University of Gujrat                            (Hafiz Hayat Campus)   Faculty of Management and Administrative Sciences  ...
Introduction to PIAPakistan International Airlines Corporation, more commonly known as PakistanInternational Airlines or P...
in London, United Kingdom, via Cairo International Airport in Cairo, Egypt and LeonardoDa Vinci International Airport in F...
Pakistan Aviation Industry:Air Transportation is a fast growing industry, highly capital intensive, highly sensitive tobus...
Current Airlines of Pakistan:Pakistan International AirlinesAero AsiaAir BlueShaheen Air InternationalCargo Airlines of Pa...
Problems of this OrganizationPIA is getting losses for many years. No serious effort is done to get out it from losses.Dur...
Over recruitment:Pakistan International Airlines is a large organization with 18,043 employees. Its fleetcomprises of 43 p...
Maintenance problems:Beside having a large number of engineers, there is always been a question mark onPIA’s fleet mainten...
Building brand equity by considering the SIX BUILDING BLOCKS approachBrand Awareness:Creating brand awareness is one of th...
Brand imageBrand image is The impression of a product held by real or potential consumers.PIA paints the brand image of be...
Cargo division must be responsible for supplying both perishable and non-perishablegoods in the global market place.Discip...
Brand Equity:The worth of a brand or A brands power derived from the goodwill and namerecognition that it has earned over ...
Criteria for Choosing Brand ElementsBrand elements are those trademark devices that serve to identify and differentiate th...
Adaptability: Brand elements should be flexible and updatable. PIA has successfullybeen updating some of its elements, for...
Brand Differentiation:The brand differentiation is basically brought by positioning of brands. Positioning is theplace whi...
Positioning by AttributesIn this strategy PIA positions itself in the mind of the consumers as the reliable airtransport s...
Vision Statement of PIAPIA‟ s existing vision:“To be a world class profitable airline, exceeding customer expectations thr...
RECOMMENDATIONS for PIAPIA should upgrade its fleet as it’s causing the airline higher operating cost and PIA isincurring ...
Marketing policy:PIA should adopt good marketing policies so that it will bring higher profit and maximumutilization of it...
References:http://www.piac.com.pk/http://en.wikipedia.org/wiki/Pakistan_International_Airlineshttp://www.answers.com/topic...
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Pia final

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Pia Int'l Airline Re-branding
Presented at UOG to MR.Mirza Ashfaq By Zeeshan Asghar

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  1. 1. University of Gujrat (Hafiz Hayat Campus) Faculty of Management and Administrative Sciences Course Title: Product & Brand Management Course Code: MKT-435 Submitted by Zeeshan Asghar Roll # 08021220-025 Muhammad Usman 10012720-021 Hassan Mushtaq 07010920-125 Fakhar GullName of Program Coordinator: Mirza Ashfaq Ahmed 1
  2. 2. Introduction to PIAPakistan International Airlines Corporation, more commonly known as PakistanInternational Airlines or PIA (Urdu: ), is the flag carrier airlineof Pakistan.Pakistan-based company -------- engaged in the provision of air transport services.Pakistan International Airlines (also referred to as PIA), is the national flag carrier ofPakistan and the national airline operating passenger and cargo services around theworld. Its main hubs are Jinnah International Airport, Karachi, the Allama IqbalInternational Airport, Lahore and the Islamabad International Airport,Islamabad/Rawalpindi.It also serves regional airports, including Peshawar International Airport, Peshawar,Faisalabad International Airport, Faisalabad and Multan International Airport, Multanthat connect to the main hubs and have flights to the Middle East.Pakistan International Airlines is the national flag carrier and was established in 1955. Itnot only provides transportation services, but its operations extend to providing cargoservices and courier services also. Pakistan International Airlines serves two markets –Domestic and International. In the domestic sector, it has out performed itself bystretching its networks to areas where other airlines do not fly.Pakistan International Airlines PIA can trace its beginnings to the days when Pakistanstill was not a nation. In 1946, Muhammed Ali Jinnah, also known as Quaid-e-Azam,realized the need for an airline network for the forming country. He called upon the helpof an experienced industrialist Mirza Ahmad Ispahani. Orient Airways, registered inCalcutta, was formed on October 23 1946, In February 1947, three DC-3 airplanes werebought from a