Presented to

Dr. Syed Aziz haider

By
Shaheryar Ihsan
MBA professional
F18-2062
Introduction
PIA is the national flag carrier of Pakistan. Its main hub
is Karachi while Lahore and Islamabad serve as secondary
hubs.
The airline was founded on 29 October 1946 as Orient
Airways, initially based in Calcutta, British India, before
shifting operations to the newly independent state of
Pakistan in 1947.
It was nationalized and merged with other airlines in
1955,and Pakistan International Airlines Corporation
came into existence. The airline commenced international
services in 1955 to London, via Cairo and Rome.
Introduction
PIA is Pakistan's largest airline, and operates a
fleet of more than 30 aircraft. The airline operates
scheduled services to 20 domestic destinations
and 25 international destinations to 18 Countries
across Asia, Europe, Middle East and North
America along with 19 interline destinations. It
operates nearly 100 flights daily.
The airline employed nearly 14,000 people.
PIA also owns The Roosevelt Hotel
 in New York City.
The Sofitel Paris Scribe
Hotel in Paris.
 Revenues
Rs. 68.88 billion PKR (Third Quarter Report 2017)
Net Income
Rs. (30.48) billion PKR (Third Quarter Report 2017)

Profit/(Loss) (PKR in
Year Revenues (PKR in Million) Employees (Ave.)
Million)

2016 88,997 (45,381) 14,000 approx.

2015 104,515 (34,995) 15,000

2014 113,780 (34,006) 16,000
2013 95,771 (44,322) 16,604
2012 97,438 (33,844) 17,439
2011 116,551 (26,767) 18,014
2010 107,532 (20,785) 18,019
2009 94,564 (5,822) 17,944
2008 88,863 (36,139) 18,036
2007 70,481 (13,399) 18,149
2006 70,587 (12,763) 18,282
2005 64,074 (4,412) 19,263
2004 57,788 2,307 19,634
 Slogans
-we fly at the right attitude
-Great People to Fly With
History
Pre Independence History
Pakistan International Airlines can trace its origins to the days
when Pakistan had not yet gained independence from the British
Raj.
In 1945, the country's founder Muhammad Ali Jinnah realized the
need for a flag carrier for the prospective country and requested
financial help from wealthy businessmen Mirza Ahmad
Ispahani and Adamjee Haji Dawood for this purpose.
Around that time, a new airline Orient Airways, was registered in
Calcutta (now Kolkata) on 23 October 1946.
In February 1947, the airline bought three Douglas DC-
3 aircraft and obtained a license to fly in May of the same year.
 The airline started its operations in June.
Post Independence History
On 6 June 1954, Orient Airways started its operations by offering
flight services between East-and West Pakistan with service
from Karachi to Dhaka.
In addition, the airline also introduced two new domestic routes:
Karachi–Lahore–Peshawar and Karachi–Quetta–Lahore.
However, due to sustained losses being suffered by the airline,
the Government of Pakistan proposed that Orient Airways merge
with a new national airline. On 11 March 1955, Orient Airways
merged with the government's proposed airline,
becoming Pakistan International Airlines Corporation.
 The newly formed airline also inaugurated its first international
route, Karachi-London Heathrow Airport  via Cairo and Rome.
 In 1970s
 During this decade PIA was regarded as Asia's best
airline.
 For the first time since its inauguration, PIA started
providing technical and administrative assistance or
leased aircraft to foreign airlines including Somali
Airlines, Philippine Airlines, Air Malta
and Yemenia.
 In 1980s The decade began with the opening of
a cargo handling centre at Karachi airport, duty-free
shops, the first C and D safety checks on its entire
fleet.
In 1990s the airline introduced flights
to Tashkent in 1992 and to Zürich in 1993.
Business Description &
competitors
Business Description
services or products
Cabin PIA operates a three-class configuration on its
domestic routes: Business, Economy Plus+
and Economy. On international flights a two class
configuration, Business and Economy class, has remained
popular. PIA Business passengers are offered lie-flat bed
seats on all Boeing 777 aircraft. 
Catering
PIA Catering is the main supplier of meals for the
airline. It can produce 15,000 passenger meals each
day.
 PIA does not serve Alcohol beverages on its flights
In flight Magazine
The PIA in-flight magazine, Humsafar (Urdu for
"travel companion"), is provided to all passengers on
all flights. 
In flight Intranet
In January 2017, the airline began trials on an on-
board intranet system to deliver in-flight
entertainment on some domestic flights. The system
allows passengers to access a selection of in-flight
entertainment content using their own mobile devices.
Cargo services
PIA operates a cargo delivery system within Pakistan
as well as to international destinations.

