In the past decennary, air travel has grown by 7 % per twelvemonth. Travel for both concern and leisure intents grew strongly world-wide. Scheduled air hoses carried 1.5 billion riders last twelvemonth.[ I ]

Worldwide, IATA, International Air Transport Association, forecasts air travel to turn by an mean 6.6 % a twelvemonth to the terminal of the decennary and over 5 % a twelvemonth from 2000 to 2010. These rates are similar to those of the past 10 old ages. In Europe and North America, where the air travel market is already extremely developed, slower growing of 4 % -6 % is expected. The most dynamic growing is centered on the Asia/Pacific part, where aggressive trade and investing are coupled with lifting domestic prosperity.[ two ]

In Pakistan the transit and communicating sector holds more than 10 % portion in GDP ( Gross Domestic Production ) . The air power industry can impact the other sector of the economic system, e.g. the International Trade, touristry and socio-economic status of the country.A

Historically Pakistan International Airline dominates the major part of air power industry. The province owned PIAC set up in 1955 to carry on the domestic as good international operations. It enjoys the monopoly until the deregulating of air power industry.A[ three ]

Best services for writing your paper according to Trustpilot

Premium Partner
From $18.00 per page
4,8 / 5
Writers Experience
Recommended Service
From $13.90 per page
4,6 / 5
Writers Experience
From $20.00 per page
4,5 / 5
Writers Experience
* All Partners were chosen among 50+ writing services by our Customer Satisfaction Team

Pakistan has a limited figure of air hoses runing in the state and an even more limited figure of air hoses that provide international finishs as good. PIA being the National Flag Carrier Is the largest air hose in Pakistan and is therefore offering the largest web in comparing to any other air hose in Pakistan.

In the international sphere, PIA is being faced with intense competition as many International air hoses, particularly in-between eastern air hoses are runing in Pakistan on a regular footing and supply flights to finishs that PIA does non. With the coming of these air hoses, PIA has faced stiff competition and has therefore lost out on rider grosss as it has done nil to provide to those jobs.

If the financials for PIA are looked at, it can be seen that the gross being generated by international flights is diminishing at an dismaying rate over the last few old ages. This is despite the fact that PIA has introduced new aircrafts for paths such as London, Toronto, New York and Manchester. Attempts to recover the market portion have been initiated but as the company lacks the proper support etc to properly implement these alterations, no positive consequences have been seen.

Regulation and Control within Industry:

Pakistan Civil Aviation Authority is a Public sector independent organic structure working under the Federal Government of Pakistan through the Ministry of Defence. It was established on 7th December, 1982 as an independent organic structure. Prior to its creative activity, a Civil Aviation Department in the Ministry of Defence used to pull off the civil air power related activities.[ four ]

The twenty-four hours of 7th December has significance, as it coincides with the day of the month of creative activity of International Civil Aviation Organization ( ICAO ) in 1944 as a consequence of the celebrated Chicago Convention. Incidentally, the United Nations have declared seventh December as the International Civil Aviation twenty-four hours and celebrated as such every twelvemonth wholly over the World.[ V ]

All sorts of Civil Aviation related activities are performed by CAA including the regulative, air traffic services, airport direction, substructure and commercial development at the airdromes, etc.

Recently, Civil Aviation Authority underwent Restructuring and Change Management procedure to run into the present and future challenges. This organisational transmutation procedure identified Structure, Culture, Skills, and Rewards as four paths on which coincident accent is being laid. The Vision, Mission, and Core Values have been identified. Fisheye buy-in procedure by CAA senior direction with staff and lower degrees for bridging communicating spreads between different hierarchal degrees of the organisation has been taken. As a consequence of the Restructuring procedure, the cardinal organisation construction has been balanced to concentrate on three nucleus countries viz. Regulatory, Air Navigations Services, and Airport Services. These Core / Line maps are to the full supported by the assorted corporate maps of the organisation.[ six ]

The restructuring procedure has helped Pakistan Civil Aviation Authority to to the full concentrate on:

Strengthening its safety and security oversight function as per International Civil Aviation Organization demands and criterions.

To ease growing of the substructure development ( Airports and Airport Cities ) on a fast-track footing. Private sector engagement in the procedure is besides being encouraged.

Enhanced Regulatory and air infinite direction capablenesss. Furthermore, accent is being laid on commercialisation of its assets and land with improved client / rider service criterions, benchmarked with top executing international airdromes

Development of a New Aviation Policy for the state in audience with the Ministry of Defence, Planning Commission, World bank, Airlines, and Aviation Experts ( Expected to be considered by the Cabinet for blessing shortly ) .

Investing in Human resource development through structured attack with peculiar focal point on quality of people and heightening their professional capableness.

Literature Review

The article ‘The hereafter of the air hose industry, traveling into free autumn or mounting steadily. ‘ states that the air hose industry is a really rickety industry a it suffers violent fluctuations. Recent tendencies in the air hose industry have shown that the riders have been greatly reduced for many grounds. One chief ground in the economic downswing which has been go oning for the past few old ages.