company in Texas, and in May of that year, the airline was granted alicense to fly. Services were started in June from Calcutta to Akyab and Rangoon. Thiswas the first post war airline flight by a South Asian registered airline company.Two months after this service began, Pakistan as a nation was formed. Orient Airwaysbegan relief flights to the new nation, and soon after, it moved operations to Karachi,where it began the important route from Karachi to Dhaka. In addition, their initialdomestic route in Pakistan was established, from Karachi to Lahore to Peshawar, andfrom Karachi to Quetta to Lahore.The government of Pakistan, realizing the operation was failing economically, asked theairline to merge into a new national airline that the government was planning. On March11 of 1955, Orient Airways merged with the Governments proposed airline, becomingPakistan International Airlines Corporation. During the same year the airline opened itsfirst international service, under the PIA name, from Karachi to London Heathrow Airport 2 7
  3. 3. in London, United Kingdom, via Cairo International Airport in Cairo, Egypt and LeonardoDa Vinci International Airport in Fiumicino, Italy using Lockheed Constellations. The DC-3s continued operating the domestic services in Pakistan.The most important element of any airline service is the aircraft itself. Currently PIA has43 aircraft in its fleet. These aircraft are: Types of Aircraft In Service Airbus A310-300 12 Airbus A321-200 - ATR 42-500 7 Boeing 737-300 7 Boeing 747-200 2 Boeing 747-367 6 Boeing 777-240ER 4 Boeing 777-240LR 2 Boeing 777-340ER 3 Total 43In the international market it faces severe competition, especially due to the fact thatthese international organizations are providing fares much lower than PakistanInternational Airlines. Internationally also, Pakistan International Airlines is encounteredwith a severe and strong challenge with many renowned international names. PakistanInternational Airlines faces competition with not only international airlines but also withlocal airlines on the various routes to the Middle East and the Gulf.Due to fierce competition and rising oil prices, international aviation industry regulationsand some internal factors such as human resource issues of over recruitment, de-motivated employees, mismanagement of resources both in case of manpower andother resources, aged fleet, corruption and lack of accountability PIA is facing a deepfinancial crisis. It is losing its market share both in international market and domesticcircuit. 3
  4. 4. Pakistan Aviation Industry:Air Transportation is a fast growing industry, highly capital intensive, highly sensitive tobusiness cycles, facing increasingly deregulated environment and hence highlycompetitive background. The transportation sector holds a very important position in theeconomy of Pakistan. Currently it contributes almost 10% in the GDP.The aviation sector was deregulated just 11 years ago. This encouraged many airlinesthat stopped their operation many years back due to Millions of Civil Aviation Authoritydues. Bhoja, Hajvery and Raji were closed down, but they have been granted licenseagain.Air Blue and Royal airlines have initiated their operations also and they are the secondalready operating in Karachi-Dubai cargo flights.One market which is not served by the Private Airlines includes all flights to thosedomestic which are not profitable. It is required by the government that PIA offers itsservices in not so profitable areas, which is a liability of PIA being a semi privateorganization. PIA calls it “loss making sector”.Private airlines have stunned the aviation industry as they charge below cost fares. Atthe moment when fuel prices are touching all-time high levels in the internationalmarket, cut-throat competition among private airlines has placed a million-dollarquestion about the feasibility of these airlines.PIA operates in two major markets; Domestic and International. PakistanInternational Airlines has the lion’s share in the domestic market. As it is the oldest andthe pioneers it has the better fleet as compared to its competitors who arecomparatively newer in this segment. Besides this, Pakistan International Airlines has ahuge network of flights through out the country. The number of flights remains the sameduring on-season and off-season. Pakistan International Airlines faces competition withnot only international airlines but also with local airlines on the various routes to theMiddle East and the Gulf. 4
