Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award


Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

Pakistan International Airlines is a Semi Government organization. Its Headquarter is at Jinnah International Airport Karachi. It operates to 18 national and 28 international destinations in 21 countries cross\Asia over Asia, Europe and North America. Its principle bases are at Karachi, Lahore and lslamabad/Rawalpindi. Other bases incorporate Peshawar, Faisalabad, Quetta, Sialkotand Multan.

PIA has a splendid record of breakthroughs in aviation industry. It is the first Asian Airline to fly a jet airplane. It today stays by a wide margin Pakistan's biggest airline with 25 aircrafts. It has a glorious history of excellence and remained one of the top ten airlines in n the world during 1960’s and 70’s. The phenomenal growth however declined gradually with passage of time, reaching a current level where it is consistently operating in losses during last two decades. International Market Share decreased from 33% in the Year 2012 to 27 % in 2013 while in domestic airline market, PIA shares dropped drastically from 76% in the Year 2012 to 59 % in 2013, which prompted the concerned authorities to contemplate.

The report is to determine the factors which lead this prestigious organization to a dreadful current state and the aspects which are significant for customers and where PIA is lagging on, to choose an Airline for domestic travel in Pakistan. In line with positioning research protocol by Industry Professionals, responses from both, the employees of the organization for the reasons of decline and passengers for relative positioning of Pakistan International Airlines in comparison with other domestic airlines of the country were sought.

Organizational employee’s survey revealed that Political Interference, Overstaffing, Aging fleet. Non availability of Spare Parts, rising fuel prices, debt servicing of loans and non involvement of middle and lower ranks in decision making were the main factors they believed, the contributing features to the present state.

The attributes that are critical to the passengers in choosing the airline for their domestic travel across Pakistan and where PIA is lagging on, were low fare, punctuality, least flight legs and reservation convenience. While positive aspects of PIA were safety, onboard catering, In flight entertainment, reasonable rescheduling/Refunding policy, loyalty programmes and comfortable onboard space and leg rooms.



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