Passengers have had to confront economic jobs due to the economic downswing and therefore they have small money to pass on things like holidaies etc. Cheaper air hoses are preferred which offer lower cost services and acquire you to your location for a lower cost than a full service air hose.

Business travelers have besides decreased drastically over the last few old ages. Merely late they have started to lift once more and therefore they are non at the degree they one time were. Companies have started to put off people and therefore there are fewer people winging. Companies besides have resorted to utilizing engineering oriented merchandises in order to over come the distances like picture conferencing etc. Budgets of these companies have besides decreased for travel intents.

Airlines one time used to trust on concern travelers as they contributed to a significant addition in their grosss and by their absence the air hose industry is now enduring immense fiscal losingss as these people are non winging every bit often as they used to before.

An unknown writer at the Massachusetts Institute of Technology ( MIT ) states that with the coming of low cost air hoses, the major air hoses now no longer bask the profitableness and other advantages that they one time used to. Competitive advantage derived from larger aircraft productiveness is of great importance and is achieved by a mixture of utilizing uncongested less of import airdromes and non supplying anything other than point-to-point services, like interlining. In add-on, low cost air hoses operate a individual type fleet. By holding merely one aircraft type, pilots and cabin crew can run on any aircraft in the fleet. Another cardinal country where a low cost air hose can derive a cost advantage over web bearers is in distribution.

Direct competition between full service air hoses and no-frills bearers is increasing across the universe. U.S. and European full service air hoses have lost a important portion of their riders to low cost bearers ; the experience is now being repeated in the domestic markets of Asia. Consumers have benefitted from the rise of the low cost sector in footings of more competition, more finishs, greater frequences, and a greater diverseness of menus.

Therefore through this article we can see that these low cost air hoses have a stringent concern program, which they abide by. Unlike national bearers, like BA or PIA, loss generating paths are non at all preferable and flights on these paths are instantly ceased. Profitableness remains the major purpose of these companies but non at the disbursal of a ticket which a consumer will be loath to purchase. Hence maximising profitableness and minimizing costs is an indispensable characteristic of low cost air hoses.

Jet fuel monetary values have besides been widely fluctuating every bit good and therefore air hoses have had to increase their monetary values in order to stay afloat. Keeping in head the high oil monetary values people have had no option but to take alternate methods of travel like the train or the coach. Flying which one time used to be a manner to acquire to a point in a faster clip no longer remains the top precedence for travelers as they are still willing to look for cheaper options instead than pay excess money.

Matthias ( 2009 ) provinces in her article that the ordinances refering to these peculiar air hoses are now fastening up. These air hoses have to confront rigorous ordinances when winging, peculiarly in the EU. The air and traffic regulations and ordinances hinder the success of these air hoses. The air hoses have had a bound put on them which prevents them from holding the coveted sum of flights they want to hold. This prohibits the clients from winging at a clip of their pick and therefore for a individual who prefers to go at dark, might fall back to taking a train at dark in order to acquire to the location where they need to travel.

Therefore this hampers the gross revenues of air hoses every bit good as the planes are idle for a few hours every twenty-four hours and no flights are permitted. Local ordinances are besides impeding the advancement as regulations have been put in topographic point which stops these air hoses from taking off at dark. This is cut downing the figure of flights a low cost air hose can hold which will finally impact the profitableness of the company/airline.

The civil air power authorization is besides pressing the air hoses to allow their planes “ rest ” plenty before they fly away once more. As they fear that these aeroplanes are being pushed to the bound. This, they fear, is non a smart pick. Safety is a top pick for the civil air power authorization. Keeping in head recent incidents sing the air hose industry, people tend to avoid winging anyplace.

Different aeroplanes vary in footings of the times they are allowed to wing as these air hoses believe that maintaining their aeroplanes in the sky will be profitable for them, they pushed exceed the bound. The civil air power authorization hence is bespeaking and inquiring these air hoses to cut down on this and if possible attention deficit disorder more planes to their fleet in order to better profitableness when the Numberss of flights are cancelled.

MCB UP Ltd ( 2003 ) states that owing to the immense success of air hoses which are budget/ no frills air hoses, the other air hoses are now competing for the bigger portion of the pie. This paper examines the possible effects of this occurrence and is it a feasible option or non and if it will win or non every bit good. It talks about air hoses like BA which one time had a monopoly and was known as the universes favourite air hose ; that is non the instance any longer. It farther negotiations about the instance of amalgamations which may happen between low cost air hoses like easy jet and Co.

Further on it elaborates on how large airlines/carriers will be able to last, that is through opening up budget air hoses every bit good like supplying price reductions and by retaining their loyal clients who enjoy having those certain fringe benefits up in the air and monetary value dramas no of import function in the finding of which air hose they will wing.

Liberalization of the low cost air hose industry has besides helped advance these air hoses as bulk of the travellers are independent travellers.

Last, the instance of victors and also-rans was besides given. This highlighted the fact that there are traveling to be both victors and also-rans in this game. The victors will be major low cost air hoses like EasyJet, Ryanair, SouthWest and air hoses like BA, which are immense air hoses runing on a monolithic graduated table. The also-rans nevertheless will be those air hoses which are budget air hoses in competition which other budget air hoses like EasyJet, Ryanair and SouthWest, to advert merely a few. Other also-rans will be those who have joined the game excessively tardily and the lone manner they can last is through amalgamations with other budget/no frill air hoses like EasyJet, Ryanair and SouthWest.

