Brand Management

Pakistan International Airlines

INTRODUCTION:
When Pakistan was founded in 1947 it comprised two territories on either side of the expanse of India. It was in this unusual circumstance 1955. that Pakistan and International was formed in Despite wars economic trouble, the carrier survived to grow and prosper. Pakistan International Airlines is the flag carrier airline of Pakistan, based in Karachi. It is the 16th largest airline in Asia, operating scheduled services to 73 destinations throughout Asia, the Middle East, Europe and North America, as well as an extensive domestic network linking 24 destinations. Its main bases are Jinnah International Airport, Karachi, the Allama Iqbal International Airport, Lahore and the Islamabad International Airport, Islamabad/Rawalpindi. The airline also has secondary bases, including Peshawar International Airport, Faisalabad International Airport, Quetta International Airport and Multan International Airport, from which it connects the metropolitan cities with the main bases, the Middle East and the Far East. The airline is owned by the Government of Pakistan (87%) and other shareholders (13%). It has 19,263 employees.

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AIRLINE INDUSTRY IN PAKISTAN

There are 36 operational airports. Karachi is Pakistan's main airport but significant levels of both domestic and international cargo are also handled at Islamabad and Lahore. Pakistan International Airlines (PIA), the public sector airline, though facing the competition from a few private airlines, carries approximately 70 percent of domestic passengers and almost equal domestic freight traffic. The transportation sector accounts for about 10.5 percent of the countrys GDP and 27.4 percent of Gross Fixed Capital Formation (GFCF) in FY06. It provides over 6 percent of employment in the country and receives 12 to 16 percent of the annual Federal Public Sector Development Program (PSDP). Government agencies dominate the sector.

HIERARCHY OF PIA
This organization is divided into following departments: Human Resource and Administration, Marketing, Corporate Planning, Information Services, Finance, Flight Services, Flight Operation, Engineering, Procurement and Logistics, Customer Services, Training and Development, Quality

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Assurance. The organ gram of the organization follows, with the Chairman at the top and directors of departments reporting to him. The structure is centralized with the top-level management making the decisions.

CORPORATE VISION OF PIA

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To be a world class airline exceeding customer expectations through dedicated employees Committed to excellence.

CORPORATE MISSION

As a Symbol of National Pride, We Aspire to be a Choice Airline, Operating Profitably on Modern Commercial concepts and Capable of Competing with the Best in the International as well as Domestic markets.

VALUES Customer Expectations

PIA is the most trusted name in the industry. The reason of its goodwill is according the expectation of their customers that PIA has fulfilled always. By providing competitive tariff, extensive care, and convenience to their valued and potential customers

Service
PIA aims at providing valuable and unique services to its customers. They are more personalized and courteous to their customers. The services are valuable and rare; this is the reason why customers trust PIA.

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28 Nov 2004, Pakistan International Airlines - PIA passed the IATA Operational Safety Audit (IOSA) benchmark for global safety management The IATA Operational Safety Audit (IOSA) is the benchmark for global safety management in airlines KARACHI, 22 October 2007 Abacus Pakistan officially launched Abacus Travel

Secure with AIG, providing local travel agents and travelers easy and convenient access to AIGs travel insurance policies. Available for the first time in Pakistan, Abacus Travel Secure brings real time and immediate activation of travel insurance policies to the Pakistan travel industry with a more streamlined and time saving application process for travel agents 6.3) Innovation: PIA currently has a number of 43 fleets and aims at increasing this numbers to 53 by the next few years.PIA is adoptive to changes and believe in innovation thats create new ideas and translating these ideas into action.

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Reliability
PIA is the most experience airline with its service with more than 53 years. This has built in PIA has become the most reliable airline. PIA is known for its loyalty and consistency.

Safety
The most challenging responsibility of any organization is to provide complete satisfaction to its employees and customers together. This satisfaction rewards favorable and easy working conditions. The in-flight services are customers friendly and the organizational the organizational environment is also employees oriented.

