AVIATION

Defines
Design, development,production,operation and use of aircraft. Derived from avis the Latin word for bird Air craft manufacturers are Piper,Diamond,Hawkerbeecraft

Carries flag of UAE

Wins award of best airline of 2011 Net profit in 2011 was (+)5,441.00

billion

UNITED AIRLINES
Founded in 6 April 1926 Carries flag of USA Net profit in 3-3-2011 was US$ - 65 million

LOCAL TREND
AIR BLUE

 Founded in Key people Head quarter Ground services

2003 Shahid Khaqan Abbasi Islamabad Stock Exchange Tower Gerry Dnata handles most air blue planes 05 PKR 2.3 billion (2010)

Fleet size Revenue

SHAHEEN AIR

Founded
Key people Fleet size Head quarters Ground services Revenue

1993
Khalid Sahbai 12 Jinnah international airport Karachi Contract with Gerry Dnata PKR 89.257 (million) 2010

Introduction Carrier airline of Pakistan Head office on the grounds of Karachi Employees ------------18,043 people

GOVERNMENT SHARE IN PIA

Govt share 87%

Domestic Network of PIA

International route map of PIA

 Mission
Offering the quality customer services and innovative products.

Achievements

First airline in Asia to introduce auto ticketing First airline to operate a jet air craft First airline to start a airline safari with a jet air craft

Ch. Ahmad Mukhtar Malik. Nazir Ahmad Mr. Jawed Lawai Dr. Waqar Masood Khan Capt.Nadeem Khan Yousaf Zai Mr. Yousaf Waqar Makhdoom Syed Ahmad Makhdoom

 Financial performance continues to be a challenge in 2010

Loss of PKR 20.785 billion in 2010

Going in loss from 2004 to till yet

Research Methodology
As both approaches i.e. qualitative, quantitative are use

Target population

It includes people from my society, employees of PIA, and EX student of Baha-ud-din Zikaria University . Sample Size Sample size of 30 respondents is selected. Variables Dependent variable-------------losses Independent variable-----------poor management Research instrument A blend of both qualitative and quantitative technique is used. Data collection and Screening procedures. Data was collected through questionnaires and interview of two officials of PIA.

Per hour loss -------------------- 2 million rupees Per day loss----------------------- 40 million rupees

 01 billion rupees lost in first quarter of 2010 because of increase in

cost of leased crafts and over all expenses are increased by 32%.
In 2008 operating and financing cost increase in proportion and ban

of EU on PIA crafts except Boeing. 777 reduces the revenues

In 2009 passenger revenue was decreased by 5.4% and cargo

revenue was decreased by 10%.

In 2006 salary hike of employees results in increased charges of

non AP planes or leased planes

PIA is ranked as 3 star air line in 2011 by Skytrax.

Market size and Market growth

In 2010-11 the market size was 7.27 million

passengers as compared to 2009-10 which was 7.93 million passengers.

Lapses in management
Lack of expertise Over head cost

Corruption at its peak

Nepotism and political involvement

Aged fleet
Lack of check and balance Increase in expenses Low scale advertisement Over staffing

High officials

Maintenance problems. Lack of experience relating to aviation industry.

PRIVATIZATION
The privatization of PIA was announced many times but never implemented.

Back door discussions with potential buyers.

FINANCIAL ANALYSIS ----------A HOT RECAP

Profitable years for PIA are from 2001 to 2004. The route cause for the loss was started when the then Prime Minster Shoukat Aziz appointed his own friends to head the airline. In the era of MD Capt. Aijaz Haroon in incurred loss of PIAs 55 years old history.

Banned by European Union in 2009.

Rupee lost its value against US $.

Crude oil prices increased 147 $ per barrel.

PIA ----------------- AT BOTTOM LINE

Revenues
Revenue Net Dec 31 2010 Dec 31 2009

Passenger Cargo Excess baggage Charter Handling & related Services Engineering Services Room, food, bewares

79,817,592 5,458,688 875,530 183,806 686,755 936,578 9,205,365

62,002,315 4,849,735 865,657 163,806 712686 718,333 7,546,179

PRIMERY DATA RESULTS In flight services

38% passengers are some what satisfied. 42% are dissatisfied. 20% are satisfied.

Passengers view about flight timing

About only 35% people are satisfied with the timings of departure / arrival

RESERVATION SYSTEM FOR TICKETS 35% Passengers are somewhat satisfied 12% Passengers are satisfied. 53% Passengers are dissatisfied.

STAFF ATTITUDE
89% Passengers are dissatisfied. 7% Passengers are satisfied. 4% Passengers are some what satisfied

 POLITICAL FACTORS ARE AFFECTING THE PIA

87%Passengers are agreed. 11% Passengers are some what agreed. 2% Passengers are disagreed.
SECURITY OF PASSENGERS

AND LUGGAGE

58% 23% 19 %

Passengers are satisfied Passengers are somewhat satisfied. Passengers are dissatisfied.

STRENGTHS
Point to point services Govt sponsored organization People oriented organization (no language problem) Healthy internal environment

WEAKNESSES
Less international traffic. Weak rewards and appraisals. Lack of professionalism. Less effort in the field of marketing. Poor management . Over burdened employees. Lack of professionalism. Favoritism. Centralized decision making

OPPORTINITIES
Big markets available that are unreserved Low cost carriers Better recruitment policy

THREATS
Fluctuating oil prices High amount of loan Government changing Terrorism Privatization Weak financial position

POLITICAL FACTORS
If the Govt remain stable then PIA must purchase new advanced airplane to compete in international market.

Economic Factors
September 11 attacks. Global depression in Asia. Having new Boeing 777 & Boeing 737 which have longer range and better fuel capacity.

Social factors
People are more aware of market. Hajj operations attracts people. E-ticketing opportunity.

Technological factors
Innovation made in booking and reservation. In flight entertainment and auto checks.

Conclusion
Political influence Aged fleet Absence of check and balance Unfair wages Absence of merit for recruitment Misuse of meals and transport Influence of Union Centralized decision making

Decentralization Strategic Business Unit Employee Empowerment Overhead Costs

PIA Wikipedia Gohar .com (PIAs downhill slide into heavy losses in 2010) Economic survey of Pakistan (http;//www.gov.finance.pk/ M.Asharaf (salary maintainer PIA Islamabad) Attaullah Khadim Finance department (PIA Faisalabad) M.Nazir Nasir (Air traffic controller PIA ISB) Express Tribune 26th February 2011.