Koenig ( 2011 ) provinces in his article that air hoses around the Earth are following a new technique for bring forthing net incomes which is that they will wing less and charge more. This means that air hoses will now be winging a fewer figure of flights in order to cut down costs on empty seats on aeroplanes. The air hoses will besides bear down excess money for things such as flight alterations, in front of clip place allotments and checked in luggage. Other things which will take topographic point is the foundation of gas gulping aeroplanes, eliminated money losing paths and the consolidation with other air hoses.

This was fundamentally done in the visible radiation of the economic recession. Fewer riders were winging, air hoses were incurring a loss and oil monetary values were increasing at a rapid gait. This all led to the thought of making demand in the market so that the monetary values of the seats could increase and hence the air hoses could do a net income alternatively of remaining in shortage. Now with the cut back in the figure of flights per finish, riders are willing to pay a higher monetary value for the tickets. This is specifically true for concern travellers. T he 9/11 onslaughts have besides proven to be black for the air hose industry every bit good.

Hence in decision we can see that air hoses have started raising fees and monetary values of tickets in order to better profitableness as they have besides been hit by the recession and have been incurring losingss over the last few old ages. Some stairss taken by these air hoses is to bear down for excess luggage and besides bear downing if purchasing through an agent and non via cyberspace. This manner they are able to bring forth more gross for themselves.

An article written by the International Air Transport Association ( IATA ) states that air traffic consequences for a peculiar month were down well in comparing to the same clip a twelvemonth ago. This harmonizing to them is the stone underside that they have hit. This is peculiarly because of the recession. The article goes on to state that even though the impact of the recession is stabilising, there are still heavy debt etc to pay and therefore retrieving from the recession is delayed.

Recession is non the lone thing that the air hoses have had to worry about in footings of losing out on the patronage. Viral eruptions like the grippe virus and the dengue virus peculiarly in Pakistan are besides haltering the recovery of the air hose sector and therefore air hoses are losing net incomes. Passengers are non willing to go to such locations where they are at a hazard of acquiring a disease.

The article farther goes on to state that while air hoses are losing money as good, their portion monetary values on the stock markets will besides travel down and therefore put the air hoses in a state of affairs that is non good. This will do many air hoses to cut back on a batch of their outgos which will therefore take to a batch of people being fired and in some worse instance scenarios, air hoses may even hold to confront bankruptcy as good.

Harmonizing to the International Air Transport Association, this is the worst crisis that they have of all time seen in the air hose industry. The air hoses have had to confront a batch of problem during the last few old ages and even the air hoses which were financially sound had to take a bead in their net incomes and cut back on a few excessive characteristics merely to stay afloat.

hypertext transfer protocol: //

Passenger Decline Stabilizes – Some Improvement in Freight

Another article written by the International Air Transport Authority states that air hoses have started to see some stabilisation in the concern and the first category sectors of the air hoses. These are the most profitable sectors for an air hose.

These sectors are back up and running because of the fact that the economic crisis is now bettering and easy people are returning back to their normal lives and concerns have stabilized and therefore they are back to making concern as they were before the crisis took topographic point a few old ages ago in the universe.

Business category has non recovered to the full either on the other manus. Passengers who used to wing these categories now resort to winging economic system or taking budget air hoses. This is due to the new reforms that some companies have come up with curtailing the usage of the high terminal seats by its employees in an attempt to salvage up on the money.

Economy category riders who were the tourer category riders have non to the full come back to their original figure nevertheless. As the bulk of the gross on a flight does come from the economic system category, air hoses are get downing to experience the effects of diminution of riders now.

The article farther goes on to province that as a consequence of all of the above, riders Numberss are now being stabilized at the disbursal of much lower outputs for the air hoses now as air hoses are seeking to hike up their hard currency flows now.

Decline in concern air travel decelerating – IATA

( Editing by Stephanie Nebehay and Mariam Karouny )

Overview of PIA:

Pakistan International Airlines Corporation, through its subordinates, provides rider, lading and Group Tours air conveyance services. It besides offers messengers, technology, luggage, charter, mail and telephone, and managing and related services. In add-on, the company operates as a booster and investor in undertakings related to building, development, and operation of hotels, motels, and eating houses ; and manages an airport hotel at Karachi. It operates in the United States, Canada, Europe, the Middle East, Africa, and Asia. The company was founded in 1946 and is headquartered in Karachi.[ seven ]

PIA Cargo:

PIA Cargo commenced operations in 1974, with flights to the USA, Europe, and Hong Kong on the B-707 aircraft. PIA Cargo has the alone differentiation of presenting Pakistan ‘s fruits to international markets and pioneered the exports of fresh fruits and veggies to planetary finishs. Operating as the air freight division of Pakistan ‘s national bearer, PIA Cargo has achieved rapid growing and reaches out to finishs crossing the Earth through its rider scheduled flights and bottom services.