  5. 5. Current Airlines of Pakistan:Pakistan International AirlinesAero AsiaAir BlueShaheen Air InternationalCargo Airlines of Pakistan:Pakistan International CargoDHL Cargo PakistanRoyal Air CargoStar AirTCS CouriersMARKET SIZE AND MARKET GROWTH:The total market size for the year 2006-2007 was 14.199 million passengers ascompared to 14.615 million passengers for the year 2005-2006, therefore resulting to anin decrease.PIA BRANDBrand CharacteristicsThe product that PIA offers is the transportation routes (both domestic and international)for passengers (seats) and for cargo (space). PIA is basically an air travel serviceprovider therefore it fulfills the general characteristics of services (intangible,inseparable, variable, perishable and simultaneous) as well as it has some tangibleaspects in terms of newspaper/magazine, meals, in-flight entertainment system. 5
  6. 6. Problems of this OrganizationPIA is getting losses for many years. No serious effort is done to get out it from losses.During the last year Pakistan International Airlines (PIA) has stained a loss of PKR13.4billion ($207.5 million). Operationally, it was also blacklisted by the European Unionduring the year, which hit its bottom line along with its prestige.Losses for the year have widened slightly from a loss of PKR12.76 billion recorded in2006.Pakistan International Airline is currently ranked amongst the top 20 airlines of Asia. Ithas the capacity of becoming on top of the list. But due to certain reasons its marketshare has been decreasing both in the domestic as well as in the international market.Although it is still occupying a strong position in the domestic circuit being the nationalflag carrier but the current position is threatening for the national flag carrier.During the last four years the company has beard the accumulated loss in excess of 30billion rupees, while its total debt is almost reaching 1 billion $. The expenses of thecompany are increasing but the profits are decreasing. All the shareholders’ money isgone and the company is facing the worst financial situation. PIA has lost its marketshare in domestic airline market, which has dropped to 69 % in the FY 2007/08. Thingson international front were also not so different for PIA, as national airline’s marketshare in the international market dropped from 48 to 43 %. Profitability of PIA isdecreasing. The share price of PIA closed at Rs 5.25 on June 14, 2008.The company beard the lost of 13.39 billion Rs. In 2007, about 12 billion Rs. in 2006.Pakistan International Airlines is currently facing a loss of approximately 40 million Rs.per day.Problem Description:According to our research the company is having the problem in the following areas.The problems for Pakistan International Airlines include:Lack of Brand AwarenessLow scale advertisements and awareness:A common Pakistani may even not know about Pakistan International Airlines. Noadvertisements and awareness to the organization’s brands in such a modern era ofmarketing. Cricket stars and sportsmen are hired on heavy salaries but with no profit tothe organization. Pakistan International already being an ethnic airline is just confiningitself to its own country. No such efforts to enhance the brighter and soft image of thenation as well as airline are made. 6
  7. 7. Over recruitment:Pakistan International Airlines is a large organization with 18,043 employees. Its fleetcomprises of 43 planes. It operating planes are just 33. It means round about 525employees per plane. The industry average is being between 150-250 people. Thisdescribes the position of the company clearly. This drives the cost of the companyfurther.De-motivated employees:Pakistan International Airlines is a company which is constantly going in loss. Highernumber of employees and the company already going in loss de-motivates theemployees. The employees do not feel secure themselves in the company and try tomove to other successful organizations. Also certain issues such as centralized decisionmaking and salary issues also de-motivate the employees taking their attention awayfrom their job.Political involvement during recruitment and selection:Pakistan International Airlines being the government organization has the stronginfluence of the politicians and government officials. Reports say that Mr. Tariq Kirmaniwas appointed chairmen PIA due to being a friend of Prime minister. Similarly Mr.Kirmani appointed his own friend Director MIS at a heavy salary. Selection andrecruitment is not done on merit. Current deputy managing director is another exampleof this who was a pilot by profession and now deputy managing director still flies somehours a week to keep his license on.Lapses in the management:The PIA’s management is ineffective to resolve and plan at the right time.Rising fuel prices in the World:There is been consistent rise in fuel prices in the international market. Fuel prices haveimpacted on almost every airline in the world. This has affected Pakistan internationalAirlines more than any other airline due to its aged fleet. New planes are fuel efficient ascompared to old ones. In an airline normally 30-35% of expenses account for fuelexpenses but in Pakistan International Airlines this number goes to 45-50%. Due tothese factors PIA has to charge more fare to customers that’s dissatisfies thecustomers.Global impact of 9/11 on aviation industry:After the 9/11 attacks air traffic has been decreased all over the world. It has affectedPakistan international Airlines also. Passengers are more inclined towards traveling toother countries such as European countries. Air traffic in Asia, especially in south Asiahas decreased. 7