Cohesiveness
PIA has 12 departments working in their own direction and also provides a number of services including speedex courier service, catering etc. The most impressive part is these all department and services are integrated in a cohesive way.

Brand Detail
Fleets
PIA's fleet of modern aircraft is spacious, comfortable,

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and designed to get you to your destination safely. PIA operates a range of advanced aircraft, ranging from the world's preferred Boeing 777 airplane to the super-quiet Airbus A-310. Currently PIA has 42 aircraft in its fleet.

In-flight Dining
You're in For a Special Treat!
Whether you are traveling within Pakistan or around the world, PIA's in-flight dining menu is sure to tantalize your taste-buds. Enjoy the best of what Pakistan has to offer, as well as a delectable selection of international cuisine.

In-flight Entertainment
Let the fun begin!
Aboard a PIA flight, there is so much to do that you really won't feel like landing. Movies, Music, Games, Duty-Free Shopping, Tourist Information, Maps, and Real-Time Flight Information will keep you entertained for hours.

PIA offers two types of services.

Business Class Economy Class

Business Class
Its the only Business Class service that feels like First Class. A comfortable seat makes all the difference on a long flight. PIA's Business 7|Page

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Class Seats elevate the concept of luxury to a new level, fully endorsing your decision to choose PIA Business Class Sit back and relax in our exclusive Business Class Lounges at the Karachi, Lahore, and Islamabad airports.

Our hospitable staff will ensure that you're well looked after during your stay with us at the airport Business Class passengers arriving at Airport will receive a warm welcome from PIA. Our representatives will walk you right through all the arrival formalities so that you don't have to stand in line or worry about clearance.

Economy Class:
PIAs economy class is also comfortable for passenger as Business class. Economy Class offer seats with a 32-inch pitch, adjustable footrests and "winglet" headrests for improved neck comfort. The personal TV provides on-going entertainment including audio and video on-demand choices. Passengers enjoy the same caring service from our flight attendants, along with skillfully prepared meals and a wide range of in-flight entertainment options to choose from. Free newspapers are also provided to all Economy class passengers. The PIA in-flight magazine, Hamsafar, is provided to all passengers on all international flights. Humsafar was introduced on PIA flights in 1980 and it is published bi-monthly.PIA is providing its service in twenty-five cites of Pakistan domestically which are as follows: Giigit Chitral Skardu Saidu Sarif 8|Page Islamabad Peshawar Sialkot D.I,Khan

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Lahore Faisalabad Multan Zhob D.G.Khan Quetta Bahawalpur Rahim Yar Khan Dalbandin Sukkar Panjgor Sukkar Jacoababad Turbat Moemjodaro Gwadar Pasni karachi

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Brand Philosophy
PIA committed to international safety standards for airlines
The passenger and airline safety is primary and strictly maintained in operational matters at any cost. PIAs Certification by International Organization for Safety Audit (IOSA) confirms that the airline operations are safe. Ensuring passenger safety the airline was also providing a safe working environment to its employees with all requisite tools and equipments. PIA Flight Safety and Quality Assurance Division, Civil Aviation Authority, IATA Pakistan, Aga Khan University Hospital and NHR Human Resource consultant made illuminating presentations on Safety Standards.

Stakeholders
The main Stakeholders of PIA is its

Employees
employees of the PIA have to be made stakeholders in the organisation to make it a profitable entity. Employees are the key stakeholder of the PIA to improve the efficieny of the brand.

Government
Government policy directly effect the PIA becuase all the rules and regulation for PIA made by the government and they should be responsible for the outcomes of these policies.

Passangers Passangers are the key element for PIA because all the jobs which is done by PIA , is for their passangers. So PIA should satisfy their main stake holder by giving the splended services to them.

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Civil Aviation Athorithy

CAA design the flight inspection services and routes for the PIA. It can effect as a stakeholder because CAA charges for its services.