PIA Cargo earns valuable gross for Pakistan International Airlines and provides a monolithic encouragement to Pakistan ‘s broad spectrum of exports. The aggressive growing of PIA Cargo coupled with PIA ‘s quickly expanding rider operations, empowers clients with a scope of cutting-edge lading merchandises and services. In add-on to offering lading services, PIA Cargo besides arranges charter flights to raise meat, farm animal and alleviation goods within and outside Pakistan.[ eight ]

PIA Courier:

In the 1970s, Pakistan International Airlines pioneered the express bringing of cargos across Pakistan. The Air Express service delivered paperss and packages from one airdrome to another, showing in the morning of the messenger industry in Pakistan.

In 2003, PIA expanded the range of Air Express and launched a fully fledged messenger service, and PIA Speedex was born. Initially functioning Karachi, Lahore, and Islamabad, PIA Speedex grew quickly and another 12 major metropoliss were added to the web. Today, PIA Speedex offers premium messenger services in 70 metropoliss across Pakistan, and cargos are collected from and delivered to the doorsills of our clients.

Capitalizing on PIA ‘s up-to-date information engineering substructure, PIA Speedex pioneered the online trailing and tracing of cargos in Pakistan, enabling clients to track the position of their packages at each theodolite point, until bringing. A scope of bringing options besides catapulted PIA Speedex to the place of a believable and dependable industry leader, giving clients flexibleness and pick at extremely low-cost rates.

PIA Speedex will shortly ramify out into the international market place, offering clients a alone mix of velocity, dependability, and affordability.

PIA Ground Service Handling:

Land managing at an airdrome is amongst the most complex and time-critical procedures in the air power industry. Even minutes of hold in a individual activity can do major jobs, taking to a significant waste of resources and holds to the full system. Backed by decennaries of operational experience, PIA offers premium land managing services to clients.

Scope of the concern:

Vision, Mission & A ; Value


Pia to be a universe category profitable air hose transcending client outlooks through dedicated employee committed to excellence.

Mission Statement:

Employee squads would lend towards doing PIA a planetary airline-of-choice:

Offering quality client services and advanced merchandises

Participating in planetary confederations

Using state-of-the-art engineerings

Guaranting cost-efficient steps in procurance and operations

Achieving equal returns for all interest holders

Bing an equal chance employer

Supplying competitory compensation and a congenial work environment

Adhering to concern moralss and zero tolerance for corruptness

Associating distant parts of Pakistan

Carry throughing our corporate Social Responsibility ( CSR ) in all Fieldss.


Customer Expectations, Convenience, Caring, and Competitive Duty

Service, Personalized and Courteous

Invention, Care foring New Ideas, Translated Into Action

Cohesiveness, Respect for Individuals, Teamwork, and Effective Communication

Integrity, Business Ethics, Accountability, and Transparency

Reliability, Loyalty and Consistency

Safety, Passengers, Employees, Environment, and Health


There was a aureate period when PIA had a name in the planetary sphere in aftermath of their superior quality. It is saddening to observe that in the recent old ages PIA has severely hampered its corporate image. Safety is ever the chief precedence of the riders when they take up flights.

The urgency of salvaging the repute of PIA calls for a serious crisis direction. PIA has to enforce more rigorous safety criterions and ordinances in order to advance safe, secure and sustainable manner of air transit. It is high clip they go beyond their existing criterions of safety and quality control.

Quality factors:

PIA is among the few developing state air hoses which are compliant to IATA Operational Safety Audit ( IOSA ) demands and criterions since 2005. PIA is successfully keeping its IOSA enfranchisement and the current IOSA Registry is valid up to 24th June, 2013. IOSA enrollment demonstrates PIA ‘s renewed committedness to run intoing the highest international operational safety criterions in critical countries which include:

Organization & A ; Management System

Flight Operationss

Operational Control and Flight Dispatch

The latest in the series of client service enterprises is PIA accomplishing successful enfranchisement against the planetary benchmark criterion ISO 9001:2008 for its full concatenation of client service activities.

PIA has been proactive in understanding the demands of clip and has launched the Health, Safety & A ; Environment ( HSE ) enterprise. The aim is to maturate the air hose ‘s HSE systems to a degree which will finally take to OHSAS-18001 and ISO-14001 enfranchisement.

Product life rhythm:

PIA lies in the growing phase harmonizing to us as they are offering new characteristics ( i.e. trueness plans, better services and better planes to call a few ) . The competition has increased as wel with a few participants come ining in the set uping market this has led to increased competition which finally has lead to monetary values being decreased.

PIA ‘s fleet of modern aircraft is broad, comfy, and designed to acquire you to your finish safely. PIA operates a scope of advanced aircrafts, runing from the universe ‘s preferable Boeing 777 aeroplane to the ace quiet Airbus A-310. Currently PIA has 52 aircraft in its fleet.[ nine ]

Distinguishing factors are that PIA has one of the largest fleets of 777 aircrafts which provide nonstop flights to consumers unlike rivals who have a way station in their place state.

