Pakistan International Airline

Analysis of Institution.

1. Kashif Sanaullah 15-10734 Salman Akhlaq Ahmed 15-10703 Abdul Rehman Amin 15-10702 Muhammad Asadullah Khan 15-10135 Pakistan International Airline

2. Overview Introduction Organizational Structure Current Picture SWOT Statistic New Investment Project Reference

3. Vision “To be world class airline Exceeding customer expectation through dedicated employees committed to excellence.”

4. Mission Employee teams will contribute towards making PIA a global airline of choice through : Offering quality customer services and innovative products Using state-of-the-art technologies Ensuring cost-effective measures in procurement and operations Developing Safety Culture

5. Orient Airways Muhammad Ali Jinnah requested Mirza Ahamd Isphani and Adamjee Haji Dawood to build airline for Pakistan. Orient Airways was registered in Calcutta. T he airline bought three DC-3 airplanes. The planned route for Orient Airways was Calcutta-Rangoon- Akyab

6. Birth of PIA Government of Pakistan decided to form a state-owned airline. In 1955, PIA started first international service route to London, via Cairo and Rome. In 1959, the Government of Pakistan appointed Air Commodore Nur Khan as the Managing Director of PIA.

7. Milestones First Boeing 707 jet service on the London-Karachi-Dacca. In 1961, initiated a C ross-Atlantic service from Karachi to New York . PIA set the record for the fastest flight between London and Karachi. PIA's first service to China was from Karachi to Shanghai via Canton.

8. Style, Glamour and Charisma In 1966, introduction of a new air-hostesses' uniform designed by Pierre Cardin. Installed Pakistan's first computer, an IBM1401, in 1967 . Set up flight kitchen in Karachi which caters PIA as well as other carriers. Later in 1975, Sir Hardy Amies , designed new uniforms.

9. Organizational Structure of PIA

10. Current Picture PIA serves 30 domestic and 36 international destinations in 28 countries. The average ratio of staff should not exceed 100 per aircraft while PIA has more than 400 employees per aircraft . P IA has around 19,418 employees as of 2014.

11. Current Picture First Quarter 2014 - Revenue 28 Billion First Quarter 2013 - Revenue 25 Billion PIA has 34 planes Only 24 are operational

12. PIA’s Fleet PIA’s Fleet Aircrafts Quantity ATR 42-500 6 ATR 72-500 1 AIRBUS A310-300 9 AIRBUS A320-200 3 BOEING 747-300 1 BOEING 777-200ER 4 BOEING 777-200LR 2 BOEING 777-300 ER 3

13. Domestic Routes Gilgit Lahore Dalbandin Chitral Faislabad Sukkar Skardu Zhob Panjgor Saidu Sarif Multan Jacoabad Islamabad D.G.Khan Turbat Peshawar Quetta Moenjodaro Sialkot Bahawalpur Gawadar D.I.Khan Rahim Yar Khan Karachi

14. International Routes Beijing Tokyo Mumbai Delhi Dhaka Kabul Kashgar Kaula lumpur Birmingham Copenhagen London Manchester Milan Oslo Paris Abu Dhabi Bahrain Dammam Doha Jeddah Dubai Kuwait Madinah Muscat Riyadh Sharjah New York Toronto

15. PIA’s Offerings PIA Business Plus Class PIA Cargo PIA Speedex Baggage Track Service Global Special Deals Holiday Deals Senior Citizen Discounts Student Discounts

16. Code Sharing Agreement PIA has 4 Code Sharing Agreements Turkish Airlines (June 2006) AeroSvit Airlines (November 2006) Thai Airways (March 2007) China Southern Airlines (March 2007)

17. PIA Subsidiaries Scribe Hotel in Paris Roosevelt Hotel in New York Increase in revenue of $ 3 million Profit after tax increased by 9.6 % Skyroom Limited in Karachi Revenue has increased by 10.6%

18. SWOT ANALYSIS

19. Strengths Leading market position. Brand recognition. Network presence. Hub airport at Karachi. Effective use of technology Electronic ticketing by web.

