This document provides an analysis of PIA and reasons for its poor performance. It begins with an introduction to the global airline industry and background on PIA. The research design section outlines the objectives, sources of data, and instruments used. A literature review covers the US, Indian, and Pakistani airline industries. Data analysis compares PIA's financial position and strategic development to Lufthansa. The document finds issues like overstaffing, aging fleet, corruption, and lack of accountability have led to PIA's deep financial crisis and declining market share. Recommendations are made to improve PIA's performance.
International Business and Country Analysis: FinlandHassaan Elahi
This report is based on analyzing the international business opportunities in Finland for Pakistan and have also given in-depth country analysis of Finland based on current trends and most recent data related to different aspects of the country. In this report, objective of choosing Finland and its importance for Pakistan in trade relations has been given. Moreover, brief description and the evolution of the country have also been mentioned. The report has also given a detailed analysis of the country’s current political, socioeconomic and cultural scenarios and have also mentioned the risks associated with conducting and operating businesses in Finland for foreigners. Furthermore, the report has also analyzed the current economic trends of Finland by highlighting its key performance indicators that are used by the country, assessing its current trade performance, balance of payment and exchange rate situation both in the past and future, mode of trade used by the country, investment opportunities and trends, and key trading partners of the country with their share. The report has also analyzed the current industry situation of Finland by highlighting and assessing its key performing sectors, export and import oriented industries, export and import partners, as well as its current export and import market share. Moreover, Finland’s competitive advantage, its major resources and companies have also been mentioned. Lastly, the report has also given forecast of the next five years based on the analyzed data and have also suggested some solutions for the country to improve its major weaknesses. In addition, the report has also highlighted the ways in which Pakistan can reap benefit from Finland, how Pakistan can collaborate with this country and what exporters and government of Pakistan can do to maintain a long term robust trade relationship with Finland by providing mutual benefit to both the countries.
This study provides an analysis of the costs and benefits of emigration for Georgia, with an emphasis on emigration to the EU. In the concluding section we dwell on the consequences of a possible liberalization of EU migration policies with regard to Eastern Partnership (EaP) countries, and how such a policy change would affect the flow and composition of migration from Georgia to the EU. The study estimates the costs and benefits of migration through the prism of recent economics developments in Georgia and in particular the sweeping liberalization reforms of recent years. While Georgia remains a poor country, its geopolitical position as a Western outpost in the Caucasus and Central Asian region, its role as a key trade and transportation hub, the superior quality of its bureaucracy, lack of corruption, etc., provide a very different context for migration processes, turning migration into a circular phenomenon, a major factor in modernizing the Georgian economy, society, and politics. The EU should give due consideration to this phenomenon as it (re)considers its policy on migration with regard to Georgia and, potentially, other EaP countries.
Authored by: Lasha Labadze and Mirian Tukhashvili
E-commerce Challenges in Western Balkans (AL, BH, KS)Armin Konjalic
This document represents a summary of the findings of the analysis of challenges from the private sector
with regards to e-commerce in Bosnia and Herzegovina, Kosovo, and Albania.
For this study, more than 40 e-commerce companies from Albania, Bosnia and Herzegovina and Kosovo were interviewed about online communication, cross-border sales, payments, logistics, customs, taxes, consumer rights, intellectual property and data protection. The study covered online retailers, service
providers, fashion designers and craft accessories producers, industry associations, payment providers, couriers, online marketplaces (B2C, B2B, C2C) for physical goods and digital services.
How policy-makers can support the startup ecosystem in Western BalkansArmin Konjalic
This document represents a collaborative effort of practitioners of the startup
ecosystem in economies of Western Balkans (W6) in Albania, Bosnia and Herzegovina,
Kosovo, Montenegro, North Macedonia, and Serbia. The aim of the document is to
summarize the most urgent needs for action to policy-makers in the region.
The resulting policy recommendations are based on the aggregation of inputs and
comments from more than 20 interviews with regional startup founders at different
stages of development, local and international investors with strong knowledge of the
region’s specifics, managers of local innovation and technology hubs, representatives of
incubators, accelerators, lawyers, and accountants specialized in work with startups,
innovation and intellectual property.
These policy recommendations were elaborated in a panel discussion at Western
Balkans Digital Summit Belgrade in April 2019. Representatives of Digital Initiative
Serbia, Innovation Center Kosovo, South Central Ventures, Spark Mostar, and Startup
Europe exchanged thoughts and ideas about the most important action points for
enhancing startup entrepreneurship in the region.
This document follows the structure of the six interconnected and interdependent
pillars of startup ecosystems: policy, finance, market, business support, human capital,
and culture. The focus of the document is on policy as the fundamental pillar, and its
interaction and influence on other elements of the ecosystem.
International Business and Country Analysis: FinlandHassaan Elahi
This report is based on analyzing the international business opportunities in Finland for Pakistan and have also given in-depth country analysis of Finland based on current trends and most recent data related to different aspects of the country. In this report, objective of choosing Finland and its importance for Pakistan in trade relations has been given. Moreover, brief description and the evolution of the country have also been mentioned. The report has also given a detailed analysis of the country’s current political, socioeconomic and cultural scenarios and have also mentioned the risks associated with conducting and operating businesses in Finland for foreigners. Furthermore, the report has also analyzed the current economic trends of Finland by highlighting its key performance indicators that are used by the country, assessing its current trade performance, balance of payment and exchange rate situation both in the past and future, mode of trade used by the country, investment opportunities and trends, and key trading partners of the country with their share. The report has also analyzed the current industry situation of Finland by highlighting and assessing its key performing sectors, export and import oriented industries, export and import partners, as well as its current export and import market share. Moreover, Finland’s competitive advantage, its major resources and companies have also been mentioned. Lastly, the report has also given forecast of the next five years based on the analyzed data and have also suggested some solutions for the country to improve its major weaknesses. In addition, the report has also highlighted the ways in which Pakistan can reap benefit from Finland, how Pakistan can collaborate with this country and what exporters and government of Pakistan can do to maintain a long term robust trade relationship with Finland by providing mutual benefit to both the countries.
This study provides an analysis of the costs and benefits of emigration for Georgia, with an emphasis on emigration to the EU. In the concluding section we dwell on the consequences of a possible liberalization of EU migration policies with regard to Eastern Partnership (EaP) countries, and how such a policy change would affect the flow and composition of migration from Georgia to the EU. The study estimates the costs and benefits of migration through the prism of recent economics developments in Georgia and in particular the sweeping liberalization reforms of recent years. While Georgia remains a poor country, its geopolitical position as a Western outpost in the Caucasus and Central Asian region, its role as a key trade and transportation hub, the superior quality of its bureaucracy, lack of corruption, etc., provide a very different context for migration processes, turning migration into a circular phenomenon, a major factor in modernizing the Georgian economy, society, and politics. The EU should give due consideration to this phenomenon as it (re)considers its policy on migration with regard to Georgia and, potentially, other EaP countries.
Authored by: Lasha Labadze and Mirian Tukhashvili
E-commerce Challenges in Western Balkans (AL, BH, KS)Armin Konjalic
This document represents a summary of the findings of the analysis of challenges from the private sector
with regards to e-commerce in Bosnia and Herzegovina, Kosovo, and Albania.