In-flight Dining:

PIA serves Pakistani nutrient on board and has some of the finest caterers in the state working underneath it. The Avari Hotels are one of the major providers of on flight repasts on PIA flights.

PIA serves Halal nutrient on all its flights and riders know they are having nutrient which is non against their spiritual and dietetic specifications.

In-flight Entertainment:

PIA provides in-flight amusement on bulk of their aircrafts by demoing films and holding personalized screens through which riders are able to bask their favourite film or vocal or even games at their leisure.

PIA Cargo:

PIA Cargo, the air freight division of Pakistan International Airlines, commenced freighter operations in 1974, with initial flights to the USA, Europe, and Hong Kong. Within a short time-span, PIA Cargo has built a repute for timely bringings, operational excellence, and a high criterion of client service.[ x ]

Product Development and technological discovery:

PIA developing institute It is one of the prima Airline Training Institution. It has one of the most advanced Airline preparation substructures approved by local and international regulative governments such as CAA, ICAO and IATA.

Recently the PIA preparation Centre has revised its policies and now it functions to ;

Develop and behavior quality preparation as per the demands of user sections and regulative governments

Maintain centralized developing database of all PIA forces for forming HR activity

Maintain regular contact with sellers sing new functionalities, alterations and add-ons to update preparation plans and train the teachers

Formulate standards which will enable the preparation of PIA forces to accomplish excellence in their several fields/functions

Behavior classs, workshops, seminars, exercises, conventions, and to show documents so as to do PTC prominent in air power preparation, peculiarly in this part

It has besides been the launch client for the Boeing 777-300 which is the universe ‘s most efficient plane in footings of flight clip. This plane has the capacity to wing for over 16 hours without set downing and refueling.[ xi ]

Technical and Service jobs:

The many ground behind PIA holding so many holds and cancellations is because there are around 9 aircrafts that have been grounded ( un-authorization to wing ) . The nucleus ground for this is the deficiency of technology installations available. Many aircrafts are grounded because spare parts which need to be replaced sporadically have non been purchased as PIA has non had the fundss to buy them from the foreign makers who used to supply them to PIA ab initio.

Lack of comfortss on board has besides resulted in diminishing Passenger grosss. Passengers non unsated with PIA ‘s services displacement to other air hoses therefore doing injury to client satisfaction.

Competitive Advantages of PIA:

Dependability and safety

Has best technology installations

Has best trained pilots

National flag bearer

Pakistani expatriates when measure in the PIA plane they get the homely feelings because of the national air hose which plays a function of embassador

High linkage to the distant countries of Pakistan

Using province of art engineerings and extremely equipped technology[ xii ]

Promotional Schemes:

Following four major methods of publicity are used for advancing the merchandises and services in air hose industry.


Personal Selling

Gross saless Promotion


Public Relations

Pakistan International Airline advertised its air hose by demoing commercials on Major Television channels like Geo and ARY Digital Television. Besides they did extended advertisement in major newspapers like Dawn, The News and Daily Jang. Gross saless Promotion is besides done through hard currency refund offers ( Rebates ) and through advertisement specializers. PIA besides uses its good will to pull clients because it is a Flag bearer air hose of Pakistan and People in states like Pakistan are Patriotic and they prefer to utilize Country ‘s ain International Airline.

Success and Failure of Past Promotion policies:

No uncertainty PIA has used different manners for advancing themselves but the frequence of these publicity activities are less. Since the market and client is informed so to acquire success from promotional activities one has to present new merchandises and services. Since the merchandises and services offered by PIA are old plenty or we can state they are in a adulthood phase, that is why these promotional activities are unable to pull clients and those people are still the clients of PIA who needs to go often from concern or domestic intents.

Gross saless Force Management:

PIA ‘s rider gross revenues division is responsible for managing all gross revenues and service related issues.

Training of Gross saless Force:

On reception of developing petition from the Station ( s ) , several District Manager coordinates with

Manager Training & A ; Development ( Marketing ) / PIA Training centre for agreement of coveted preparation and station concerned is conveyed developing plan consequently.

In instance preparation petition is for Institution other than PIA Training Center ( PTC ) , instance is processed for Management blessing.

Management ‘s clearance or otherwise is conveyed to the station consequently.

Passenger Gross saless Division:

Passenger Gross saless Division is an of import portion of Marketing Department which deals with rider related gross revenues issues / activities including analysis of market tendencies, pricing schemes, clearance of rates, supervising /evaluation of gross revenues publicity activities, care of service criterion, co-ordination with Stationss to decide their jobs and widen full support / counsel to the Stationss in accomplishing assigned rider gross revenues marks.