Corporate Branding
Corporate branding is the practice of using a company's name as a product brand name. It is an attempt to leverage corporate brand equity to create product brand recognition. It is a type of family branding or umbrella brand.

Branding Program
The branding program of P.I.A is,

The Local Agents Serving Main Street America

Local Agents
Thats what PIA members are. Professional Insurance Agents who are members of their communities. But PIA members are more. PIA members are friends who help their neighbors protect what they value most: their homes, their automobiles, their businesses, their assetstheir very way of life. PIA members provide their neighbors with personal support and service, plus a choice of insurance products to meet their needs. Not from just one company, but from many quality insurance companies that support Americas independent agency distribution system.

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Serving Main Street America

Main Street is more than a location. Its an attitude. Its where PIA members do business. Main Street is where our heart is, and its where our customers want to do business. Why? Because people prefer to deal with someone they know and trust when it comes to protecting what they have worked so hard to achieve.

The opportunity
PIA is an association thats dedicated to providing unlimited opportunities for its members. Thats the way its been since 1931. PIA members are already well-known in their communities. After all, they are local agents. PIA members are sponsors of the local Little League team, volunteer fundraisers for a host of local charities and active members in many local civic organizations. When theres a crisis, PIA members help their neighbors. When theres a need, PIA members are there.

And people know that when they need help to insure their home, their autos, their businesses their way of life its best to go to someone they already know and already trust: their neighborhood Professional Insurance Agent.

A new brand, not a new identity

The PIA Branding Program does not attempt to create a new identity for PIA members. PIA agents dont need a new identity. They already have one. Their customers know who they are. They are Professional Insurance Agents. Theyre local and they care.

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The PIA Branding Program, Local Agents Serving Main Street America (SM), simply extends the reach of that already-established identity with a coordinated, high-quality advertising and promotional campaign that highlights what Professional Insurance Agents bring to the table. The goal? To attract new customers. To write more business. To make more money and increase market share for PIA agencies and their carrier partners. To ensure that the independent agency distribution system continues to prosper, now and in the future

Brand as Relationship
We saw in the past that PIA brand was very famous in the country because people saw it as Pakistani brand and they like to fly with PIA. This relationship like all others is based on trust, the fulfilment of promises and common values, There was some patriotic behaviors involve in it but over time the brand relationship changes as needs and attitude of the customers change and this happened with PIA..PIA around the globe continue to worry about customer retention. It has been taking steps to improve, rather than just monitor, the strength of its customer relationships. That's because PIA realize that customer attrition is costly. With the passage of time our government allowed other air lines to offer their services in our country, they were innovated with new ideas & technology. They provide batter services than PIA, now peoples thinking about this brand has been changed they are thinking that PIA is not improving their services.

The Brand Pyramid

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Mark of Specification
At this lowest level PIA is simply identifying mark to distinguish the brand from alternative. At some level PIA is very unique from its competitors like its number of flights is more than any other company operating in Pakistan.

Mark of Assurance
At this level PIA become more than a mark of specification, it becomes a mark of assurance. PIA maintain a minimum standard of quality by reaching timely on the desired destinations, and provide the good foods qualty to the passangers.

Moment of Chioce
Moving in up another step, the brand starts to represent moments of choice. In domestic market when people want to move from city to another they choice the PIA for traveling. It shows PIA brand becomes associated with a choice and its more likely to be purchased.

Mark of association
At the next step, the brand provides a mark of association, a badge of a club that the individual wants to be associated with. Here the purchaser is starting to make some form of emotional connection with the brand and to use the brand to establish a self-image to other people. In this level PIA is not so successful and they are trying to enter in mark of association. Most passengers in Pakistan not associate themselves with PIA but efforts are being made by PIA to influence the people to connect themselves with PIA.

Emotional involvement
In the past PIA was much more emotionalenvolvement of the passangers with its brand but now there is no emotional envolvement of the people with PIA. Now people are emotionaly ready to associate themselve with PIA.