For this study, more than 40 e-commerce companies from Albania, Bosnia and Herzegovina and Kosovo were interviewed about online communication, cross-border sales, payments, logistics, customs, taxes, consumer rights, intellectual property and data protection. The study covered online retailers, service
providers, fashion designers and craft accessories producers, industry associations, payment providers, couriers, online marketplaces (B2C, B2B, C2C) for physical goods and digital services.
How policy-makers can support the startup ecosystem in Western BalkansArmin Konjalic
This document represents a collaborative effort of practitioners of the startup
ecosystem in economies of Western Balkans (W6) in Albania, Bosnia and Herzegovina,
Kosovo, Montenegro, North Macedonia, and Serbia. The aim of the document is to
summarize the most urgent needs for action to policy-makers in the region.
The resulting policy recommendations are based on the aggregation of inputs and
comments from more than 20 interviews with regional startup founders at different
stages of development, local and international investors with strong knowledge of the
region’s specifics, managers of local innovation and technology hubs, representatives of
incubators, accelerators, lawyers, and accountants specialized in work with startups,
innovation and intellectual property.
These policy recommendations were elaborated in a panel discussion at Western
Balkans Digital Summit Belgrade in April 2019. Representatives of Digital Initiative
Serbia, Innovation Center Kosovo, South Central Ventures, Spark Mostar, and Startup
Europe exchanged thoughts and ideas about the most important action points for
enhancing startup entrepreneurship in the region.
This document follows the structure of the six interconnected and interdependent
pillars of startup ecosystems: policy, finance, market, business support, human capital,
and culture. The focus of the document is on policy as the fundamental pillar, and its
interaction and influence on other elements of the ecosystem.
Definition of investment strategy for sustainable development of regional eco...SubmissionResearchpa
This article is discussed that the theoretical foundations of determining the investment strategy for sustainable development of the region’s economy, as well as the current situation, analysis and future plans. by Rakhimberdiev Oybek Alisher ugli 2020. Definition of investment strategy for sustainable development of regional economies. International Journal on Integrated Education. 2, 4 (Mar. 2020), 108-115. DOI:https://doi.org/10.31149/ijie.v2i4.241. https://journals.researchparks.org/index.php/IJIE/article/view/241/234 https://journals.researchparks.org/index.php/IJIE/article/view/241
This file summarizes Doing Business 2016 data for Kazakhstan. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.
2012 Jordan ICT & ITES Industry Statistics Yearbook
Jordan’s ICT and IT Enabled Services (ITES) sector has come a long way in the past years and has achieved a great deal of accomplishments in which we can all take great pride. ICT and ITES are listed amongst the government’s highest priorities, and are expected to continue to contribute to the Jordanian economy.
To demonstrate the sector’s growth in terms of numbers and to determine the growth in market size, exports, investments, and employment, the Information Technology Association of Jordan (int@j) and the Ministry of Information and Communications Technology (MoICT) have completed the ICT and ITES Sector Classification and Statistics for 2012 aiming to provide clear and accurate references on Jordan's ICT and ITES sector size and magnitude.
Despite its many advantages, the Eastern and Southern Mediterranean region remains relatively backward in economic and social terms and is rightly considered a potential source of social and political instability. Its average GDP per capita lags behind the global average and is increasing slowly due to weak economic policies, poor governance and rapid population growth. The region suffers from high unemployment (especially among women and youth), poor education, high levels of income inequality, gender discrimination, underdeveloped infrastructure, continuous trade protectionism, and a poor business climate. To overcome these development obstacles, MED countries should conduct comprehensive reforms of their economic, social and political systems with the aim of ensuring macroeconomic stability, increasing trade and investment openness, improving the business climate and governance system, and upgrading infrastructure and human capital.
The main economic and political partners of the MED countries, especially the EU, can actively support this modernization agenda through liberalizing trade in some sensitive sectors (like agriculture and services), adopting a more flexible approach to MED labor migration, and cooperating in mitigating climate changes, improving educational outcomes, and promoting science and culture. This will require renewed initiatives with dedicated technical assistance and continued and enhanced financial assistance, particularly to improve infrastructure. There is also a lot of room for improvement in intra-MED cooperation but this requires resolving the protracted political conflicts in the region and taking bolder steps to remove trade and investment barriers.
Written by Marek Dąbrowski and Luc De Wulf. Published in January 2013.
PDF available on our website: http://www.case-research.eu/en/node/57925
The purpose of this study is to explore and assess the costs and benefits of labour migration in Armenia and the potential of migration for contributing to the country’s development. We also examine how policy can be effectively formulated and implemented so that Armenia can get the most out of its migration experience. Lastly, we analyse how a phenomenon that emerged because of limited opportunities for employment – migration – evolved into a strategy towards development and prosperity.
Based on this analysis, this paper makes a strong argument in favour of implementing programs in Armenia that involve the active collaboration of government institutions and the Armenian Diaspora, duly considering the unusual influence the latter has on Armenia’s economic and human development.
Authored by: Gagik Makaryan and Mihran Galstyan
Published in 2013
Labour migration does not appear to have the same magnitude and socio-economic importance in Belarus as in other EaP countries. It is one of the few post-socialist economies that have preserved the dominance of the state sector and built complicated systems of subsidisation and economic support for the population designed to manage the political-business cycle (see Chubrik, Shymanovich, Zaretsky (2012)). This model has allowed the economy to grow quite steadily until recently. However, the distorted system of incentives that was created for enterprises and households has resulted in the need for a “correction”, which happened in the form of a balance of payments crisis in 2011. The impact of this factor on migration has not been fully visible yet. At the same time the relatively long period of stability and gradual, but steady, increase in welfare payments has played a role as a migration-restraining factor. In order to estimate cost and benefits of labour migration between EU and Belarus, this study utilises publically available literature as background and relies where possible on micro-data: Census-2009, Household Budget Survey (HBS), as well as relevant official data and data from polls related to the topic. Additionally, some sections of this report rely on information collected in the course of a focus group meeting with labour migrants and a series of in-depth interviews with officials from state, international, and non-governmental agencies dealing with migration. Lastly, in some cases anecdotal evidence was collected to support some of the new trends that have not yet been recorded in the statistics.
Authored by: Alexander Chubrik and Alaksei Kazlou
The aim of this paper is to provide a framework for the analysis of implications of various trade policy options for Albania. We study the impact of implementation of the Stablization and Association Agreement, free trade agreements with South-East European neighbors and reduction of the MFN tariffs. We employ a computable general equilibrium (CGE) model, which allows for evaluation of the likely impact of trade agreements on trade, output, factor rewards, tariff revenue and welfare. Our simulations indicate that Albania has a lot to gain from further integration with its neighbors and the EU. However, the benefits from regional integration can only be realized as long as Albania gains better access for its exports on regional markets. Liberalization of trade with all trading partners allows for a permanent increase of Albanian GDP by 1% on a recurring annual basis and an increase of wages by 3.4% relative to their 2000 level.