Passenger Gross saless Division is headed by a General Manager and following subdivisions / Stationss study to him:

Regional Management

Competitive Analysis

District Gross saless Offices ( International )

District Gross saless Offices ( Domestic )

Marketing Support[ xiii ]

Regional Management:

Passenger gross is the major subscriber to the entire gross ( around 95 % ) of the air hose with the consequence that the map is divided into six cardinal districts. i.e. Americas, UK, Europe, Gulf and Saudi Arabia, Pakistan, South Asia and Far East & A ; Australia. Each district is being looked after by a Deputy General Manager ( DGM ) . Regional who is responsible for this map has been transferred to RM ) , productivity inducement strategies ( Travel Agents ) , tendency analysis, gross revenues public presentation, flight monitoring and merchandise consciousness. DGM Regional besides coordinates with the scheduling subdivision to efficaciously maximise aircraft use and to achieve capacity tonss as per the needed place factor for the district through scheduling subdivision. They are besides responsible to supply convenient connexions to their mark market maintaining in position rivals services. ( SPA map has transferred to Industry Affairs ) . DGM Regional is besides responsible for supplying support to their country District. They besides liaise with Brand Management for the supply of the needed promotional stuff at their country territory offices.[ xiv ]

District Office Management:

A territory office is responsible for pull offing gross revenues for a peculiar part. A District Manager is responsible for the overall working of this office and is responsible for accomplishing rider and lading gross marks assigned by the Head Office. She/he is normally supported by the Passenger Gross saless Manager and Cargo Gross saless. Manager for accomplishing rider and lading gross revenues marks severally.

District Manager is responsible for supplying client service and gross revenues support to Travel Agents and Commercial Houses through the gross revenues squad. He besides compiles gross revenues studies for the HO and proctors the gross revenues squad. DM is besides responsible to pull off installations at the District Office and keeps an active affair with travel agents of his/her part.

District Manager is normally supported by a PSM who is supported by a squad of Gross saless Promotion Officers.

She/he manages his gross revenues squad to bring forth optimal gross revenues by delegating single gross revenues marks to SPOs in carry throughing their responsibilities are responsible for the followers:

To do gross revenues name to go agents/corporate houses

PNR verification to help travel agents and corporate houses

To roll up name studies at the terminal of the twenty-four hours to give selling intelligence

To maintain path on flight profiling and exert excess attempts to make full in the weak flights

District Office besides has a ticketing office catering to the entrance riders, travel agents, & A ; groups etc. The DGM Marketing Support responsible for the overall working of office caputs the fining office. The fining Office caters to domestic/International ticketing demands. The Office normally has separate counters for Business Class riders, Travel Agents, senior citizens, PTA, and a menu desk.

A District Office normally has a pricing cell. The pricing cell provides airfares and handbills to agents and corporate houses. This cell besides assists enquiries from agents and corporate houses sing PK menus and those of other air hoses in instance of concurrence PK ticketing. Compiles SPA ‘s as attention deficit disorder on ‘s to PK menu construction for easy usage of PK offices and agents. Where the pricing cell does non be with the District Manager or his campaigner is responsible for go arounding menus

Rival Analysis:

At a Glance – comparing of PIA, Thai air passages and Emirates



Thai Airways


Head Office


Capital of thailand





A 122

Year founded


A 1960


Fleet Size




Company motto

A Great People to Fly With

A Smooth as Silk/ I Fly THAI

A Fly Emirates, Hello Tomorrow

Fly Emirates. Keep Discovering ( old motto )

Fly Emirates. To over 100 finishs

Fly Emirates, in six continents

Parent company

A Ministry of Defence ( Government of Pakistan )

Thai Ministry of Finance,

Thai Ministry of Transport [

The Emirates Group

*Data extracted from PIA, Thai Airways and Emirates functionary web sites.


Emirates is an air hose based atA Dubai International AirportA inA Dubai, United Arab Emirates. It is the largest air hose in the Middle East, runing over 2,500 flights per hebdomad, A from its hub at Terminal 3, toA 122 citiesA in 72 states across six continents. The Emirates name is considered to be a really powerful trade name name owing to the tallness of excellence and the fast growing it has achieved along with the consistent profitability.. In February 2011, A Air Transport WorldA gave Emirates Airlines the rubric of “ Airline of the Year ” for 2011. The award has been given based on acknowledgment of its committedness to safety and operational excellence, client service trendsetters, fiscal status including a 22-year back-to-back one-year net income.[ xv ]

Emirates is among the universe ‘s fastest turning air hoses ; A revenueA increased about US $ 100A million each twelvemonth.[ xvi ]

Emirates Vision and And Valuess

A strong and stable leading squad, ambitious yet calculated decision-making and ground-breaking thoughts all contribute to the creative activity of great companies. Of class, these have played a major portion in our development, but we believe our concern moralss are the foundation on which our success has been built. Caring for our employees and stakeholders, every bit good as the environment and the communities we serve, have played a immense portion in our yesteryear and will go on to determine our hereafter.

