problems of PIA and solution + strategies

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TOTAL QUALITY

MANAGEMENT



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Total Quality

Management

October 1

2013MAHA JAMAL

SAIRA IQBAL

AFSHEEN KHAN

AREEBA IMTIAZ

MEHWISH ALMAS

SUBMITTED BY:

SUBMITTED TO: MISS UZMA

CLASS & SEC: BBA II- B

SUBMITTED DATE 1st

OCT, 2013



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Article No: 1

Thursday, 22 Mar 2012 9:35 pm

NIMRAH AMJAD

Karachi.

PIA is facing serious problems nowadays. Flight delays and cancellations have become the norm

rather than the exception. The Pakistan International Airlines is also suffering from severe

financial crisis.

It is, in fact, passing through a critical phase because of poor management, lack of maintenance,

corruption and financial issues. There are complaints of terrible service, long delayed flights,

emergency crash landings, cancellation of flights, and shortage of planes. These issues create

frustration among the passengers. They feel fear and life risk while travelling through PIA.

PIA has, in all, 39 aircrafts in its fleet. A number of aircrafts have been grounded due to

shortage of spare parts or overhauling. Latest news report claimed that PIA had grounded 18

planes. A recent PIA flight PK 303, from Lahore to Karachi, was 6 hours delayed on 15 March,

2012. The bad governance, poor performance and corruption are the major causes of its failure.

Unfortunately, PIA is functioning with costs higher than returns. The airline charges are

enormously high for both domestic and international flights. PIA claims that increase in oil

prices and devaluation of Pakistani currency are the major reasons behind its deficit.

PIA in the past was known all over the world for its excellent performance and superior quality.

That was the golden period for PIA. Now PIA is going in loss. A couple of months ago, rumours

circulated that the increased frequency of emergency landings by PIA were being orchestrated

to tarnish its image and reputation. Investigation should be carried out to find out the truth.

PIA should give primary importance to the safety of the passengers and make efforts to avoid

any untoward situation. Several untoward incidents have occurred in the last decade. It is

necessary to tackle such incidents seriously to minimize the losses.



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Article No: 2

PIA CRISIS: Monday, 13th January 2013 11:35 pm

M u h a m m a d D a h e e m

Karachi.

Saturday, December 03, 2011 - The Pakistan International Airlines is suffering from severe

financial crisis. It is, in fact, passing through a critical phase because of poor management, lack

of maintenance, nepotism, corruption and financial issues. There are complaints of terrible

service, long delayed flights, emergency crash landings, cancellation of flights, shortage of

planes, unclean toilets that smell from a distance and non-serious attitude of the

administration. These issues create frustration among the passengers. They feel fear and life

risk while travelling through PIA. The Airlines is at the brink of disaster. It needs exemplary

leadership, qualified and merit based staff and technically strong administration to improve its

performance and save it from the clutches of the wolves.

PIA has, in all, 39 aircrafts in its fleet comprising of 4 Boeing 777-200 ER, 3 Boeing 777-300 ER, 2

Boeing 777-200 LR, 6 Boeing 737-300, 5 Boeing 747-300, 12 Airbus A310-300 and 7 ATR 42-500.

A number of aircrafts have been grounded due to shortage of spare parts or overhauling. These

include Boeing 747s, Boisiseing 737s and Airbus A 310. It is generally believed that PIA high-ups

are responsible for the inconvenience of the passengers. The whole system needs overhauling.

PIA is facing serious problems. The major problems faced by PIA are increase in oil prices,

overstaffing, devaluation of local currency, political interference and its weak financial position

since the last decade. PIA has suffered huge loss of more than 64 billion rupees from 2005 to

2008. It has also suffered huge losses in 2009 and 2010 particularly due to increase in the price

of the fuel and devaluation of Pakistani rupee. It is, now, just like a white elephant. The bad

governance, poor performance and corruption are the major causes of its failure. The Pakistan

International is a big organization with more than 18000 employees. PIA was known all over the

world for its excellent performance and superior quality. That was the golden period for PIA.