  8. 8. Maintenance problems:Beside having a large number of engineers, there is always been a question mark onPIA’s fleet maintenance. Last year European Union banned 20 out of 42 planes werebanned from operating in Europe. This results a 4 billion Rs. loss to the company justfrom Europe’s segment to the company. This ban was imposed just due to the lack ofproper maintenance.Corruption at its peak:Corruption is a sin that has hollowed Pakistani society bases. Like all other departmentsof our country corruption is at its peak in Pakistan International Airlines. Sale ofRoosevelt hotel in Dubai is a clear example of it. The hotel was valued about 1 billionbut it was sold only in 40 millions. The sale of PIA’s kitchen centre in Karachi is anotherexample of this. There a profit making unit of the company was sold. It was generatinggreat revenues for the company but was sold confidentially.Less technology advanced as compared to its competitors:PIA is competing with the airlines from all over the country especially with the MiddleEast airlines which are coming in with heavy investment. Its competitors such asEmirates and Qatar airways have great capital. Theses Middle East organizations areputting in newer and newer technology and acquiring greater manpower. PIA beingalready in a financial crunch faces a tough task.Poor image:With already going in financial loss, 9/11 impact on the industry and above allincapability of Pakistan International Airlines’ management has badly damaged theimage of the Airline. Due to all such problems the fares of PIA are higher but service isnot up to that class. This also gives a bad image to the passengers.Lack of training facilities:Although PIA is running a training and development department in Karachi but it is insufficient to feed such a big organization with almost 18000 employees. Special skillssuch as engineering, technicians are lacking. If they are there, they are not delivering. 8
  9. 9. Building brand equity by considering the SIX BUILDING BLOCKS approachBrand Awareness:Creating brand awareness is one of the key steps in promoting a product.AdvertisementPIA is advertising its products (destinations) through different mediums. PIA hasadvertised in News papers (DAWN NEWS, THE DAILY NEWS, JUNG and planning forother newspapers also,);. PIA is also advertising through transports (painted corporateimage of PIA on transport sides). The firm is also advertising through press releases, inthe news articles. Public relations are being made by the employees of PIA whichenhances the firm‟ s image. PIA had sponsored in the Cricket events.How more effective awareness can be madePIA should advertise on TV channels like other airlines are advertising. BBC and CNNwould be great for advertising, because most of the people watch these channels in thepresent days. TV ads give competitive advantage to the competitors of PIA.Radio AdsPia need to advertise there new promotion on radio channels for more effectiveawareness about the brandNews Paper adSpecial news paper ads, e.g half paper ads on front page and advertising in SundaySpecial Magzines which most people read.BRAND RECOGNITIONPIA has high brand recall. It is recognized by travelers all over the country. PIA is anational airline, operating passenger and cargo services covering eighty-two domesticand foreign. PIA has earned the Satisfactory ranking in customer satisfaction. Thisstrong market position gives the company a scale advantage and helps it strengthen itsbrand image. 9