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Brand As Icons & Symbol

The symbol of PIA is written in Urdu as well as in English. So we can easily judge this brand. But more often with the passage of time they changes their symbol so t1he customer feel uncomfortable, this change has been disturb customers psychologically.If we talk about human psyche when we look at any symbol it saves in our long term memory but when we rapidly change it, it can create confusion for customers.

Comments about Symbol of PIA

Mr.Usman Commented on www.historyofpic.com The frequency with which PIA changes its livery is mind boggling! Someone needs to investigate the reason! PIA is a poor airline which can hardly afford to replace planes before one crashes! As per my calculation PIA has had a livery change in 1979 , 1990, 2001, 2004 (flag was replaced) and now again we are talking about a change. Just look at Air France, SIA, Emirates, Quantas, KLM, Lufthansa, they all retain their "winning corporate image" and I am seeing the same livery (with very little variations) since my birth 30 years ago! As for PIA's current livery, I know that the aircraft were wrapped into Khakii colour and Pak flag by the military government to make the aircraft look more like a Pak army plane! Had the military government stayed longer, the next PIA livery would had been a green, brown camouflage all over the body with two swords added beneath the tail flag!! Secondly, there is a tremendous resemblance with EL-AL livery! Looks like a copy paste! Can't we have an innovative idea. Earlier SAS had objected to our Green striped livery of the 1990s! I had an issue of the Airline Transport Magazine in which it was reported that "PIA has mimicked Air India by introducing floral design on its tail"

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Mr.Zee757 Commented
It is not a matter of pride. EL-AL livery is so strikingly similar to PIA that it irritates me. Secondly, I was aghast when PIA bought the flag on the tail. It looked a nationalistic symbol ! Come on PIA is a commercial airline! The green tail with PIA written was its brand image! PIA should had retained traditional dark green with golden inscriptions with innovation! I remember strolling in Kuwait airport lounge in the early 80s and peeping into each lounge (I remember they had seperate lounges for each gate unlike the one huge lounge now in most airports) and the most amazing sight of a green PIA A300 flashing lights at night slowing to park right in front of the huge screen! The dark black cockpit screen made it even more dashing! Nostalgia!!! It looked awesomely magnificient or was I overtaken with national fervour because an Air India B707 was parked next to it!

Brand as identifier

Brand identifiers are logos, stylized text or unique features that help identify one item from another. Shown in the pictures of different brands, PIA changed its brands colors, style & slogan while others brands use very unique type of Text style & colors so that people can identify it within no time.

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Brand Performance Measure

Brand performance is basically worth of the brand, image of the brand, power of the brand and how people perceived that brand and its about the growth of the brand. If we talk about the brand performance of PIA, when PIA launched newly in Pakistan its brand performance was very positive and it was one of the profitable brand In Pakistan in 80s. To integrate this brand, management invoke it to create its worth and performance. Now situation has been changed, at one side our government has allowed many airline companies to serve their services in Pakistan and on the other hand they dont have any plan to improve the image of this brand and performance. Competition is growing intensively day by day but they dont have any plan to compete in this competition.

Changing Names
We cannot change its name because many Pakistanis have been accustomed to it. Yes, we have some plans to change color, design and font style.

Brand and Line Extensions PIA Speedex

In the 1970s, Pakistan International Airlines pioneered the express delivery of shipments across Pakistan. The Air Express service delivered documents and parcels from one airport to another, ushering in the dawn of the courier industry in Pakistan.

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In 2003, PIA expanded the scope of Air Express and launched a full-fledged courier service, and PIA Speedex was born. Initially serving Karachi, Lahore, and Islamabad, PIA Speedex grew rapidly and another 12 major cities were added to the network. Today, PIA Speedex offers premium courier services in 70 cities across Pakistan, and shipments are collected from and delivered to the doorsteps of our customers. Capitalizing on PIA's cutting-edge information technology infrastructure, PIA Speedex pioneered the online tracking and tracing of shipments in Pakistan, enabling customers to track the status of their parcels at each transit point, until delivery. A range of delivery options also catapulted PIA Speedex to the position of a credible and reliable industry leader, giving customers flexibility and choice at highly affordable rates. PIA Speedex will soon branch out into the international marketplace, offering customers a unique mix of speed, reliability, and affordability.