But now it has lost his luster.

Flight delays and cancellations have become the norm rather than the exception. Naturally this

situation cannot be tolerated for unlimited period. PIA will have to overpower its weaknesses. It

has failed to resolve issues of its organization. The average ratio of staff should not exceed 100

per aircraft while PIA enjoys more than 400 employees per aircraft. It is overpopulated and

needs to cut its coat according to its cloth. It needs some hard decisions by the administration

to run the system smoothly. Pakistan International Airlines should give primary importance to

the safety of the passengers and make efforts to avoid any untoward situation. Several



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untoward incidents occurred in PIA in the last decade. It is necessary to tackle with such

incidents seriously to minimize the losses. The passengers should not suffer in its custody.

PIA has problem of maintenance and repairs. It is stated that tender for the maintenance of the

aircrafts has been given to a company that does not have international reputation. It is further

stated that PIA tends to sublet dubious and substandard companies with no internationalcredibility and little experience for maintaining its fleet. Saleem Irshad, retired engineer, claims

that high-ups of PIA have financial stake in these small and substandard companies. The

obscure vendors, hired by PIA, are one of the major problems. They are just like risky shots in

cricket. The airline that once assisted other airlines is now losing its control over itself. It’s high

time the government restructured PIA. It should discard its old and obsolete fleet of aircrafts

and have new one to improve its overall performance.

Sagging seats and soggy seat covers, messy floor carpets, dirty and gritty outlook,

malfunctioning toilet doors, rattling planes and failing equipment need refurbishment, better

maintenance and planning. It is necessary for PIA administration to put on considerable effort

to avoid anxiety of the travelers. It is pertinent to mention that one of PIA aircrafts was

inspected at Paris Airport by the inspectors of Safety Assessment of Foreign Aircraft (SAFA)

while en route from Paris to Lahore. They detected several snags in the aircraft. The

organization warned PIA to overpower the shortcomings or face the consequences. The team

detected fuel leakage from one of the engines of Airbus A-310. In consequence passengers

were evacuated in emergency.

Another aircraft of PIA had been detained at a French airport owing to safety reasons. The

plane was returning home from Milan via Paris. The European aviation inspectors checked it at

Charles de Gualle Airport, directed the crew to off-load the passengers and then detained the

aircraft. The team pinpointed 39 snags including fuel leakage from Airbus A-310. The followingfaults were found by the inspecting team: “one panel right of NLG door bent; right f airing (inlet)

cracked and bent; one latch on each engine closed by lock wire; fuel leakage on the Engine 2

pylon at the end of refueling; hydraulic leak from steering actuator; fuel leakage from

the Engine 1 pylon, both wing root and horizontal stabilizer; on right wing root external one

thermal protector tightened up with locking wire; engine No 2 inboard fire seal damaged;

temporary repair performed on engine No 1 fire seal outboard; hydraulic seepage on wheel No

1 brake assembly” etc. It is a long list of snags showing the “real efficiency” of the PIA

administration. It is stated that crew failed “to manage a quick and correct emergency

evacuation” of the aircraft. PIA should assure full implementation of safety standards in light of

inspection report by SAFA inspectors.

Unfortunately PIA is functioning with costs higher than returns. PIA claims that increase in oil

prices and devaluation of Pakistani currency are the major reasons behind its deficit. It needs

remarkable effort and money to improve its ranking in the world airlines.

A four-day strike by Pakistan International Airlines employees caused huge financial loss.



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Article No: 3

PIA Needs Attention

Saturday, 18th

June, 2012

Bismah Anzar,

Karachi

There was a time when PIA indeed was an airline that people could look forward to as a good

alternative to the high prices of private airlines. But like almost everything of our country’s

glorious possessions this airline could not be an exception due our corrupt former rulers. It is

said that high fuel prices were also responsible for the decline and near bankruptcy but this is a

small factor to be blamed for such a large issue.