Authored by: Anna Kolesnichenko, Maryla Maliszewska
Published in 2004
Definition of investment strategy for sustainable development of regional eco...SubmissionResearchpa
This article is discussed that the theoretical foundations of determining the investment strategy for sustainable development of the region’s economy, as well as the current situation, analysis and future plans. by Rakhimberdiev Oybek Alisher ugli 2020. Definition of investment strategy for sustainable development of regional economies. International Journal on Integrated Education. 2, 4 (Mar. 2020), 108-115. DOI:https://doi.org/10.31149/ijie.v2i4.241. https://journals.researchparks.org/index.php/IJIE/article/view/241/234 https://journals.researchparks.org/index.php/IJIE/article/view/241
This file summarizes Doing Business 2016 data for Kazakhstan. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.
2012 Jordan ICT & ITES Industry Statistics Yearbook
Jordan’s ICT and IT Enabled Services (ITES) sector has come a long way in the past years and has achieved a great deal of accomplishments in which we can all take great pride. ICT and ITES are listed amongst the government’s highest priorities, and are expected to continue to contribute to the Jordanian economy.
To demonstrate the sector’s growth in terms of numbers and to determine the growth in market size, exports, investments, and employment, the Information Technology Association of Jordan (int@j) and the Ministry of Information and Communications Technology (MoICT) have completed the ICT and ITES Sector Classification and Statistics for 2012 aiming to provide clear and accurate references on Jordan's ICT and ITES sector size and magnitude.
Despite its many advantages, the Eastern and Southern Mediterranean region remains relatively backward in economic and social terms and is rightly considered a potential source of social and political instability. Its average GDP per capita lags behind the global average and is increasing slowly due to weak economic policies, poor governance and rapid population growth. The region suffers from high unemployment (especially among women and youth), poor education, high levels of income inequality, gender discrimination, underdeveloped infrastructure, continuous trade protectionism, and a poor business climate. To overcome these development obstacles, MED countries should conduct comprehensive reforms of their economic, social and political systems with the aim of ensuring macroeconomic stability, increasing trade and investment openness, improving the business climate and governance system, and upgrading infrastructure and human capital.
The main economic and political partners of the MED countries, especially the EU, can actively support this modernization agenda through liberalizing trade in some sensitive sectors (like agriculture and services), adopting a more flexible approach to MED labor migration, and cooperating in mitigating climate changes, improving educational outcomes, and promoting science and culture. This will require renewed initiatives with dedicated technical assistance and continued and enhanced financial assistance, particularly to improve infrastructure. There is also a lot of room for improvement in intra-MED cooperation but this requires resolving the protracted political conflicts in the region and taking bolder steps to remove trade and investment barriers.
Written by Marek Dąbrowski and Luc De Wulf. Published in January 2013.
PDF available on our website: http://www.case-research.eu/en/node/57925
The purpose of this study is to explore and assess the costs and benefits of labour migration in Armenia and the potential of migration for contributing to the country’s development. We also examine how policy can be effectively formulated and implemented so that Armenia can get the most out of its migration experience. Lastly, we analyse how a phenomenon that emerged because of limited opportunities for employment – migration – evolved into a strategy towards development and prosperity.
Based on this analysis, this paper makes a strong argument in favour of implementing programs in Armenia that involve the active collaboration of government institutions and the Armenian Diaspora, duly considering the unusual influence the latter has on Armenia’s economic and human development.
Authored by: Gagik Makaryan and Mihran Galstyan
Published in 2013
Labour migration does not appear to have the same magnitude and socio-economic importance in Belarus as in other EaP countries. It is one of the few post-socialist economies that have preserved the dominance of the state sector and built complicated systems of subsidisation and economic support for the population designed to manage the political-business cycle (see Chubrik, Shymanovich, Zaretsky (2012)). This model has allowed the economy to grow quite steadily until recently. However, the distorted system of incentives that was created for enterprises and households has resulted in the need for a “correction”, which happened in the form of a balance of payments crisis in 2011. The impact of this factor on migration has not been fully visible yet. At the same time the relatively long period of stability and gradual, but steady, increase in welfare payments has played a role as a migration-restraining factor. In order to estimate cost and benefits of labour migration between EU and Belarus, this study utilises publically available literature as background and relies where possible on micro-data: Census-2009, Household Budget Survey (HBS), as well as relevant official data and data from polls related to the topic. Additionally, some sections of this report rely on information collected in the course of a focus group meeting with labour migrants and a series of in-depth interviews with officials from state, international, and non-governmental agencies dealing with migration. Lastly, in some cases anecdotal evidence was collected to support some of the new trends that have not yet been recorded in the statistics.
Authored by: Alexander Chubrik and Alaksei Kazlou
The aim of this paper is to provide a framework for the analysis of implications of various trade policy options for Albania. We study the impact of implementation of the Stablization and Association Agreement, free trade agreements with South-East European neighbors and reduction of the MFN tariffs. We employ a computable general equilibrium (CGE) model, which allows for evaluation of the likely impact of trade agreements on trade, output, factor rewards, tariff revenue and welfare. Our simulations indicate that Albania has a lot to gain from further integration with its neighbors and the EU. However, the benefits from regional integration can only be realized as long as Albania gains better access for its exports on regional markets. Liberalization of trade with all trading partners allows for a permanent increase of Albanian GDP by 1% on a recurring annual basis and an increase of wages by 3.4% relative to their 2000 level.
Authored by: Anna Kolesnichenko, Maryla Maliszewska
Published in 2004
Colliers International Vietnam
Quarterly Knowledge Report for an economic overview and analysis on the Residence, Serviced Apartment, Office, Retail, Condominium, Villa/Townhouse and Industry Real Estate market in Vietnam.
Colliers International Vietnam
Quarterly Knowledge Report for an economic overview and analysis on the Residence, Serviced Apartment, Office, Retail, Condominium, Villa/Townhouse and Industry Real Estate market in Vietnam.
Sample Bridging Local IT Consulting Market ReportBridging Local
The IT staffing market is expected to register a CAGR of 3.66% during the forecast period. The market's growth can be attributed to the increasing outsourcing of HR activities and the emergence of advanced technologies such as AI and IoT, which are expected to create robust demand for IT professionals across multiple end-user segments.
The recent outbreak of COVID-19 has a mix of implications for the IT staffing market, which has created a trend of permanent remote workers, which has caused a shift in the demand for various skill sets and has put multiple changes in the economy. Further, the growth in IT staffing can be attributed to the major role played by the IT services sector globally in helping various end-user industries and businesses across the country in their digital transformation and implementation of new and emerging technologies such as cloud, IoT, blockchain, and AI, post-pandemic.
The overall demand for tech talent remains strong — during the first quarter, U.S. employers posted 1.1 million tech jobs, an increase of 43% from previous year. The tech skills shortage is not new, but as an increasing number of non-tech companies continue to develop a technology infrastructure, demand for tech skills will continue to surge. Given the industry’s exponential advances, it is sparking growth in career and economic opportunities. As an aspiring tech professional, it pays to have knowledge on such areas as development tools, operating systems and programming languages. In US there are currently 5.2 million people employed in Tech sector and is projected to grow to 6 million by 2030.
Who we are?
Bridging Local is a market research and consulting firm helping startups and small business owners with key strategic insights into their target market. Team members of Bridging Local are seasoned consultants with 10+ years of research industry experience.