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 unique distinction of introducing Pakistan's fruits to international markets and pioneered the exports of fresh fruits and vegetables to global destinations. Operating as the air freight division of Pakistan's national carrier, PIA Cargo has achieved rapid growth and reaches out to destinations spanning the globe through its passenger scheduled flights and freighter services. PIA Cargo earns valuable revenue for Pakistan International Airlines and provides a massive boost to Pakistan's wide spectrum of exports. The aggressive growth of PIA Cargo coupled with PIA's rapidly expanding passenger operations empowers customers with a range of cutting-edge cargo products and services. In addition to offering cargo services, PIA Cargo also arranges charter flights to lift meat, livestock and relief goods within and outside Pakistan.

PIA Engineering
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Engineering Solutions for a Quality, Safety, and Cost Conscious Aviation Industry PIA Engineering is an established Aircraft Maintenance and Repair organization that provides world-class solutions to the aviation industry. PIA's Engineering Base, head-quartered at Jinnah International Airport, Karachi, is acclaimed as one of Asia's best. Strategically located for the convenience of airlines whose operations extend to Asia, it is equipped with the most advanced, modern aircraft maintenance and overhaul facilities and is manned by a team of highly trained personnel.

Life-Cycle Management; Rejuvenating & Retiring brands

The three stages of the brand life cycle are the introductory period, during which the brand is developed and is introduced to the market; the growth period, when the brand faces competition from other products of a similar nature; and, finally, the maturity period, in which the brand either extends to other products or its image is constantly updated.

Pakistan's PIA is back. In Black

Pakistan International Airlines has an amazing history. It was, through the 50s, 60s and 70s, perhaps Asias leading airline. These were the days of Pierre Cardin designed uniforms, amazing ads, trail blazing destinations PIA was one of the worlds first non communist airlines to fly to Beijing and unparalleled service. Starting in the 70s, though, things began to change. PIA was taken over by less than competent management. The global airline scene became far less friendly, new regulations, security and political considerations made life difficult for passengers and oil prices have, more recently, become an excuse for most airlines to reduce levels of service. PIA has not been immune to any of these unwelcome changes. And if that wasnt enough, with Pakistans Open Skies aviation deregulation policy, which was initiated almost 15 years ago, PIAs exclusivity as the only airline operating in Pakistan was

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no more. This was certainly good for Pakistan and the aviation industry in general, but not so much for PIA. A slew of new names hit the scene; Shaheen, Bhoja, Aero Asia, Askari, Royal Airlines, Schon Air, Princely Jets (charter), Air Blue and others. With increased competition on domestic and international routes and a slide into mismanagement PIA was not doing well. In particular, over the last 5 years, PIA has been posting losses consistently. After the departure of the last Managing Director, PIAs Board decided to take a completely different approach. Rather than positioning a bureaucrat with little or not experience of the industry, or transplanting someone to whom PIA would have been completely alien, the Board decided to appoint a former PIA Captain, M. Aijaz Haroon to the position of MD. The appointment, back in May 2008, was not without critics who claimed that it was Mr. Haroons connections that had enabled him to outdo others in the running. In just under a year, though, Mr. Haroon has proved his critics wrong. This morning, news came out that Pakistan International Airlines is expected to post a profit for the first time in 5 years!

A PIA press release said

The [board] meeting approved the budgetary provisions for 2009 including projected Revenue of Rs.121 billion and after tax profit of Rs.600 million. PIA, is in fact, going through a major overhaul. After the successful integration of the first Boeing 777-LR aircraft, the worlds longest range planes, PIA has added a total of 9 Boeing 777 ER and LRs and is scheduled to add another very soon, concluding the order for 10 777s placed with Boeing. PIA is scheduled to further grow the fleet with an order for 7 new Airbus A320-200s placed in mid 2007.