Though it is acceptable that it has recently faced global economic recession but the realproblem is with the people running or rather ruining it. Every airline of the world has set some

standards as to which air craft’s will stay in their fleet and which need to be grounded. Here the

case is different, the officials of PIA totally neglect the vital area of maintenance of crafts as air

craft’s are the source that will generate them money, but they totally ignored their condition

and now the situation is that one after the other their air crafts are becoming useless thus

disturbing , delaying and canceling flights that is not only irritating and reducing the customers

but also causing serious blows to the existence of the airline itself. Even after being imposed

bans by foreign countries the PIA administration could not open eyes and give attention to it. It

is also feared that a plan has been chalked out to replace this airline with a new one but even if

this is not true, the truth is that PIA indeed needs attention. If we will not care about ourcountry’s pride no one is going help out in future then.



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Acknowledgment

We wish to express our sincere appreciation to those people who have

contributed either directly or indirectly to this report. We wish to thank

to my teacher MISS UZMA gratefully for her invaluable guidance in

making this report we also gratefully acknowledge my all group

members who work on the value of being organize and corporate a lot

on every step of making this report possible.



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Table of Contents:

Executive summary……………………………………………………………………………………………………….……..4

Introduction…………………………………………………………………………………………………………………………..5

History………………………………………………………………………………………………………………………………..…5-6

Organizational chart……………………………………………………………………………………………………………...7

Major problems of PIA: …………………………………………………………………………………………………………8-19

Financial crises…………………………………………………………………………………………………………9-10

Flight delays……………………………………………………………………………………………………………..10-11

Poor customer service………………………………………………….………………………………………….11-12

High ticket Prices………………………………………………………………………………………………………12-13

Mishaps…………………………………………………………………………………………………………………….13-14

Corruption…………………………………………………………………………………………………………………14-15

Over recruitment………………………………………………………………………………………………………15

Outdated technology…………………………………………………………………………………………………16

Maintenance problem……………………………………………………………………………………………….17-18

Poor management…………………………………………………………………………………………………….18-19Conclusion……………………………………………………………………………………….………………………..20

Recommendation ……………………………………………………………………………………………….....21

Reference………………………………………………………………………………………………………………..22



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Executive Summary

The importance of airline has been increased because of globalization where interaction of one

country with other accomplished through airline. We have an honor to work for our project

work about Airline. This report includes the information about Pakistan International Airline,

the introduction of the PIA and the problems which are being faced by national flag carrier. The

purpose of selecting this topic is to know the reasons that why PIA an airline which was one of

the best airline of the world and the strong pillar of Pakistan’s economy, why it is facing loss

from many years? The passengers are continuously switching to the other airlines and PIA is

consistently going down, what is the reason behind this. In this report we developed some

strategies to overcome the problems that PIA facing that help PIA in recapturing the lost

passengers.



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Pakistan International Airline

Introduction:Air transport is given a lot of importance in the world. In Pakistan too, it has its importance. It is

essential to have air communication for maintaining and improving relations with other

countries.

Pakistan International Airlines Cooperation, commonly known as PIA is the flag carrier airline of

Pakistan. The airline which its head office on the grounds of Jinnah International Airport in

Karachi, is one of the largest airline in Asia, operating scheduled services to 24 domestic

destinations and 39 International destinations in 25 countries across Asia, Europe and North

America . Its main bases are Karachi, Lahore and Islamabad/ Rawalpindi.

The airline secondary bases include Peshawar, Faisalabad, Quetta, Sialkot and Multan, from

which it connects the metropolitan’s 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%).

History:

BACKGROUND

When Pakistan was founded in 1947 it comprised two territories on either side of the expanse

of India. It was in this unusual circumstance that Pakistan International was formed. Despite

wars and economic trouble, the carrier survived to grow and prosper. Today it maintains a

sizeable international route network, in addition to its services closer to home; with a modern

and expanding flee.