Thai Airways International Public Company Limited

Thai Airways International Public Company Limited is the national bearer of the Kingdom of Thailand. It operates domesti[ xvii ]degree Celsiuss, regional and intercontinental flights radiating from its place base in Bangkok to identify finishs around the universe and within Thailand. The is 53.77 % owned by the Ministry of Finance, the Thai Government. consolidated entire assets of the company amounted to 193,211 million Baht. In its operations, THAI has achieved profitableness every twelvemonth for the last 40 back-to-back old ages. The air hose has 90 aeroplanes in service presently. From its hub atA Suvarnabhumi Airport, THAI flies to 71 finishs in 35 states, A

Thai Airways International was founded in 1960 as a joint venture between Thailand ‘s domestic bearer, Thai Airways Company ( TAC ) and Scandinavian Airlines System ( SAS ) with the Scandinavian bearer ab initio supplying a 30 % portion capital of two million Baht. SAS besides provided operations, managerial and selling expertness, with developing aid taking at constructing a to the full independent national air hose within the shortest possible clip. Thai subjects, through preparation and experience, were bit by bit able to presume full managerial duty and the figure of expatriate staff duly reduced until, in 1987, expatriates accounted for less than one per centum of staff based in Thailand.

The listing of THAI portions was commenced on July 19, 1991. By change overing maintained net incomes into capital and increased its portion capital upon the Cabinet blessing, THAI registered portion capital has risen from Baht 2,230 million to a sum of Baht 14,000 million. This has made the entire sum of THAI portion naming to be the largest in the history of SET. Furthermore, THAI public offering of portions is the individual largest one of all time undertaken in Thailand.[ xviii ]


The First Choice Carrier with Touches of Thai.

Fiscal Analysis

At a Glance

Income statement comparing of PIA, Thai air passages and Emirates in U.S. $



Thai Airways



A 1,333.4


A 16879.9

GROSS Net income

A 54.7

A 1,069.9

A 13313.3


A 182.7

A 1,084.3



A -128.0

A -14.4

A 350.1

Net Interest Expense

A -102.9

A -160.9


Net Income

A -271.7

A -331.8

A A 40.5

*Data extracted from Business hebdomad Financials for PIA and Thai air passages and Emirates annually published one-year fiscal studies 2011.

At a Glance –

Balance sheet comparing of PIA, Thai air passages and Emirates in U.S. $



Thai Airways



A 40.0


A 16879.9

Sum Receivables


A 553.0

A 13313.3


A 217.2

A 1,931.8




A 5,985.5

A 350.1


A -1,878.6

A 8,941.4



A 1,116.3


A A 40.5


A 2,687.8

A 6,874.7

A 350.1



A 2,066.7



A 1,878.6


A A 40.5

*Data extracted from Business hebdomad Financials for PIA and Thai air passages and Emirates annually published one-year fiscal studies 2011.

Emirates Financial Position

In the fiscal twelvemonth 2011-12, Emirates generated grosss of around AED 62 billion, which represented an addition of about 15 % over the old twelvemonth ‘s grosss of AED 54 billion. Passenger Numberss besides increased from over 31 million to around 34 million over the same period stand foring an addition of around 8 % . In the fiscal twelvemonth 2009-2010, rider Numberss reached 27.4A millionA up from 22.7A million reported in 2008-09 stand foring an addition of 20.1 % over the old twelvemonth. Cargo carried in 2009-10 besides improved, by 12.2 % to 1,580,000 metric tons ( 2008-09: 1,408,000 metric tons ) .A The air hose ‘s net incomes for the 2009/10 financial twelvemonth rose by more than fourfold to AED 3,538 million ( $ 964A million ) up by AED 2,852A million ( 2008-09: AED 686A million ) on the dorsum of cost film editing and a about 21 percent rise in passengers.A Its parent company saw net income up 248 % for to $ 1.1A billion for the twelvemonth to 31 March compared with a $ 406m net income for the old twelvemonth. The air hose claims it pays market rates for its fuel, contrary to common belief, nevertheless it has a extremely successful fuel-price-hedging plan.[ xix ]

As of March 2012, Emirates does non utilize fuel monetary value hedge. Fuel is 45 % of entire costs, and may come to $ 1.7 billion in the twelvemonth stoping 31 March 2012.[ xx ]

The air hose was theA seventh-largestA air hose in the universe in footings of international riders carried, and theA largest in the universe in footings of scheduled international passenger-kilometers flown. It is besides theA seventh-largestA in footings of scheduled freight tonne-kilometres flown ( 6th in scheduled international cargo tonne-kilometres flown ) .

PIA fiscal place

The fiscal public presentation for FY 2011 continues to be a challenge with an after revenue enhancement loss of PKR 26.767 billion. This was preceded by six back-to-back loss doing old ages dating back to 2005. The air hose did describe a decrease of station revenue enhancement losingss of 83 % in 2009 ( compared to 2008 ) based on a decrease in fuel cost, relatively stable exchange rate for the Pakistan Rupee and higher grosss. But in 2011 & A ; 2010, losingss once more rose aggressively compared to the old old ages.

The air hose faces many challenges to its profitableness such as staffing degrees and overall direction issues. An employee count of 18,014 for a fleet of 40 aircraftA is clearly an country that needs to be reviewed.

The study for the first one-fourth of 2012A does non demo any betterment. The after revenue enhancement losingss reported for the first one-fourth of 2012 are PKR 7.81 billion as compared to PKR 4.24 for Q1 of 2011. Gross is besides reasonably much stagnant at PKR 26.44 billion for the first one-fourth of 2012 compared with PKR 26.18 billion for the first one-fourth of 2011.[ 1 ]

The last 3 old ages have shown a uninterrupted loss for PIA on the sale of their assets. 2011 marked a 65.7 PKR Million loss on the assests sold. Operating disbursals for PIA have continued to lift for PIA and were at 17,467.7 Million PKR for the twelvemonth which ended in 2011.