PIA's image is undergoing an overhaul

All these aircraft come with interiors and capabilities that airlines like Emirates and Etihad have made essential. Be it the Linux-powered inflight entertainment system or the in-cabin gaming and communications. Not content with rejuvenating the fleet alone, PIA is also adding new destinations; something it hasnt really done in a while. The airline has

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already announced the addition of Barcelona as a PIA city. Flights are scheduled to commence in March 2009. Dublin is another new destination the airline has already moved to include in its network, and finally Stansted, UK, an ex-PIA destination will be restored soon. We wish PIA and its new management the best of luck! They have started to move in the right direction in restoring profitability and resolving many of the employee issues. We look forward to the time when PIAs erstwhile position as Asias number one airline is restored.

WE WISH PAKISTANIS GOOD LUCK WITH RESTORING THE OLD PIA GLORY!!!!

Corporate Social Responsibility

Social Services Reaching Out to Help IDPs

PIA is committed to extend a helping hand, to distressed communities of society, whenever needed. PIA believes in contributing for the betterment of society by, working for and learning from the experience of, setting unprecedented examples of cooperation and support. In view of the disturbances in the northern part of the country, millions of people were constrained to leave their homes and dwell in camps set in peaceful areas. To address the suffering of these distressed persons including a large number of children needed both tangible and emotional support. At these crucial moment PIA risen to the needs of the nation and decided to activate its Emergency Response Centre for collecting Relief Goods for onward dispatch to the people in distress in an efficient and transparent manner. Various individual contributors, institutions and welfare bodies from different parts of the world also availed this wonderful service from PIA. Collection centers were established in Karachi, Lahore & Islamabad and more than 300,000 Kgs of relief goods were transported

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Boy Scouts Association

The PIA Boy Scouts Association (PIA-BSA), a provincial segment of the Pakistan Boy Scouts Association, is based on the value system of the Scout Promise and Law. The PBSA's mission is to actively train and develop members through Youth Training Programs. Scouting contributes to the education of young people and helps build a better world where individuals can play constructive roles in society. The PIA-BSA's major contributions include providing Haj services at domestic and Saudi Arabian airports, engaging in activities with the Heritage Association of Pakistan, assisting special children at PIA's Al-Shifa Trust, and participating in a number of health, cleanliness, literacy, tree plantation, drug prevention, and blood donation drives. The PIA-BSA has also started a cricket academy where thousands of youth have received cricket coaching from PIA's renowned test and first-class cricketers. Following the earthquake tragedy of 8th October, 2005, the PIA-BSA immediately deployed contingents in Islamabad followed by scout deployments in Balakot, Garhi Habibullah, Muzaffarabad, and Bagh where relief goods were distributed and emergency services were rendered.

PIA Planetariums
Through a combination of projectors, optics, electronics, and precision engineering, PIA offers a range of cosmic experiences to the Pakistani people. The PIA Planetariums enable the viewing of virtual universes, replete with stars, planets, and nebulae and visitors throng the planetariums to look at astronomical phenomena such as eclipses, alien landscapes, planets, and the sun. PIA is the only airline in the world to have invested in an innovative and educational planetarium project that is open to the general public at affordable rates.

PIA Horticulture
Plants and trees provide habitat, shelter, food, materials and medicines to human beings and animals. Realizing the significance of a healthy and pollution-free environment, PIA set up a horticulture division in 1996. In addition to maintaining indoor and outdoor plants and trees, PIA Horticulture provides seasonal flowers for display in PIA's offices and for a range of events, winning several awards and accolades at flower exhibitions across the country. To reduce pollution and contribute towards a greener Pakistan, PIA Horticulture actively participates in tree plantation campaigns during each spring and monsoon season.