PIA ESTABLISHED IN 1951

After the independence of the Pakistan 1947, Pakistan decided in 1951 that it needed a

national flag carrier airline; the government of the country accordingly established Pakistan

International Airlines (PIA), in this role, and on 25 May ordered three examples of the Lockheed

L-1049C Super Constellation four-engine airliner as the new operator's initial equipment. PIA



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flew its first service with the Super Constellation on 07 June 1954 on the route linking Karachi

and Dacca (now Dhaka), which were the main cities of the country's western and eastern

halves, of which the latter is now Bangladesh.

On 1 February 1955 the airline flew its first international service, between Karachi and London

via Cairo

HISTORY OF PIA THAT INTRODUCED THE THING FIRST TIME IN

ASAIN COUNTRYIES:

PIA was the first airline from an Asian land country and the first airline from a Muslim country

to fly the Super Constellation. The first Asian airline to operate a jet aircraft PIA set up

Pakistan's first planetarium at Karachi. The first airline in South Asia to introduce auto-ticketing

facility. The first airline to introduce a second route to People's Republic of China over the

mighty Karakoram Mountains. First airline in South Asia to offer the facility of seat reservation

through mobile phone.



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Organizational Chart of PIA:

SP assistant to

chairman

Chairman

(PIA)

Secretary

(PIA)

Director

precision

engineering

Managerdirector

Director

coordination

to MD

SVP engg,

SVP flightoperations

SVP flight

safety

Deputy

managing

director

SVPFinance

Director

finance

SVP monitoring&

appraisals

SVP information

technology

SVP sales

SVP human

resource &

administration

SVP

procurement

logistics

SVP quality

assurance



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Major Problems of PIA



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Major Problems Which Are Being

Faced By PIA:

PIA is getting losses for many years. No serious efforts done to get out it from losses. During the

last year Pakistan International Airline (PIA) has stained a loss of PKR 13.4 billion ($207.5

million). Operationally it was also blacklisted by European Union during the year which hit the

bottom line along with its passengers:

Some of the major problems are following:

1. Financial Crises:

Problem:

Pakistan International Airlines, the national flag carrier, is suffering from an accumulated loss of

Rs169.921 billion from 2013 June 30.PIA facing Rs 100m loss daily. PIA is facing huge financial

loss like bankruptcy due to mismanagement, conflict of interest, massive financial

&administrative discipline and lack of lack honest & professional board of directors in the past 5

years. PIA faced loss of 38 billion in 2008. Financial condition of PIA is so worst that it has not

enough money to purchase fuel as the cost of fuel is 54% of the cost of PIA. The report of2008

said cheques issued to employees’ account have been bounced due to non-availability of cash.

Although PIA doesn’t have money to pay salaries to its employees but it has given vehicles of billion rupees to its officers but not have not enough money to make full payment for such

luxuries.

Solution:

First review its management problems and try to solve them.

Honest employee and professional.

Enough funds.

Strategies:

The PIA must have its strong infrastructure that made the TQM more effective if infrastructure

is well developed after implementing of TQM is bound to give revolutionary growth as well as

performance. The “total organizational” involvement will help the PIA to overcome their

financial lose, by total involvement t of employee and top manger that build trust and

confidence and united force to achieve organizational goal. Empowering employee give



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continuous improvement, TQI increase competitive advantage and reduction in wastage and

save the man power and fuel etc. and apart from it employee and customer get satisfied, in

Result Company will get remarkable profit.

For making profit PIA should reduce their expenses like facilities such as air tickets allowed to

the employees including Chairman/MD and their families should be stopped for five years. Only

official visits are allowed that too in economy class. To make the company profitable the

government should sell oil to aviation companies without charging sales tax and other taxes on

the fuel, which will immediately reduce the amount of money being spent on oil. For a limited

time period. Once the airlines show a positive cash flow, then the government can start

collecting taxes again.

2. Flight Delays:

Problem:

Flight delays and cancellations have become the norm rather than the exception. Naturally this

situation cannot be tolerated for unlimited period.

Mismanagement of staff is a big issue of flight delay. Many times staff is unaware or do not

provide required information to travelers due to which travelers have to wait for hours.