In 2003, the airline launched "PIA Speedex", a courier

service in Karachi, Lahore, Rawalpindi and Islamabad
initially.
This later expanded twelve cities within a year.
Today, the airline offers over 70 locations within
Pakistan, with shipments collected and delivered from
customers homes.
Hajj and Umrah operation
 PIA operates a two-month
(pre- and post-) Hajj operation each year to and
from Jeddah and Madinah in Saudi Arabia.
PIA transported over 100,000 intending pilgrims each
year
from Karachi, Lahore, Islamabad, Peshawar, Quet
ta, Faisalabad, Multan and Sialkot to the Kingdom
of Saudi Arabia
State officials transportation

PIA has been continuously serving government

officials of Pakistan, and has always transported the
President and Prime Minister on overseas visits.
PIA Competitors
Vision statement
To be world class airline exceeding customer
expectations through dedicated employees,
committed to excellence, innovation products and
absolute safety.
Mission Statement
Employee team will contribute towards making PIA a
global airline choices through;
Offering quality customer services and innovative
product
Using state of the art technology
Ensuring cost effective measures in procurement and
operations
Developing safe culture.
Strategies

Corporate strategy
Competitive strategy
Functional strategy
Corporate strategy
In strategic level senior managers need to develop
their skill of making the best decision possible. This
type of decision usually concerns about general
direction, long term goals. These decisions are the
least structured but they could have significant impact
on the future of the organization.
Corporate strategy
One type of decisions that is made in the strategic
level is planning for gaining long term benefit, which
is the PIA objective. This type of decision could require
managers to add new destination in their flight
schedules.
Another long term decision in PIA is buying new air
plane (Airbus 380). Buying a new aircraft is a strategic
decision because manager should consider this
decision is it going to benefit them in future or not.
Competitive strategy
PIA positions itself in its industry through its choice of
low cost and differentiation.

Cost Leadership strategy

providing products or services at
low cost as compared to its competitors.
Competitive strategy
Differentiation strategy
With a differentiation strategy, the airline
competes in the marketplace by providing product or
service that is unique in the industry and charges a
premium price for its product. The uniqueness can be
associated with design, brand image, technology,
features offered, dealers, network, or customer service
or anything that adds customer value.
Functional strategy
Operational decisions are every day decisions and
used to support tactical decisions. In the operational
level the daily requirement are reviewed in order to
make the decision. Thus, the operational decision is
highly structured and their impact is immediate, short
term, short range. The data used to drive this decision
type is usually prescribed or defined in the procedures
and rules of the organization,
Bargaining power of customers
Bargaining power of customers is low due to following
reasons;
PIA has a monopoly in Pakistan.
Due to current terrorist threats, most of world leading
airlines have stopped operating from Pakistan.
There is only one substitute for air travel that is by
sea and most people do not prefer that as its pretty
time taking
Bargaining power of suppliers
Bargaining power of suppliers is high in PIA due to
following reasons;
There are only two suppliers of public air travel, Boeing
and Airbus.
The agents working for PIA are large in number
as compared to other airlines but not many are
interested in replacing them.
Oil companies are already giving fuel on debt to PIA
hence making them strong and reducing our
bargaining power against it
Threat of substitute products
The threat of substitute products is very little as
people are not used to travel by sea and there is no
other substitute.
Threat of new entrants
Threat of new entrant is low based on following
reasons;
PIA has complete monopoly in major international
routes.
This is a business which requires high starting capital,
and slower returns.
Market in Pakistan is very limited.
Competitive Rivalry in Industry
Competitive rivalry is overall less when seen the
whole industry there is a little hint when comparing
PIA with Air Blue.