Our Industry reports are referred by investors, consultants, CEOs and other management professionals from various industries. Hundreds of start-ups have successfully established themselves using our guidance and industry insights. We conduct bespoke research for each client and our reports are tailored to the customer's needs covering a comprehensive review of the market.
Bridging Local`s team of consultant produce one of the most comprehensive market reports in the industry. Email us at contact@bridginglocal.com to arrange a zoom call with one of our consultants to discuss your project requirements.
Selon l’indice mondial 2018 de l’innovation (GII), publié le 10 Juillet 2018, la Tunisie a progressé de 8 places par rapport à 2017 et occupe désormais la 66ème place sur la liste des 126 économies évaluées avec un score de 32.86. La première place est toujours occupée par la Suisse avec un score de 68.40. Elle est dépassée en Afrique par l’Afrique du Sud (58ème) et dans le monde arabe par la plupart des pays arabes du Golfe (EAU, Koweït, Arabie Saoudite et Qatar).
LA TUNISIE CLASSÉE À LA 66ÈME PLACE SELON L’INDICE MONDIAL DE L'INNOVATIONMohamed Larbi BEN YOUNES
Selon l’indice mondial 2018 de l’innovation (GII), publié le 10 Juillet 2018, la Tunisie a progressé de 8 places par rapport à 2017 et occupe la 66ème place sur la liste des 126 économies évaluées avec un score de 32.86. La première place est toujours occupée par la suisse avec un score de 68.40.
Internationalization of Services (KIBS)Mikko Rindell
Internationalization of services.
Appropriate non-equity modes of internationalization for small KIBS firms.
Bachelor's thesis at Turku School of Economics.
Challenges Of Indian Information Technology Outsourcing And Offshoring Servic...Uday Shankar AB
It is astounding to see the growth of the Indian outsourcing sector in spite of the many challenges it faces. In this paper an attempt has been made to identify these challenges along with very brief recommendations.
Assembly Line of Broken Fingers:A Roadmap to Combating Occupational Health an...SLDIndia
Assembly Line of Broken Fingers:A Roadmap to Combating Occupational Health and Safety Hazards in the Manesar Auto Industrial Belt
In April of 2013, a factory building in Bangladesh collapsed and killed at least 1,100 workers. In the wake of this catastrophe, the United Nations set up a committee to ensure families of the dead or injured workers were compensated. The committee estimated that the cost of doing so would be $40 million.
As of last year, however, it had raised only $15 million, indicating the shameful reluctance of factory owners and foreign retailers to help those devastated by their greed. Unfortunately, this was not an isolated instance. It is axiomatic that every year tens of thousands of lives are shattered throughout the world due to preventable occupational hazards.
A prime example of this unfortunate truth is the Manesar Auto Industrial Belt near New Delhi, India. Between the years of 2000 and 2004 alone, the Indian auto component industry grew from USD 3.9 Billion to USD 6.7 Billion. There was also estimated to be approximately 160 global auto giants with international purchasing offices in India by the year 2010
March 2015
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
Airlineres
1. Analysis of PIA & Reasons of Poor Performance
MBA Page 1
Contents
INTRODUCTION......................................................................................................................................3
INTRODUCTION.............................................................................................................................................4
BACKGROUND...............................................................................................................................................7
PROBLEM STATEMENT..................................................................................................................................7
SIGNIFICANCE OF THE STUDY .......................................................................................................................8
SCOPE OF THE STUDY....................................................................................................................................8
RESEARCH DESIGN...............................................................................................................................9
Research Design & Methodology .............................................................................................................10
RESEARCH DESIGN ...................................................................................................................................10
RESEARCH OBJECTIVES ...........................................................................................................................10
SOURCES OF DATA....................................................................................................................................10
A. Primary Source....................................................................................................................................10
B. Secondary Source................................................................................................................................10
SECONDARY SOURCES.............................................................................................................................11
RESEARCH INSTRUMENTS.......................................................................................................................11
I. Questionnaire Analysis .......................................................................................................................11
II. Discussion analysis.............................................................................................................................11
QUALITATIVE QUANTITATIVE RESEARCH ............................................................................................11
UNIT OF ANALYSIS....................................................................................................................................11
LITERATURE REVIEW.......................................................................................................................12
REVIEW OF THE RELATED LITERATURE.......................................................................................................13
US Airline Industry ..................................................................................................................................13
Indian Airline Industry.............................................................................................................................14
Pakistan Airline Industry.........................................................................................................................15
Background of PIA Airline ...........................................................................................................................16
Labor Unions Strike.............................................................................................................................18
Banned For Safety Issues ....................................................................................................................18
During recruitment: ............................................................................................................................20
Employee Motivation Level: ...............................................................................................................20
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Nepotism and political involvement in the recruitment and selection:.............................................20
The lack of experience when it comes to the aerospace industry and top management: ................21
Lack of Planning: .................................................................................................................................21
DATA ANALYSIS ..................................................................................................................................22
Data analysis ...............................................................................................................................................23
Financial Standing of PIA.............................................................................................................................24
Share price during last 5 years....................................................................................................................25
Industry Overview.......................................................................................................................................26
Differences between Lufthansa and PIA airline for the investors..............................................................27
COMPARISON OF PIA WITH LUFTHANSA....................................................................................................28
Lufthansa Financial Position ...................................................................................................................28
PIA Financial Position..............................................................................................................................28
Strategic Development at LUFTHANSA...................................................................................................29
Strategic Development at PIA.................................................................................................................30
Human Capital Management at Lufthansa.............................................................................................30
Human Capital Management at Lufthansa.............................................................................................30
Image of Lufthansa .................................................................................................................................31
Image of PIA............................................................................................................................................32
Financial Performance ............................................................................................................................32
Financial Highlights .....................................................................................................................................33
Conclusion...................................................................................................................................................34
CLOSING UP...........................................................................................................................................36
FINDINGS FROM THE RESEARCH.................................................................................................................37
CONCLUSION...............................................................................................................................................38
RECOMMENDATIONS .................................................................................................................................39
References ..................................................................................................................................................40
Appendix .....................................................................................................................................................41
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INTRODUCTION
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INTRODUCTION
In the 21st
century, globalization, population, and technological advances in various
sectors have assisted to establish tourism into one of the world’s biggest industries. According to
a study, the receipts of tourism have reached more than £1100 billion by the end of 2006. In
addition to that, this sector has generated more than 350 jobs. Since, the sector has the ability of
generating income, taxes, currency and jobs, the industry of tourism needs to develop more to
make a significant contribution to the country’s economy across the globe (Bornhorst et al. 2010:
576).
Tourism industry is one of the largest worldwide, generates nearly 212 million jobs and
represents an important contribution to gross domestic product of many countries. In an industry
of this size, the information and communication technology (ICT) has played a key role as a
means to improve the efficiency of the organization as well as the delivery of services (Bornhorst
et al. 2010: 577).
Airline industry is described as a strongly competitive market. The air travel has always
been a large and growing industry. It facilitates international investments, tourism, world trade
and economic growth. It is, therefore, centre to the globalization that is taking place in numerous
other countries. In previous years, there has been a shakedown throughout the industry, having
wider effects on the trends of international and domestic services expansion. Initially, the
industry was partially or completely owned by the Government. Afterwards keeping the potential
in view, Private businesses also start their own Airliners and starts attracting money. Before 2011
incident the Airline industry is regarded as one of the biggest and fastest growing industry.