The major reason of flight delay is carelessness of engineers due to which aircraft often get

technical faults. Infect there is no proper information given by management about whether for

caste which is also the reason of flight delay.

Solution:

Management should be proper.

Give proper information to them.

Good technologies must be there to handle the entire technical fault.

Make your customer satisfied.



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Strategies:

The PIA want to solve that problem with the help of “TQM” must have to need to build the

foundation; to build good management the every employee from top to bottom work together

and that focused on customer satisfaction, used information system or internet to interlink with

customer and all sub departments that tell about the flight delays and other problems,.

Maintain of machines of right quality, right quantity, right time and right place and must have

effective cost so they technical faults not arises ,continuous improvement process needed, and

advance technology must be there.

3. Poor Customer Services:

Problem:

The main purpose of business is to satisfy customer who are the backbone and key of success of

any organization. PIA customers are not satisfied with their services as the reasons are as

follow:

Due to lack of good facilities: food, individual TV sets, limited seats.

delay in the time schedule

ticket issues and expensive ticket price for the customers who missed the flight, no any

discount on this

no customer interaction

old machinery ,which caused delays in the schedule of flight time, need automated

machinery

Limited number of plans in respect to demand.



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Solution:

Provide customer good facilities.

Provide discount benefit to loyal customer.

Advanced machinery should be used.

Increase the number of plan.

Strategies:

The “TQM” focused on the customer satisfaction, understand the customer needs

(implied and stated need) by value added you can make your customer satisfied the

process must be efficient and as well effective, do it right first time. And quality

improvement must be there, and train the employee to talk with the customer in a

polite way.

4. High Ticket Prices:

Problem:

There is been consistent rise in fuel prices in the international market. Fuel prices have

impacted on almost every airline in the world. This has affected Pakistan international Airlines

more than any other airline due to its aged fleet. New planes are fuel efficient as compared to

old ones. In an airline normally 30-35% of expenses account for fuel expenses but in Pakistan

International Airlines this number goes to 45-50%. Due to these factors PIA has to charge more

fare to customers that’s dissatisfies the customers.

Solution:

Make new and effective plans and control the quality and make the customer satisfied.



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Strategy:

The “kaizen GEMBA” help PIA to control the quality by elimination of wastage leading that

reduced the expense of the fuel, and focused on the continuous improvement that (reduced

the high ticket price) that help the PIA to achieved the highest profit and customer satisfaction.

5. Mishaps:

Problem:

Occurring every day in PIA is just because of carelessness of management and engineers

printing a bad image of PIA . 97 % of all air accidents occur due to human error. During the last

twenty years or so , induction in PIA was not purely on merit which resulted in the decline of

the airline as a whole. Moreover , emergence of new airlines in this region offering handsome

salaries to its employees as compared to PIA resulted in the trained manpower leaving the

airline, which has created a huge vacuum of expert staff for the airline, especially in the

technical departments i.e. engineers and pilots. All these things are the root of this problem.

There have been many mishaps some are discuss below:

A loading truck collided with Pakistan International Airlines (PIA) aircraft at Kuwait airport on

Saturday causing severe damage to its engine, (Express News reported).

The runway at Muscat International Airport was closed for four hours after Pakistan

International Airlines aircraft with malfunctioning landing gear blocked the runway after

touching down.

Solution: Today’s sophisticated aircraft is not meant to crash due to mechanical problems but also the

human error also. It only requires good maintenance and handling by trained pilots & engineer

and you also need good governance to over look these things.

Strategies:

There should be a top to bottom perfection to solve this huge problem:

Detecting the faults occurring in the aircrafts through TQM.

They should follow Japanese style of management.



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Training should be given to make employees motivated and productive..

Hire the qualified, experienced and technical pilots.

Set proper airway routes and directions

6. Corruption

Problem:

The corrupted governance, poor performance and corruption are the major causes of its failure.

It is observe that friends of our former president are the major shareholder in PIA which results

in PIA bankruptcy.