  10. 10. Brand imageBrand image is The impression of a product held by real or potential consumers.PIA paints the brand image of being the less price taker and providing high quality to thecustomers as compare to the competitors.PIA positions itself as an ambassador of Pakistan in the world. Pakistani expatriatesresiding outside the country feels proud when they see an airline of their own home-country carrying the national flag. This arises the loyalty factor in the hearts of theexpatriates and they prefer to travel by PIABut today Pia had lose its brand image because of its poor quality services and highprice taker.And With already going in financial loss, 9/11 impact on the industry and above allincapability of Pakistan International Airlines’ management has badly damaged theimage of the Airline. Due to all such problems the fares of PIA are higher but service isnot up to that class. This also gives a bad image to the passengers.Its time for PIA needed to rebuild its image and change the perception of the brand inthe eyes of Pakistani nationals and Pakistanis living overseas, as well as otherinternational passengerHow Pia can make strong Brand image in its Customer mind?By properly marketing itself PIA will present a better image to the world. By clearlydescribing facilities and projecting its image it will help in growing market share.Management should ensure the punctuality of flight, in flights services and theirstandard must be world class. Safety and maintenance issues for the planes must bestrongly checked. Management’s perspective should be to increase the profitability andensure the good image of Pakistan. Security and safety of cargo must be ensured. Itmust be management’s responsibility to ensure services to the passengers both inplane and at airport as well.Effective campaigning of the special interests tourists’ packages for Pakistan toincrease the travel to Pakistan must be done. Soft and brighter image of Pakistan andPIA must be enhanced.Passenger sales must be held responsible to boost sales by introducing different typesof packages. It must also have the responsibility for handling customer queries andcomplaints. 10
  11. 11. Cargo division must be responsible for supplying both perishable and non-perishablegoods in the global market place.Discipline should be the key factor for the organization. Policies must be clearly defined.Goals and objectives should be determined for the organization as a whole andindividually as well. Management must assure that each and every person is committedto his job and the organization is going towards the achievement of its targets.Modernizing the airline’s fleet is badly needed as well proper maintenance of the fleet isrequired.Better and modern functioning of training and development department. Need foraccountability.Brand Knowledge:Brand Knowledge “is a function of awareness, which relates to consumers’ ability torecognize or recall the brand, and image, which consists of consumers’ perceptions andof associations for the brand.”PIA is very easily recognized and recalled because it is named after the country‟ sname, has green logo and a very memorable slogan. This will help to show a high levelofawareness about the brandBrand Elements and DifferentiationName: Pakistan International Airlines (PIA)URL: www.piac.com.pkLogo:Slogan:Great People to Fly WithCome Fly with UsBa-Kamal loog Lajawab ServiceColor: GreenNational Flag on aircraft tail 11
  12. 12. Brand Equity:The worth of a brand or A brands power derived from the goodwill and namerecognition that it has earned over time, which translates into higher sales volume andhigher profit margins against competing brands .What potential challenges exist for brand equity in PIA.i The major challenge for PIA is to improve its quality image. People go for it for thedomestic travel for the reason that it is relatively better and safer than existing airline,any good international airline, if it decides to cater Pakistani customers‟ domesticneeds by entering the market, can seriously hurt PIA.ii. Another challenge is to rigorously train the staff to improve the service perception ofthe customer.Customer Based Brand Equity Model 12
  13. 13. Criteria for Choosing Brand ElementsBrand elements are those trademark devices that serve to identify and differentiate thebrand. The main ones are brand names, URLs, logos, symbols, characters, slogan,jingles, packages and signage.Memorobility: A necessary condition for building brand equity is achieving high level ofbrand awareness. PIA is very easily recognized and recalled because it is named afterthe country‟ s name, has green logo and a very memorable slogan. The researchresults show a high level of brand, slogan, and logo awareness.Meaningfulness: Brand elements can take all kind of meaning, with either descriptiveor persuasive content.A very important criteria is that the brand elements should provide(i) General information about the nature of the product category(ii) Specific information about particular attributes of the product.Pakistan International Airline provides the general information about the productcategory as well as some specific information i.e. country of origin, but it does notprovide information about specific benefit by brand name, slogan or logo.Likability: Criteria for likability is that brand elements should be fun and interesting, richin visual and verbal imagery, and aesthetically pleasing. PIA brand logo has a