If we analyze the market of Pakistani Airliners they have some good number in their
financial statements other than the Government Airliner (PIA). But it was the time when these
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Local Airlines are rated as top of the world, (PIA) is considered as one of the top most airlines of
the world and its Pilots are considered as highly trained and able to handle any of the problems in
air. According to an IATA survey, (PIA) was ranked as top 10 airlines of the world.
Pakistan International Airlines is the national flag carrier and was established in 1955. It
not only provides transportation services, but its operations extend to providing cargo services
and courier services also. Pakistan International Airlines serves two markets – Domestic and
International. In the domestic sector, it has outperformed itself by stretching its networks to areas
where other airlines do not fly to. In the international market it faces severe competition,
especially due to the fact that these international organizations are providing fares much lower
than Pakistan International Airlines. Internationally also, Pakistan International Airlines is
encountered with a severe and strong challenge with many renowned international names.
Pakistan International Airlines faces competition with not only international airlines but also
with local airlines on the various routes to the Middle East and the Gulf.
Due to fierce competition and rising oil prices, international aviation industry regulations
and some internal factors such as human resource issues of over recruitment, de-motivated
employees, mismanagement of resources both in case of manpower and other resources, aged
fleet, corruption and lack of accountability PIA is facing a deep financial crisis. It is losing its
market share both in international market and domestic circuit. The present report is written
about the current situation of PIA and future plan of action for PIA.
Although the Airline industry is no longer experiencing the rapid growth it exhibited
before 1990; commercial air travel in the U.S. remains the preferred method of transportation for
a majority of Americans due to cost-effectiveness and timesaving characteristics. From 1980 to
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1990 the number of passengers traveling by air increased by approximately 72%, in contrast, in
the 1990-1998 period, the airline industry only experienced 36% growth.
On the other hand, if we analyze the Indian airline industry we would find out the fact
that they are operating the local (Government Owned) as well as, local airlines with full zeal and
zest. This means that they are increasing the profit figures and on the same way enhancing the
market share internationally.
One of the main characteristics of the international aviation market, its high concentration
in large aircraft, has remained over the past years. This product category accounted for 55% of
industry sales in 2007(Graph 1). The midsize aircraft represented approximately 10% of trade
International small and less than 1%. The helicopter industry worldwide sold $ 6.4 billion or
approximately 4% of the total aeronautical sector. On its Instead, suppliers of parts, components
and systems continued presenting high participation in international trade, accounting in 2007 for
about ⅓ of Sales of the aviation industry. It is worth mentioning that this last segment includes
both components and systems used in the production process as the spare parts of Aircraft in use.
The involvement of Government in these state owned institutions will results in either
increase in their performance or on the other hand they would change the whole picture and
diminishes the overall growth. PIA was once renowned for its stunning service and better
compliance and flight safety. People feel proud while traveling from the flag bearing airline. But
things have changed suddenly the Growth pattern and sales graph of PIA has gone down so
much so that, its losing its valued customers. Government has announced a bailout package and
emergency Aid for the Public institution in order to buy new planes and to meet up the daily
requirements. On the other hand, one more reason is to fetch the daily losses.
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From 1992 to 2004, PIA has given tough time to other leading international Airlines
BACKGROUND
Company Pakistan International Airlines, for which this year could be the fourth
unprofitable year in a row, plans to bail out of 30 billion rupees ($ 379 million), putting their
hotels. For her, it is perhaps the only opportunity to raise funds in the credit crisis. "We are an
organization in which no one wants to invest" - complained the managing director of the
corporation Aydzhar Mohammad Haroon. New York's Roosevelt Hotel Scribe in Paris and will
be part of the new business, which will be open to investment by state-owned companies.
Pakistan's largest airline also plans to reduce its staff by 5,000, or 28% of the total, going to
outsource. This is a necessary measure, due to the inability to obtain government assistance.
Among other things, Pakistan International Airlines, 88% owned by the state, has to cope with
the effects of rising fuel prices and reduced demand for tourist services caused by the downturn
in the world economy. For the first nine months of the year PIA suffered a loss of 38.4 billion
rupees, while last year their amount of 10.9 billion, according to "Bloomberg". According to
Harun, next week, the airline hopes to get government approval for the operation with hotels.
Investors will be provided with a guaranteed rate of return on hotels worth more than 60 billion
rupees. After about five years of PIA expects to buy them back.
PROBLEM STATEMENT
ANALYSIS OF THE PERFORMACE OF PIA AND THE REASONS OF HUGE LOSSES
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SIGNIFICANCE OF THE STUDY
The study is significant in such a manner that it indicates the causes of loos and
Uncertainty to the flag bearing airline. As discussed above that PIA is world’s renowned airline
and is competing in the market with full zeal and zest. Then what are the reasons when other
Airliners are back to the track of economic progression, what is the reason why PIA is turning to
huge losses. Despite of a number of competitive advantages which the Airline enjoys, it is facing
huge losses. For example: Hajj flights are only allowed for PIA and thousands of passengers
every year travel from PIA. On the other hand, PIA enjoys Enormous Subsidies in Taxes from
the Government of Pakistan.
SCOPE OF THE STUDY
The Scope of the study is unique in the sense that it is useful for the employees as well as,
for the stakeholders who wants to know some strategic and factual reasons behind its downturn.
If we analyze the current Airline Market in Pakistan, One could find out the fact that, New
Airlines are Incorporating their business operations in Pakistan with a heavy investment For
Example: Recently introduced: Indus Air. Than why not PIA which is pioneer in the market and
has a flying reputation.
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RESEARCH DESIGN
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Research Design & Methodology
RESEARCH DESIGN
The analysis of research highlights the research design as ‘Descriptive’. This kind of
research design provides a complete description of regarding the problem statement and the
concepts discussed in it. As in this thesis Analysis of PIA and reasons of losses are discussed in a
descriptive manner.
RESEARCH OBJECTIVES
The main objective of the research study is as follows:
a) Aviation industry of Pakistan and Analysis of PIA?
b) What are the major reasons why the flag bearing Airline his facing Economic and
financial Downturn?
c) SWOT analysis describing the strengths and Weaknesses of PIA?
SOURCES OF DATA
A. Primary Source
B. Secondary Source
Primary data is gathered from Interviews from the people at PIA whereas on the other
hand, Secondary data is collected from a complete analysis of the international literature and
examples. Discussion with the employees of PIA is the major source of collecting information at
PIA.
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SECONDARY SOURCES
Secondary sources for the data extraction are collected from International Research
papers and from IATA Association. On the other hand, Articles and performance of other
airlines which are in competition with PIA.
RESEARCH INSTRUMENTS
I. Questionnaire Analysis
II. Discussion analysis.
QUALITATIVE QUANTITATIVE RESEARCH
It is majorly a qualitative research in which clear description of the analysis of Pakistani
Aviation Market along with the performance of PIA is discussed. The research study is more of
qualitative nature rather than quantitative.
UNIT OF ANALYSIS
a) PIA Airline
b) Economic and financial factors
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LITERATURE REVIEW
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REVIEW OF THE RELATED LITERATURE
US Airline Industry
Air traffic is an engine of global growth and it seems that it will remain, despite the crisis.