Without the fall of PIA, Air Indus an airline like PIA cannot operate as it is pinning its hope on

PIA’s large fleet of aircraft to be bought by this company.

PIA is a fine example of failed policies, and a case of current government’s evil inten tions to

make PIA a thing of past.

PIA has recently faced global economic recession but the real problem is that its people are not

running it infect they are ruining it.

Solution:

Proper management and controlling plans should be made to improve the overall

performances of PIA. It should create Goodwill among its customers.

Strategies:

Internal politics should be omitted.

Total quality recruitment.

No favoritism among employees.

Fire those who are not fruitful for the organization.

Value added services should be given to attract or retain customers.



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Communication channels or networking should be strong to neglect propagandas

that are being played for this organization

7. Over Recruitment:

Problem:

Naturally this situation cannot be tolerated for unlimited period. PIA will have to overpower its

weaknesses. It has failed to resolve issues of its organization. The average ratio of staff should

not exceed 100 per aircraft while PIA enjoys more than 400 employees per aircraft. It is

overpopulated and needs to cut its coat according to its cloth. It needs some hard decisions by

the administration to run the system smoothly. Past three years over recruitment of peoplewhich had suffered losses worth Rs100 billion in the same time period?

Solution: Pakistan international airline need rightsizing. PIA should recruit that people who are

productive and focused on the organizational goal.

Strategies:

Implementation of TQM various practices successfully are positively related to HR function.

Rightsizing” of current employee should be based on “total quality recruitment” that has a zero

defect recruitment and “right first time selection”, and the employee not able to fulfill the

criteria downsizes that employees. The standard performance should totally base on the

“customer care indicator”. The PIA should downsize those employees who are appointed as

political ground because most of them are more like a burden on P.I.A expenditures as they are

getting salaries for nothing. They are not providing any kind of benefit to the organization.



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8. Outdated Technology:

Problem:

PIA is competing with the airlines from all over the country especially with the Middle East

airlines which are coming in with heavy investment. Its competitors such as Emirates and Qatar

airways have great capital. Theses Middle East organizations are putting in newer and newer

technology and acquiring greater manpower. PIA being already in a financial crunch faces a

tough task.

Solution

Heavy investment

Great capital.

Advancement in technology

Greater manpower.

Strategies:

There should be quality control of thing and quality improvement must be there to have great

capital, the employee should drive out of the fear and consider work standard carefully and the

employee must have the skill that are required, the technological advancement come from if

the company focused on the targeted goal and reduced expenses.



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9. Maintenance problem:

Problem:Sagging seats and soggy seat covers, messy floor carpets, dirty and gritty outlook, malfunctioning

toilet doors, rattling planes and failing equipment need refurbishment, better maintenance and

planning.

PIA has problem of maintenance and repairs that it is not up to the mark. It is stated that

tender for the maintenance of the aircrafts has been given to a company that does not have

international reputation. It is necessary for PIA administration to put on considerable effort to

avoid anxiety of the travelers. It is pertinent to mention that one of PIA aircrafts was inspected

at Paris Airport by the inspectors of Safety Assessment of Foreign Aircraft (SAFA) while en route

from Paris to Lahore. They detected several snags in the aircraft. The organization warned PIA

to overpower the shortcomings or face the consequences. The team detected fuel leakage from

one of the engines of Airbus A-310. European Union in and out of the region due to lack of

safety regulations and maintenance. However, the ban was a temporary one and it was duly

over turned, but that wasn’t the end of issues for PIA.

PIA was, only a few years back, also not allowed to fly to some European destinations. The lack

of proper maintenance was reported as the main reason for the restriction.

The airline that once assisted other airlines is now losing its control over itself. It’s high time the

government restructured PIA. It should discard its old and obsolete fleet of aircrafts and have

new one to improve its overall performance.

Like any public corporation PIA also suffer colossal losses on account of pilferage especially in

purchases, stores and kitchen etc. Effective deterrence is required to check the leakage. Those

found involved should be dealt with severely. On this score alone organization can save huge

amount of expenditure.