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Support for Non-Profit Organizations

As a responsible corporate citizen PIA has a special social commitment which it takes very seriously. PIA is engaged and actively supports various social projects. As part of its corporate social responsibility initiatives, PIA fully sponsors Al-Shifa Trust, which provides relief and rehabilitation services to special children suffering from cerebral palsy and other motor disorders. Besides this, PIA has been providing help to charities and trusts.

PIA Employee Health and Medical Services

The health and welfare of our employees has always been a matter of utmost importance and significance at PIA. All employees are provided with a comprehensive medical package, in collaboration with reputable hospitals, diagnostic labs, and medical institutions. In 1959, PIA established a Medical Division to supply wide-ranging medical coverage to active and retired employees. To ensure that the highest standards of aviation are maintained, a Crew Center periodically carries out air crew checks, in conformity with international and Civil Aviation Authority standards. PIA's medical facilities cover the parents and spouses of serving employees, children up to the age of 27, unmarried daughters, and disabled, mentally challenged children of any age. Retired employees and their spouses are also eligible for medical care at PIA's Medical Centers. In addition to coverage in Pakistan's major cities, PIA has extended its medical network to 35 smaller stations, in collaboration with private and public sector hospitals. PIA also looks after its overseas employees under the Local National Health Scheme and Insurance Schemes.

Emergency Response Planning

Passenger care is an airline's most crucial responsibility. Acknowledging the significance of Emergency Response Planning (ERP), PIA has set up a discrete section to handle emergencies. The Emergency Response Planning Section has developed an Emergency Response Manual and manages Emergency Response Center Teams, Field Teams, Family Assistance and Support Teams, and Volunteers. The ERP Section also trains volunteers in the areas of aircraft emergencies, rescue, basic first aid, and fire fighting to effectively respond to natural disasters.

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Emergency Response Facilities include the computerized data storage of teams and volunteers with an automated emergency call out system. This software application also provides a technology supported callback system for contacting families of the affected. PIAs Emergency Response Planning Section hopes to contribute meaningfully towards national capacity building in the area of emergency management, through financial and human resource investments.

PROBLEMS AB0UT PIA

PROBLEMS
We observe various problems which PIA is facing or employees are facing, so we came up with certain suggestions for the better functioning of the Airline. Some of these problems are of such nature that their solution will help the Airline and its workers in cooping in this complex world of globalization.

These problems are

1.
Employees are not satisfied about the Promotion procedure and merit is not encouraged. Chairman of PIA should always be appointed from with in the organization. PIA hasnt a good marketing strategy for certain international routes where PIA was facing financial losses. PIA is operating with Old aged fleet which is causing financial burden on PIA as PIA still has 4- engine Boeing 747 which now is known as gas guzzler as its has highest operating cost and the profit generating Saudi Arabian route is now being operated in loss. Passengers are not satisfied about the refund process as it was time consuming.

2. 3.

4.

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5. 6.

PIA have highest employee ratio to per airplane which is a huge financial burden on PIA. Complaint of Employees as they are not properly facilitated comparing to the other airlines.

RECOMMENDATIONS FOR PAKISTAN INTERNATIONAL AIRLINES a) Decentralization:

We should decentralize its structure that would lead to the easy management, increased motivation, easy access to information and resolution of the conflicts as they would be resolved by the immediate manger time span would then reduced. Since employees issues regarding their behavior would lessen, so it would ultimately lead to more satisfied employees that would result in enhanced productivity of the organization.

b) Strategic Business Unit:

We should make its different departments into Strategic Business Unit. Every SBU should have a defined business strategy and a manager with sales and profit responsibility. As PIA is a large organization, so it must be convert into SBUs.Different factors should be determined for the success of SBUs which as follows. The degree of autonomy given to each SBU manager. The degree to which an SBU shares functional programs and facilities with other SBU'sThe manner in which the corporation evaluates and rewards the performance of its SBU managers.