To date, the number of passengers grew by an average 5% per year worldwide. Airbus, as well as
U.S. rival Boeing, predicts a growing demand for new aircraft over the next 20 years. The
manufacturers are benefiting mainly two scenarios. Firstly, more and more people in emerging
countries can afford air travel. Furthermore, older aircraft require replacement in developed
countries. After the financial recovery of US the Airliners are also increasing in their demands
and passengers. Ryan Air which is regarded as one of the most competitive airline strikes high in
the recent years.
The economic problems facing the Euro zone have impacted the operations of the airline
industry and forced airlines to implement new strategies in light of declining million passengers
specifically in that region, which stopped flying this year. The issue has had an adverse effect on
the demand for air travel and has affected all airlines serving Europe, we are one of the most
important across the Atlantic, in fact the most passengers are transported to Europe and itself has
affected us, we responded with a reduction in capacity as demand requires and reactivate as
demand recovers, "said Jeff Smisek, president and CEO of United Airlines. Under the
International Press Day to mark the second anniversary of the United-Continental merger was
attended by 75 journalists from all continents and most countries to which the airline flies,
Smisek acknowledged that integration was a very difficult, with many changes.
"It really is a slow process, the main problem occurred with the process of changing
technologies, setting up facilities, internet sites, etc. are many changes and some people are
resistant to change, that's been the hardest part of the merger, "the official said, during a tour of
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the United Operations Center, Willis Tower in this city. Julian Pachon, executive director of
Planning Operations Center, said the company invested about $ 50 million just for the
construction and adaptation of the new Operations Center which occupies only one of the 102-
story tower, but the company actually pay rent for another 19 levels of offices.
Indian Airline Industry
In the recent years the Indian economy has grown with many folds and the economic
growth rate of India touches to 11.22% last year. Having a huge market the Indian business
environment enjoys full liberty of reaping profits. The Flag bearing airline is working under
public private partnership and it is doing better. The financial analysis of the Indian airline
highlights the growth at 3.5% last year. Internationally the Indian market has been the focus of
attention for the foreign investors. On the other hand they have the world largest IT setup which
helps in standing the growth pillars of the country. Last year 5,600 international delegations and
other investors move from different parts of the world and landed in India for the purpose of
investment and doing business in the world’s second largest market.
According to Dev Mukherji, Indian airlines are struggling towards expanding its routes.
The financial position is quite better and we have also witnessed increased air traffic from the
last three years. After saturation of US markets Indian market seems to be a good option for
international investors and therefore, Indian is witnessing larger number of tourists as well as
investors to come in.
Most of the US and UK firms have outsourced their operations to the Indian
manufacturers and in that case the transfer of employees and workers have become a common
practice. India being an international market for the investors is reaping the benefits.
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Pakistan Airline Industry
The flag bearing airline was once the proud of Pakistani nation. According to Naseem
Khanji, the Director Commercial Operations Emirates Airlines is of the view that Pakistan
International Airline the potential to knock out each and every player from the domestic market.
But irony of the fate that, the Airline is doing the same as it has to do.
Pakistan International Airline (PIA) is one of the most progressive airlines before 2006;
the Airliner has the top ranking and efficient pilots. Despite of the old Radar and guidance
system the Airliner didn’t give a chance to any other airline. This becomes crystal clear, when
PIA won the award of being the best airlines having efficient pilots in the whole world.
The financial records of the flag bearing airline show stunning results before 2005, the
EPS was 1.21 per share. And the airline is having a growth rate of 1.23% annually. According to
Mr. Haseeb Hasan (Chairman, Sherman Securities) Pakistan has the only airline and investors
have invested a lot of money in the shares of PIA, when the situation and financial position of
the company was too strong. The PIA has to face two tragic events, the one is the 9/11, whereas
others include issues like rampant corruption, mismanagement, excessive employment on
political basis, borrow loans on higher rates, internal mismanagement etc.
According to Mr. Shadaad Soofi, Director Procurement and Purchase is of the view that
PIA has now become white elephant, an institution which the Government couldn’t even close
Down. It was a time when people outside Pakistan that is from international routes proud to be
travel from it. The airline has the finest and most trained working staff which includes (Cabin
Crew, Pilots and Aviation authorities). But as the financial position of the company goes down
the competitors takes the advantage of this, and starts recruiting the competitive staff from PIA.
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According to Sohail Hamdan the Director HR, in the past 3 years we have lost our 21
experienced pilots. 33 Aeronautical and maintenance engineers are taken over by Emirates and
other competing Airlines. Most of the staff shifted from PIA just because the Institution is under
severe financial crises and which makes the growth stagnant. The decreasing popularity and
reputation make the employees to leave the Airline and shift to any other one. Emirates being the
biggest competitor of PIA hired 80% of their staff from PIA and other local airlines, now they
are enjoying experienced people without expensing more on training them. The main issue the
airline is facing is that the government is not paying proper and the needed attention which the
institute needs. But on the other hand, they are making it weaker day by day by employing
people of no use. In the last four years 1,875 employees are directly recruited on influence basis.
It is irony of the fate that, the department didn’t have the positions for these employees but they
are created on political basis. These employees are even not accountable for anything because
they are hired on influence basis. Most of them didn’t know the Job Description and create
lobbies to secure them and their positions.
Background of PIA Airline
Dynamism in the environment has changed the way of doing business. Now safety and service
have become the major preference of customers. While the airline industry has also changed the
pace of its growth and sustainability turn into huge losses after 9/11 especially. From a number
of Airliners PIA Air holds a significant position due to its operations and service quality (Fojt ,
2006). According to PIA they are progressing towards becoming a strong airline and to address
the challenges and realize the opportunities – but we must take decisive action, as we have
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throughout our history. Safety is always the PIA group’s first priority we invest $13 million in
aircraft maintenance.
As a global industry, aviation is more exposed than almost any other sector to unpredictable
shocks business resilience responding to shocks and crisis, natural disasters, political instability
and global economic volatility all have an impact on industry performance and profitability.
Australia is located within the fastest growing economic zone in the world new realities, new
opportunities – the growth of Asia if it is to grow and thrive – and continue driving economic
activity in Australia – the PIA Group must capitalize on the opportunities Asia presents (Annual
report of Lufthansa. 2011, pp. 21 – 28).
According to the financial analysts of JS group Ahmed Islam, if PIA addresses some important
issues it would again tore the best position in the whole world again. Some of them are as
follows:
a) Corruption
b) Bad Governance (Labor Union s and Strikes)
c) Extra recruitment of employees and workers.
d) Circular debt
e) Political influence
f) Falling reputation
g) Safety issues.
The Supreme Court of Pakistan banned the recruitment of new staff to the state airline
"Pakistan International Airlines' (PIA) in the course of the application the organization expressed
concern about alleged corruption and mismanagement in the PIA, including the purchase of
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aircraft at inflated prices and the cancellation of hundreds of flights this year, said the channel
"Dawn News". At trial, the board brought to court for the next meeting ACA Chairman
Lieutenant General (Retd) Malik Asif Hayat and Director General of Civil Aviation Agency
Nadeem Yusufzaya, media reported. Court required the ACA report on the recruitment of
specialists and adjourned the hearing for two weeks.
