Author

Hashim Khan,

Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

2017

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

Airline Industry has been growing ever since its inception in 1909 by DELAG airline which used the airships manufactured by Zeppelin Corporation, Germany. After a century, our airspace is filled with thousands of aircrafts a day, making it one of the biggest industry and a basic necessity in current era. Airline industry entered in Pakistan since independence through "Orient Airways" after which this industry remained in the hands of government control where Pakistan International Airlines (PIA) continued a monopoly position on domestic routes and major shareholder of international routes until the introduction of private airlines and rapid growth of foreign carriers in Pakistan.

The study on this research reviewed the passenger airline industry in Pakistan through analysis on past performance, extensive literature review, review of regulatory framework and primary research designed to target the air travelers and subject experts of aviation. During this research study, it was identified that airline Pakistan was increasing at a rate of approximately 10% but the growth was mostly taken by foreign airlines while local airlines were losing their market share in international segment. The reason for the downfall was lack of capital investments, non-availability of aircraft capacity, in-efficient operations on available routes and lack of better customer services. Regulatory framework suggested that policies were liberalized in Pakistan’s airline industry but its effect was minimum towards the local airlines and supported the competition among players in business.

This research further determined the factors for selection and perception of passengers through survey with sample size (n=140) predominantly male, working and educated individuals having above average income with one to three times frequency of travel. The prime aspects for airline selection were price, flight schedule, customer services and public image. Hence, the airlines could work on these parameters to improve their overall productivity and performance.

The results of this research would be beneficial for the airlines to develop the strategies to gain the market share, raise the profitability and fulfill the passengers’ requirements.

Pages

75

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