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c) Transparent policy adoption:

We should adopt transparent policy that employees should be promoted on merit basis. And Chairman of PIA should be appointed from with in the organization. Union should support it, it will motivate the employees and PIA will grow in profit. We should not induct new employees till the time they are needed. A task which can be performed by single person PIA has 3 employees for that we will try to downsize our management. PIA should give bonus to the industrious and competent employees.

d) Employee Empowerment:
we should make efforts towards empowering the employees that is going to lead to more employee participation in the decision making process and also result in more employee satisfaction and enhanced motivation. Apart from this, employees would feel more independent to discuss the issues explicitly without hesitation. This would also enhance team work process at PIA as quality team and cross-functional teams. The employees will work with more commitment and dedication and every employee would work to his/her fullest due to increased motivation. However, with empowerment comes accountability, so it is suggested that while they empower their employees, there should also be a controlled check on them to ensue the correct usage of power delegated to every employees within their circumscribed limits.

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e) Overhead Costs:
We should also reduce its overhead costs that are; it should mange its resources: labor more effectively, so that with less input, more out put can be achieved and the saved resources can be utilized in other areas such as introducing more training courses for the employees so that the quality of the workforce could be increased. Hiring the services of expertise can improve the efficiency of their services, so by saving the overhead costs, we can utilize that money for the expertise services. So by analyzing the various segments of the organization and making the right corrections, it can substantially improve the standards of Organizational behavior.

f) Marketing policy:
We should adopt good marketing policies so that it will bring higher profit and maximum utilization of its available resources, Business sector should be attracted to operate at full potential.

g) Two-Way Communication:
The suggestions of the employees can prove to be very effective in improving the operations, as they are the ones who manage them. Therefore, a topdown approach should be replaced with two-way communications. In this way, the employees would feel motivated and valued, as they would be included in decision-making

h) Total Quality Management:

Total quality management should be catered to within the work groups and implementation of various skill enhancement programs for quality and productivity improvements such as Six Sigma should be provided to its executive employees.

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Comparison of PIA with Different Airlines

Attributes Destinations Punctuality Quality Food Customer service Economical Technological Advancements Services Corporate image Total Points PIA 6 5 5 6 5 5 5 6 43 Air Blue 5 6 6 5 5 5 5 3 40 Shaheen Air 4 4 5 5 5 5 4 4 36

a 3 Star Airline

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PIA Pakistan Int'l Passenger Comments survey based on Passengers of Pk-304, Karachi to Lahore. Pk-778, Glasgow to Lahore. SUMMARY RANKING Combined Quality of Product / Staff service in airport and onboard environments Business Class Premium Economy Class Economy Class Airport Services Check-In service - Business Class Check-In service - Economy Class Transfer Services - Business Class Transfer Services - Economy Class Arrival Services Business Class Lounge - product facilities Business Class Lounge - staff service Onboard Features Inflight entertainment may vary according to aircraft type Cabin Safety Procedures In-flight Entertainment Amenities, Blankets, Pillows, Towels etc Airline Magazine, Newspapers & other mags Cabin Seat Comfort Seat Guide Seating may vary according to aircraft type Business Class - long haul Business Class - short haul Premium Economy Class - long haul Economy Class - long haul Economy Class - short haul Onboard Catering 29 | P a g e

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Business Class - long haul Business Class - short haul Premium Economy Class - long haul Economy Class - long haul Economy Class - short haul Cabin Staff Service Business Class - service efficiency Business Class - staff attitude & friendliness Premium Economy Class - service efficiency Premium Economy Class - staff attitude & friendliness Economy Class - service efficiency Economy Class - staff attitude & friendliness Responding to Passenger requests Cabin presence through flights Assisting Parents with children Staff Language Skills

BIBLOIOGRAPHY
1. www.piac com.Pk

2. http://en.wikipedia.org/wiki/Pakistan_International_Airlines_destinations 3. http://en.wikipedia.org/wiki/Pakistan_International_Airlines 4. Annual report of PIAC 2008. 5. www.google.com 6. PIAC in-flight entertainment magazine.
7. New Frontiers in HRD By Monica Lee, Jim Stewart, Jean Woodall 30 | P a g e

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