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Solution:

It should discard its old and obsolete fleet of aircrafts and have new one to improve its overall

performance. • It needs proper concentration for maintenance and health concern to meet

international standards.

Strategies:

The strategy that follows over here is “5’s housekeeping”

1.

cleanliness for floor carpet, seat cover, dirty and gritty outlook malfunctioning toilet itcreate good working environment and elimination of accident, and decent appearance

of the organization before the guest and visitors come.

2. Orderliness: proper arrangement of equipment’s to make the work fast without wasting

the effort time and material.

3. Clarity the definite clarity about plane working or not and knows about everything and

should be clearly define.

4. Tidiness avoid the mixing of the product it will save your time and reduced the re work.5. Discipline must be there in every organization to work effectively.

10. Poor Management :

Problem:

Poor management is also important cause for the existing situation of the organization.

Employees are not in control of management so employees do what they want and so do

managers. Some policies from management is also costing the organization, for instance,

Emirates Airline use only two employees per plane whereas in PIA. There are five Employees

per plane that means PIA is overcrowded which is definitely unnecessary, and by paying these



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additional employees it is costing a lot to the PIA. The other reason is misuse of funds; most of

the funds were used for lavishness by managements instead of using- it on the fleet to make it

considerable for the international standards.

Solution:

Proper management must be there. The management should plan to deal with this issue. The

management should redesign their business process. Implementation should be there for plans.

Proper controlling should be on regular bases.

Strategy:

For Long term achievement manager’s vision should be SMART (Specific, Measurable,

Attainable, Realistic and Time bound). Technical knowledge must be improved about the

product, process and its usages to: increase product quality Better applicability longer life of a

product Enhance customer Satisfaction Bring down cost of production to better utilization of

men, machines and material. Management should also consider 3 M’s of TQM “MURI MURA

AND MUDHA” To avoid wastage both material and time. To reduce over burdening from

people, equipment and resources. To avoid lack of standardization or uneven Should

implement Eliyahu M.Goldratt’s of MURA theory that focus on the weakness point of the

organization and then keep on strengthen on weakness to make the organization management

more powerful and effective in offering a complete solution to organizational problem. All

problems. Management should also consider Two-Way Communication so; employees can

prove to be very effective in improving the operations as they are the ones who manage them.

Therefore, a top-down 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.



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Conclusion:

The final conclusion of this report is that No doubt PIA is still a strong brand name in Pakistan.

The people of Pakistan want to travel through PIA. But they say that they are compelled to

travel through other airlines because of above reasons. So it’s the time when the management

and government of Pakistan need to take some serious steps to uplifting of PIA because

Pakistan is now facing economical and inflation crises so if PIA can dependent than the day is

not far when it will start contributing in the country’s economy by adding its revenue in it. We

all hope that in the next few years



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Recommendations:

• Needed better functioning of human resource and administration department

• Management is needed to perform it responsibility professionally. Reducing costs and trying

to achieve more market share by combining the organization.

• Marketing department must deliver in order to create a strong figure for the organization. It

must be responsible for creating more sales and getting more market share. Providing

awareness about the good characteristics of the organization. Getting information on related

field and report to the top officials.

• Coping with fuel rising prices in a way as most successful airlines are doing

• Modernizing the airline’s fleet is badly needed as well proper maintenance of the fleet is

required.

• Must take advantage of the increment in the air transportation especially towards Middle

East countries and India.

• Better and modern functioning of training and development department

• Need for accountability.



Reference:

http://pakobserver.net/detailnews.asp?id=128193

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/national/31-Jul-2013/mega-

crisis-hits-pakistan-international-airlines

https://www.google.com.pk/?gws_rd=cr&ei=xIJKUteBCs7n4QT2qYGwCw

http://x.dawn.com/tag/pia-crisis/

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/11-Sep-2013/pia-

can-fly-out-of-crisis-ahsan

http://dawn.com/news/1024882/chitral-people-seek-rebate-in-pia-fares

problems of PIA and solution + strategies

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