20. Weaknesses Formulation of Government rules. Old fleet Poor quality food High dependence on passenger revenues. Debt Reliance on oil prices Huge burden of employees

21. Opportunities Having the maximum route and fleet. Growing demand for low cost airlines. Customer loyalty. Huge market in middle East. Large domestic network

22. Threats Accidents Strong competition Decline in airline industry Terrorism Political instability and law and order situation

23. STATISTICS

24. Profit/Loss H istory

25. Cost Composition

26. Breakdown of Revenue

27. Capacity and Utilization of Cargo

28. Market Share of PIA

29. Yearly Flight Departures

30. Annual Report 2013 Particulars Year Ended December 31 2013 2012 (PKR in Millions) Turnover-Net 95,771 112,130 Operating Cost and Expenses (121,421) (127,233) Other Income 1,664 3,405 Exchange Loss (6,407) (6,697) Financial Costs (12,588) (11,381) Loss Before Tax (42,981) (29,776) Taxation (1,550) (810) Loss after tax (44,531) (30,586)

31. Operating Expense R atio Years Ratio 2013 124.40% 2012 115.44% 2011 115.38% 2010 99.33% 2009 104.29%

32. PIA EX Lahore – Toronto (non stop) 14 hrs Lahore - Dubai (non stop) 3hrs 25 min Wet lease airplanes from Qatar Airways. Boeing 737-800 (180 S eater )

33. Bring 60s PIA Back In Flight Entertainment Activities Trivial Quizzes Karaoke Wi-Fi Seat - Seat Chat. Business Class Pick and Drop services for business class within city. Personalized Meals for Business Class. Yves Saint Laurent designed air hostesses uniforms.

34. Total Cost of Project Unit cost (PKR) Wet Lease 36 million 2 72 million Aircraft accessories 10 million 10 million Personalized meals 30 million 30 million Transportation 10 million 200 million Miscellaneous 100 million 100 million Consultant fees 100 million 100 million Fuel 1.301 billion Total 1.823 billion

35. Investment Required Investment Required Units Total Cost Wet Lease 2 72 Million Transportation 30/City 200 Million Consultant fees 100 Million Miscellaneous 100 Million Total 472 Million

36. Revenue Revenue Amount (PKR) Lahore to Dubai Sale of Tickets (Economy Class) @ 30,000 655,200,000 Sale of Tickets (Business Class) @ 65,000 1,411,200,000 Lahore to Toronto Sale of Tickets (Economy Class) @ 100,000 1,344,000,000 Sale of Tickets (Business Class) @ 195,000 561,600,000 Total 3,972,000,000

37. Need For This Project Over Staffing In L oss Since 1996 Old Fleet Poor Management Political Interference Very Low Customer Satisfaction Flight Delays Underinvestment Corruption

38. References http:// www.piac.com.pk/pia_about/profiles/2013/PIA-Annual-Report-2013-27052014.pdf http://www.piac.com.pk / http://www.historyofpia.com/forums / http:// www.pprune.org/airlines-airports-routes/476628-wet-lease-cost.html http:// www.hifly.aero/en/wet-leasing http:// www.dawn.com/news/1135512/pia-acquires-two-boeing-aircraft-through-wet-lease-program

39. References http:// www.dawn.com/news/1135512/pia-acquires-two-boeing-aircraft-through-wet-lease-program http:// www.dawn.com/news/1137739/pia-gets-two-aircraft-on-wet-lease http:// www.dawn.com/news/1121292/flag-carrier-running-on-only-19-planes-pia-chairman Ideas from Dr. Bashir Khan Ali Sajjad – Civil Aviation, Pre-Flight Department Naveed Ahmed Khan - Civil Aviation, Air Traffic Control Officer