport and in
PIA airline head office..
• A questionnaire was developed and used which consisted of two main variables
government policies and operating efficiency of airlines.
• Likert Scale was used to measure the impact of government policies where

5-STRONGLY 1-STRONGLY
4- DISAGREE 3- Neutral 2- AGREE
AGREE DISAGREE
 Procedures Used to Collect Data

• Selected employees of PIA were assigned to fill up the

questionnaire in hard form.

Minimizing Chances of Error

• Questionnaires were filled out directly by the selected employees.

• Incomplete Questionnaire were exempted.
RESULT AND DATA ANALYSIS
Factor Loading

Reliability Statistics

Correlation Statistics

Regression Statistics
 FACTOR LOADING
Table 1: Factor Loading Rotated Component Matrix

Component

GP1
Variables 1
.783
2
 
KMO
GP2 .729   KMO Kaiser Meyer-Olkin must exceed
GP3
GP4
.583  
0.50 for further analysis, similarly, KMO
.671  
GP5
results in our study indicates that all the
.784  
GP6
values exceeded the minimum required
.574  
OE1   .814
value i.e. 0.5. which mean that this value
OE2   .799 is appropriate for factor analysis
OE3   .773

GP = government policies, OE = operating efficiency

 REALIABILITY STATISTICS

Cronbach's
Cronbach’s alpha
Table 2: Reliability Statistics

Variables Alpha No of Items Cronbach’s alpha. High alpha coefficients

GP .814 6 (see Table 2) of all the scales indicates that
OE .755 3 the measures used were reliable enough as
the value is greater than 0.70.
 CORELATION STATS

Table3: Correlations
Correlation Statistics
 
age
1 2 3 4 Initial testing of the study hypotheses carried out by
1      
gender using the correlational analysis. The correlation
-.218** 1    
matrix (see Table 3) reveals that operating efficiency
GP .211** .052 1   has significant positive correlation with government
OE .143 .068 .457**
Note: **. Correlation is significant at the 0.01 level (2-tailed), GP =
1 policies (r=0.475, p<0.01) but insignificant with
government policies, OE = operating efficiency
demographics, which has been controlled in our
study.
 REGRESSION STATS

Table 4: Model Summary

MODEL SUMMARY
We found that r square is 0.209 which
Adjusted
Std. Error
of the
reveals that 20.9% of the data fit the
Model
1
R R Square R Square Estimate
regression model. So It has positive
.457a .209 .205 .73669
Note: Predictors: (Constant), government policies
significant relationship with operating
efficiency (see Table 4).
 REGRESSION STATS
ANOVA
We found in ANOVA table that impact of government policies on
operating efficiency is significant. From the ANOVA table, our
significant value is less than 0.05 so information is
accurate and we can reject the null hypothesis.
Table 5: ANOVA
Sum of Mean
Mode 1 Squares df Square F Sig.
Regression 48.9
26.567 1 26.567 .000b
52
Residual 100.402 185 .543    
Total 126.969 186      
Note: Dependent Variable: operating efficiency
Predictors: (Constant), government policies
 REGRESSION STATS
COEFFICIENTS
We also found the unstandardized coefficient which shows the
impact of government policies on operating efficiency is
significant (B = 53.8, p<0.01), and government policies brings
53.8% change in operating efficiency.

Standardize
Unstandardized d
Coefficients Coefficients
Model B Std. aError Beta t Sig.
1 (Constant) 2.056 .311   6.605 .000
M_GP .538 .077 .457 6.997 .000
Note: Dependent Variable: operating efficiency
 CONCLUSION

• Study has shown that Government policies has significant and positive relation with
operational efficiency of airlines.
• . Due to these results, this research has failed to reject the null hypothesis i.e.
“Government policies has no significant and positive relation with operational efficiency of
airlines.”
 RECOMMEDATIONS
• Airlines must focus on turning resources into revenues efficiently.
• Airlines should focus on enhancing the flights performance activities accurately and in a
well mannered way.
• Airlines must use integrated and evolving strategies keeping in view the government
policies.
• Govt should examine the impact of taxes on airlines and passengers and take serious
measures to reduce the charges imposed on air travel
• Govt should stick to the principles of ICAO’s Policies on Taxation in the Field of
International Air Transport.
• ICAO and IATA should conduct evaluation of the status of taxes and charges imposed on
air travel and their impact on the industry.
THANK YOU