richvisual imagery that evokes a sense of national connect in the mind of the customer.Also, the brand name style, and logo are aesthetically very pleasing.Transferability: Transferability of brand elements means they should be transferableacross product categories and across geographical boundaries and culture. PIA‟ sname, slogan and logo suggest it is an airline, so transferability across productcategories is limited. Also, as Pakistan is not enjoying a positive image around the worldat the moment, the brand elements transferability across geographical boundaries andcultures is limited. For example, given the fact that American culture presentlydominates the world, American Airlines can successfully operate in most countries if itwishes so. But at the moment Pakistan International Airline cannot leverage the countryname. 13
  14. 14. Adaptability: Brand elements should be flexible and updatable. PIA has successfullybeen updating some of its elements, for example slogan. The brand name and logo isalso easily updatable with a touch of creativity.Protectability: Brand elements must be legally and competitively protectable. Thebrand elements of PIA are protectable both in terms of legal and competitive sense, andare registered. Also, PIA is a national flag carrier which makes its brand elementslegally and competitively protectable. The fact that the brand is named after thecountry‟ s name, it is unlikely that the brand name will be copied internationally. POP’s Schedule Airline and Cargo Facility Domestic and International Flights Economy Class Online Booking/e-Ticketing POD’s National values are strongly associated with PIA Domestic (All Major Cities) Economy Plus/Business Class Holiday Packages Boeing 777-200LRBy making effective promotion of our brand PIA we can attain majority of peopleattention easily by effective communication with our customer by using Mass Media &internet. Positive thing is People are aware of the signs, slogan, symboland URL of PIA are highly memorable, and people are well aware with these.A large majority of the respondents were able to recognize the slogan and logo of PIA,but not associated nowadays air travel with PIA because of less services provided andhigh fare charged . But we can attain majority of people attention easily with effectivecommunication with customer via using Mass Media as few people aware of the onlineservices PIA is providing through its URL, and finds online reservation very convenient.And by offering various packages and discount to our customer. 14
  15. 15. Brand Differentiation:The brand differentiation is basically brought by positioning of brands. Positioning is theplace which the brand makes in the minds of the customers or in market.Competitive Position of PIADifferentiationCompetitive Moves • PIA is having 48.4% market share internationally and 65% domestically, and PIA has the Market Leader Competitive Move in Pakistan. • Competitor Attack Strategy • The attack strategy of PIA against its competitor Air Blue is Flanking Attack Strategy.Positioning of PIAPIA‟ s existing Positioning StrategyCurrently PIA positions itself within the following positioning strategies.1) Positioning by attributes.2) Positioning by price and quality.3) Positioning by product user. 15
  16. 16. Positioning by AttributesIn this strategy PIA positions itself in the mind of the consumers as the reliable airtransport service provider. Because from all the airline companies of the world PIA hasthe least crash rate. By positioning the reliability attribute of the airline in the minds ofthe consumers, people prefer to travel from PIA. Because of the safety attached withthe PIA. Attribute of speed is also attached with this positioning strategy of PIA. Nomatter the flight takes-off half hour late but it will reach to the destination on the exacttime i.e. will not be late. characteristic of safety is also associated with the airline as PIAhas the following certifications.-European Aviation Safety Agency (EASA)-IATA Operational Safety Audit (IOSA)-Civil Aviation Authority of Pakistan ( in accordance with the International Civil AviationOrganizations Standards)Positioning by Price and QualityIn this positioning strategy, PIA can paints the image of being the less price taker byproviding high quality to the customers as compare to the competitors. Examples isgiven belowIntroduction of New Additional Low Cost Flights Packages“PIA express” PIA introduced additional low cost flights. PIA express at 20% less fare.1)This facility is available in Business Plus, Economy Plus & Economy C lass.2) No meals.3) Stand by fares applicable.Positioning by Product User.PIA positions itself as an ambassador of Pakistan in the world. Pakistani expatriatesresiding outside the country feels proud when they see an airline of their own home-country carrying the national flag. This arises the loyalty factor in the hearts of theexpatriates and they prefer to travel by PIA. 16