Labor Unions Strike
According to Singapore's "Lianhe Zaobao" reported on the 11th, the Pakistan International
Airlines employees strike entered the third day, nearly 100 flights were grounded, 25,000
passengers were affected, causing airlines lost about Rs. 1170 million..
The part of the staff of the airlines and lead to a strike against management with Turkish Airlines
signed a route-sharing agreement; They also demanded the expulsion of Managing Director of
the Company. Pakistan International Airlines Pilots Association said, the staff will continue to
strike until sharing agreement on the routes in the plan is terminated; the managing director to
leave and the reinstatement of all employees were suspended from far.
Banned For Safety Issues
Islamabad (Pakistan) - A plane of the airline Pakistan International Airlines Pakistan has been
victim of a fire at the international airport of Islamabad (Pakistan) after the APU system,
auxiliary power unit began to catch fire.
The aircraft, a Boeing 777-200, registration AP-BGL, flight PK701, which would make the
connection between Islamabad International Airport and Manchester International Airport
(United Kingdom) was ready for departure and passengers had embarked when sparks and
smoke came out of the back of the unit which is located between the other auxiliary power unit
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that provides power when the aircraft is on the ground. Fire services are immediately intervened
to extinguish the fire start. Surprisingly, the passengers were not landed and the APU was simply
disconnected so that the device can however take off with the minimum of delay, about two
hours. Recall that for all practical purposes the Boeing 777 aircraft are the only company not to
be blacklisted on European soil.
The business loss of PIA has come to 35% to PKR66.22 billion. However, non-operating costs
related to loans rose, rose nearly 50%. Operating profit also declined to PKR5.94 billion
PKR8.45 2006. Currently, PIA is ranked among the Asians top 20 Airliners. PIA still has the
ability to regain and remark the historical position. But due to a number of reasons, PIA’s market
share is currently declining which was at times greater than the world best airliners. Despite of
number of difficulties and issues the airline still inhabit a protuberant position in the national
circuit to be carrying the flag position the national but current threat to national flag carrier. The
company has faced huge losses of more than Rs. 30 Billion in total; on the other hand, the debts
of PIA are piling up in dollars. Expenditures of the company going and growing, but profits are
small. All the money is gone and the shareholders are now facing economic downturn. In the last
fiscal year, PIA has dropped its share from the international market up 70%. International front
things were not so different PIA, when the market share of the national airline international
market fell 48-43%. Yield IRP decreases. PIA share price closed at Rs 5.25 in the in 2008 shows
a capital loss of about 14% since last month. On May 2, 2008, the share price of the company
was 6.03 Rs. But in 2011 the share price of PIA has decreased up to Rs. 4.74 and is now become
Rs. 1.32. The declining share price of the airline is because of rampant corruption,
mismanagement and political interference, the Pakistan International Airlines is currently facing
a loss of about 40 million rupees a day. The confidence of local and international shareholders is
20. Analysis of PIA & Reasons of Poor Performance
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declining day by day, most of the people are of the view that time comes when Government of
Pakistan has to withdraw from PIA. There are still chances of hop for the Airline, said Captain
Mushtaq.
From a pileup of problems which the airline is facing some of them are given below.
During recruitment:
PIA is an organization which has more than 18,000 employees. The fleet includes 43 aircraft.
This operatizing aircrafts are only 33. If we compare this ratio with the industries overall average
ratio it’s between 150 – 250 employees. This situation describes the issue of overstaffing clearly.
And it also describes the company's position clearly; this would increase the cost per employee
and declines the overall productivity.
Employee Motivation Level:
The reputation of PIA is declining in every segment, be it flight Safety or Service quality. This
would decrease the employee motivation level and on the other hand, it is overstaffing which is
making the situation more difficult. Staff members didn’t feel confident in and try to get other
organizations. It would also decrease the motivation level as well as the decision power also.
Nepotism and political involvement in the recruitment and selection:
PIA is facing the worst financial crises of all times but on the other hand, the airline is recruiting
as many employees as then can but the irony of the fate is that these employees are hired on
heavy salaries, without no use. These employees includes: managers and upper level staff who
are hired at not only higher salaries but on higher grades too. According to Mr. kamal Ahmed, in
the recent government more than 6500 employees are hired on different position out of which
65% are hired directly on political basis. The deputy general manager today is another example
21. Analysis of PIA & Reasons of Poor Performance
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of a pilot profession and currently deputy general manager still fly a few hours a week to keep
your license away.
The lack of experience when it comes to the aerospace industry and top management:
The three former presidents of PIA include Mr. Tariq Kirmani who was from PSO, Mr.
Zafar Khan was PTCL and Mr. Ahmed Said was not an experience in the service sector in the
aviation industry. What can they contribute to the organization without such knowledge?
Lack of Planning:
All the top most airlines of the world plan each and every aspect before. But the
management structure of PIA is designed in such a manner that, there is authority clash between
the departments and if any of the disagreement arises between the departments, the problem will
become a political issue at PIA.
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DATA ANALYSIS
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Data analysis
For the purpose of data gathering a questionnaire is filled with the lower management of PIA.
Through this questionnaire following facts and figures are disclosed to us.
60% of low level management thinks that they are not part of decision making.
The second question shows that only 20% employees are not happy with the salary
package.
Response of question six indicates that 60% employees are satisfied and 40% are partly
satisfied with the facilities provide in the department. Majority of the employees are
satisfied with quality of training program. Repair cost is the major cause of loss to PIA in
the opinion of employees.
80% employees are satisfied with code of conduct.
60% employees admit the political influence on working of PIA. Majority of employee
suggest that proper training is needed to make the organization successful.
60% of the employees are not happy with high transfer rate. On the other hand data
collecting from customers reveal the following facts.
50% of customers are not happy with the services of PIA. Non punctuality of departure
and arrival of flights also displeased the customers. Many customers angry with ticket
getting process.
By taking a view of profit and loss account of PIA that indicate many of the expenses
increases at a very high rate which causes loss to PIA.
These expenses are fuel cost that increases due to rapid rise in oil prices in recent years.
Repairing expenses also becoming the major of cost that is very as compared to others
companies of same business.
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Due to war against terrorism in Afghanistan is also badly affected the revenue of PIA.
Due to this war the insurance expenses also increases. And it also causes to decrease the
number passengers.
As the value of rupee decreases which causes a loss to company.