Pakistan International Airlines Corporation may hold more fiscal hazard than other companies in the Airlines industry as it is one of the most extremely leveraged with a Debt to Total Capital ratio of 196.70 % . This ratio really increased over the last twelvemonth. Additionally, an scrutiny of near-term assets and liabilities shows that there are non plenty liquid assets to fulfill current duties. Histories Receivable are typical for the industry, with 25.38 yearss worth of gross revenues outstanding. Last, stock lists seem to be good managed as the Inventory Processing Period is typical for the industry, at 11.60 yearss.[ 2 ]

Current assets for PIA have besides decreased between 2010 to 2011. At the terminal of 2011 it stood at 20,819.1 Million PKR. Good will for PIA has shown an addition nevertheless over the last 4 fiscal old ages for the company. At the terminal of 2011 it was calculated at 2,821.1 Million PKR. The long term investings for PIA have besides decreased and therefore hold dropped down to 86.1 Million PKR for 2011.

Histories collectible is valued at 15,619.2 Million PKR in 2011, a crisp rise to what it was in 2008. The long term debt for the company has besides increased and was 55,559.5 Million PKR in 2011.[ xxi ]

Thai Airways

Thai airways gross for the FY 2011 was THB 192,936.8. this is an addition from the last 2 old ages nevertheless, in 2008 it was higher than this at 201, 739.1. Operating disbursals for the air hose has dropped to THB 33,322.7. this is good for the air hose as it has reduced its disbursals and therefore will salvage the air hose money.

Gross net income for the air hose is at 32,881.0 for FY 2011. This is a drastic lessening sing the last 2 old ages. It shows that the air hose has had good FY 2010 and 2009 nevertheless due to the rise in Cost of Goods Sold from 138, 763.1 in 2010 and 116.943.6 in 2009 to a addition to 160.055.8 in 2011.

Year over twelvemonth, Thai Airways International Public Company Limited has seen their bottom line shrink from a addition of 14.7B to a loss of 10.2B despite an addition in grosss from 180.6B to 191.0B. An addition in the per centum of gross revenues devoted to cost of goods sold from 76.84 % to 83.80 % was a cardinal constituent in the falling bottom line in the face of lifting grosss.

Although debt as a per centum of entire capital increased at Thai Airways International Public Company Limited over the last financial twelvemonth to 69.17 % , it is still in-line with the Airlines industry ‘s norm. However, there are non plenty liquid assets to fulfill current duties. Cash Collection is a strong suit as the company is more effectual than most in the industry. As of the terminal of 2011, its ungathered receivables totaled 16.6B, which, at the current gross revenues rate provides a Days Receivables Outstanding of 32.18. Last, stock lists seem to be good managed as the Inventory Processing Period is typical for the industry, at 16.74 yearss.[ xxii ]


PIA needs to better its services and quality in order to derive client satisfaction. Customer satisfaction plays a really of import function in hiking the grosss and presently client satisfaction with PIA is really low. Services scope from the seating in the aircraft to the nutrient provided onboard every bit good.

Repute of PIA is conveying down the grosss as good. The flight cancellations and holds are besides a hinderance to the clients as good and therefore they resort to other air hoses to go. Having a flight which leaves on clip can really assist hike client morale sing the air hose in the hereafter when they need to go.

A°t besides needs to put in advertisement so that clients are cognizant of the trades and publicities and the clients are non kept in the dark any longer as PIA will be the 1 who will in the terminal bear the brunt of it as travelers will go on to switch to other air hoses they will believe fulfill their demands more suitably.

PIA besides needs to better the preparation of its crew and come up with an luxuriant preparation system as through my research I saw that clients were non satisfied with the hospitality/customer service facet of PIA.

Onboard amusement really needs to be improved excessively as on long draw flights the amusement system is something that keeps the clients busy and therefore through my research it can be seen that the amusement provided upon PIA flights is non at par with those on other air hoses.

The image of PIA besides needs to be improved. It is non percieved as a safe air hose to go on and this needs to be corrected. This can be done by replacing its fleet and integrating new province of the art aircrafts into the fleet. The flight operations besides need to be improved as well.A TheA EngineeringA section can be improved every bit good.

By offering installations like e-check in, precedence cheque in, free ticket delievery etc which are offered by other air hoses PIA will be able to recover some of its market portion therefore giving a encouragement to the grosss.

Offer services that will outdo suit the demands of the consumers and offering economical menus given that there is a recession and people are moreA witting about where they spend their money and how much.

Paths of the air hose demand to be improved every bit good as presently PIA is non winging to many metropoliss as there rivals are. Passengers who want to wing PIA are unable to as PIA does non provide to their coveted metropolis of travel so. Therefore they resort to other air hoses as good.


I'm Niki!

Would you like to get a custom essay? How about receiving a customized one?

Check it out