  17. 17. Vision Statement of PIAPIA‟ s existing vision:“To be a world class profitable airline, exceeding customer expectations throughdedicated employees, committed to excellence.Faults : Vision Statement of a company is usually about the goal, that they want to achieve inthe near future. PIA‟ s visions statement is presentably mixed up the mission statementbecause it’s stated in the vision statement of PIA that they want to become the worldclass airline exceeding customer expectations through dedicated employees committedto excellence. Many years back PIA was the world class airline but due to financial crisis and someother issues related to the management, PIA failed to achieve the goal of remaining theworld class airline. So it is very clear that Pakistan International Airline does not fulfillthe vision in its core sense.So it needs a revised vision statementRevised Vision Statement of PIA:“Company vision is to Cover more locations, domestically and Internationally by beingthe World best and most profitable airline company. Also to be an airline carrier thathas the most dynamic workforce to guarantee the best flight possible for everypassenger.”The Revised Vision Statement is company oriented. The Revised Vision Statement includes all the necessary features that should be therefor a comprehensive vision statement for PIA. 17
  18. 18. RECOMMENDATIONS for PIAPIA should upgrade its fleet as it’s causing the airline higher operating cost and PIA isincurring loss .PIA should purchase new Airplane with twin engines these will reducethe operating cost of PIA Airline should focus on the customer’s satisfaction, refundprocess should be quick so that customer remains loyal to brand.(i) There should be clear and even distribution of work and only qualified person should beappointed on jobs.(ii) There should be improved service standards and that should focus on quality. PIAshould offer its services of reservation and seat confirmation with by SMS and flightconfirmation message should also be sent via SMS to the passenger.(iii) PIA should give more incentives to its frequent flyer as it will generate more brandloyalty by giving better incentives to the customers(iv) Marketing department must deliver in order to create a strong figure for theorganization. It must be responsible for creating more sales and getting more marketshare. Providing awareness about the good characteristics of the organization. Gettinginformation on related field and report to the top officials.Decentralization:PIA should decentralize its structure that would lead to the easy management andincreased motivation.Transparent policy adoption:PIA should adopt transparent policy that employees should be promoted on meritbasis. And Chairman of PIA should be appointed from with in the organization. Unionshould support it, it will motivate the employees and PIA will grow in profit.(i) By purchasing new fleets the repairing cost decreases and attracts the customersthat cause to decrease the cost and increase the revenue of PIA. Fleet modernizationwill bring more security, safety, less maintenance expenses and will project a brighterimage of the airline.(ii) Training and development of employees will prepare the employees for current tasksand for future challenges. 18
  19. 19. Marketing policy:PIA should adopt good marketing policies so that it will bring higher profit and maximumutilization of its available resources, Business sector should be attracted to operate atfull potential. i. Modernizing the airline’s fleet is badly needed as well proper maintenance of the fleet is required. ii. Must take advantage of the increment in the air transportation especially towards Middle East countries and India. iii. Better and modern functioning of training and development department iv. Need for accountability.Things to attract passengers from a passengers point of view* On time flights* Newer aircraft e.g. Boeing 737 are ok or B777.* Extra services on board like amenity kits in Economy too!* A variety of newspapers and magazines* More services at the airport* Lower prices!!* Quicker, transit to next flight. For example I would take a cheaper flight if theconnection time was less and cheap. 19
  20. 20. References:http://www.piac.com.pk/http://en.wikipedia.org/wiki/Pakistan_International_Airlineshttp://www.answers.com/topic/pakistan-international-airlines?cat=biz-finhttp://news.bbc.co.uk/1/hi/business/1561315.stmhttp://www.airlinequality.com/Forum/pia.htmwww.pakistaniaviation.com/PIA ANNUAL REPORTS(2006,2007,2010) Journals, Reports, Magazines, 20

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