Financial Standing of PIA
Income Statement
Revenue 26,764m
Net Income -9m
EPS - Net Income - Diluted -1.02
Revenue per Share 23.96
Total Assets 21,382m
Total Liabilities 15,198m
Shareholders' Equity 6,184m
Profitability Ratios 06/30/2011 06/30/2010 06/30/2009
ROA % (Net) 1.23 0.56 0.59
ROE % (Net) 4.14 1.92 2.04
ROI % (Operating) 3.47 2.25 2.06
EBITDA Margin % 12.88 11.92 10.9
Calculated Tax Rate % 24.58 34.07 29.59
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Liquidity Ratios 06/30/2011 06/30/2010 06/30/2009
Quick Ratio 0.78 0.81 0.78
Current Ratio 0.9 0.93 0.89
Net Current Assets % TA (2.85) (2.05) (3.73)
Debt Management 06/30/2011 06/30/2010 06/30/2009
LT Debt to Equity 0.89 0.86 0.86
Total Debt to Equity 0.98 0.96 0.96
Interest Coverage 2.34 3.25 28.48
Asset Management 06/30/2011 06/30/2010 06/30/2009
Total Asset Turnover 0.73 0.69 0.73
Receivables Turnover 14.08 12.86 11.69
Inventory Turnover 43.11 48.41 62.5
Property Plant & Equip Turnover 1.14 1.12 1.19
Cash & Equivalents Turnover 4.14 3.76 4.68
Per Share 06/30/2011 06/30/2010 06/30/2009
Cash Flow per Share 0.79 0.58 0.55
Book Value per Share 2.71 2.62 2.53
Share price during last 5 years
Share Price
2008 4.65
2009 3.28
2010 2.91
2011 1.812
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2012 1.257
Industry Overview
The international airline industry has experience diminishing growth in the past five years due to
a slowdown in demand, high fuel costs and falling profitability. The number of participants in
the International Airlines industry has grown, with the introduction of Tiger Airways and Air
Asia X in 2007. Strong competition has resulted in operators leaving the industry, such as Swiss
Airlines and Japanese Airlines. International Airline Industry To and from Australia, the total
number of passengers carried on international flights has increased at a 5.5% annualized rate
over the past five years. In 2011, passenger services and the rest from freight generated 90.1% of
total revenue. Industry analysts forecast revenue growth at an average rate of 2.7% per annum,
due to lower consumer and business sentiment. Material and supply expenses account for 47% of
industry revenues, with fuel accounting for 20- 30% of all operating expenses. Fuel prices have
increased strongly over the past five years at an average of 26.2% per annum. Wages are another
major expense accounting for an estimated 12.2% of revenue. Average wages are estimated at
$113,249 per annum per person. Medium industry concentration with the top four players
accounting for 47.6% of industry revenue High and increasing competition on price and quality,
as passenger preferences change. High but decreasing barriers to entry as costs to purchase
aircrafts, machinery and skilled labor are very high and there is limited airport capacity (Bragg &
Steven, 2004, pp 22 - 29).
Barriers are decreasing as the foreign ownership cap has been raised and the Government has
allowed 100% foreign owned companies to begin operations to and from Australia. Medium and
27. Analysis of PIA & Reasons of Poor Performance
MBA Page 27
increasing industry globalization as increasing levels of international trade results in higher
demand for international air services. Australian Domestic Airline Industry the Australian
domestic airline industry appears to be maturing as growth slows following rapid growth in the
1990s and early 2000s with the introduction of low-cost airlines. Due to increasing competition
in the sector, revenue growth is forecast to average 0.9% per annum in future years. Materials
and supplies expenses account for 48% of industry revenue. Fuel costs account for 10- 30% of
operating expenses. Depreciation accounts for an estimated 8.3% of operating revenue, which
has risen due to increasing capital investment.
Differences between Lufthansa and PIA airline for the investors
Managers should have the ability to assess performance of decisions they have made or
intend to make, through structured and robust financial analysis. Managers need tools to forecast
or predict as they struggle to make decisions on a daily basis to execute business strategy for the
company. Financial analysis tools can drive projections and predictions in many areas of the
business, from planning for production and distribution to decisions on a product or service.
Managers can use these tools to both assess and improve business performance (Bragg & Steven,
2004, pp 22 - 29).
Ratio analysis allows management too quickly and efficiently addresses concerns like return on
capital investment and the company’s profit margin
Ratio analysis allows management too quickly and efficiently addresses concerns like
return on capital investment and the company’s profit margin. Ratio analysis can be an effective
and useful management tool if ratios are calculated on items that are meaningful and where
practical steps can be taken to make improvements in business operations based on the
28. Analysis of PIA & Reasons of Poor Performance
MBA Page 28
information the ratios reveal. Vertical analysis is used to develop insight into the economic
characteristics of different industries and of different firms in the same industry. This can make
you aware of developments and areas of opportunity that can make your business more
competitive, and ultimately more profitable. Financial statements will provide managers with
valuable information, the above-mentioned comparisons and analysis can be perform and can
give managers insight into how they can better manage the business can improve
profitability (Bragg, 2004).
COMPARISON OF PIA WITH LUFTHANSA
Lufthansa Financial Position
Lufthansa is known for surviving financial turmoil in the past when others were engulfed
in bankruptcy and receiving bailout packages their governments. Lufthansa was close to
bankruptcy and facing fierce competition from low cost no frills airlines the company sold fifty
percent of its stake in the Thomas Cook Tourism Company to Karstadt Quelle. They also sold
parts of LSG Sky Chef which handled catering. Lufthansa wanted to raise money and cut cost.
Before this strategy Lufthansa acquired Swiss Air as a way to expand globally. They used that
strategy to look for share holdings in other airlines. That was the reason why they did away with
Ground Globe Airport Service and financial divestments in order to concentrate on corporate
strategy to expand internationally (Bragg & Steven, 2004, pp 22 - 29).
PIA Financial Position
PIA is on the verge of intense losses and the airline is of the view to bankruptcy. If PIA was a
private Airline it would be forced shutdown as its financial position is under huge distress. The
29. Analysis of PIA & Reasons of Poor Performance
MBA Page 29
airline is under debt of 11 billion and it is increasing day by day. On the other hand, the financial
losses of PIA grew by 31% in the last four years, while their performance standard decreases up
to 17%.
Strategic Development at LUFTHANSA
Lufthansa used the low cost moving strategy because there were high barriers to mergers and
acquisitions of airlines due to regulations. The potential risks Lufthansa may encounter since one
third of the work force is non-German, the company can easily lose its workforce. Morale can
also be low with existing German employees due to lack of integration into the normal flow of
communications and consensus building. A potential risk for Lufthansa is not having employees
trained properly because training programs has to be developed in different languages and for
different cultures.
Management is also faced with the new emergence of issues concerning global warming.
Therefore, Lufthansa has to strategize a way to reduce emissions from its air traffic without the
risk of losing their license in certain countries. Some of Lufthansa organization strategy is
incorporated into the Star Alliance organization structure which is made up of corporate office,
commercial, products and services, loyalty marketing, and information technology. Lufthansa
itself consists of Lufthansa Holdings and Lufthansa Regional. Within this structure Lufthansa
manages its organization effectively with various departments such as catering, logistics,
passage, MRO, IT Services, leisure and travel, Swiss Air, Lufthansa Regional and Lufthansa’s
Core Fleet.
30. Analysis of PIA & Reasons of Poor Performance
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Strategic Development at PIA
PIA is of the view to design a cost saving strategy but the company is under huge debts and
therefore, it is bound to implement the old strategy of recovering the losses through increasing
the fair prices. Sudden change in the Top management of PIA retains from developing a
corporate Strategy for the Airliner. If they design a strategy the top management changes and the
implementation plan goes to trash bin. But now PIA is planning to implement a long term
strategy which saves the Airline from being closure.
Human Capital Management at Lufthansa
In order to develop human capital at Lufthansa the company should have an overall strategic
plan, annual performance goals; analyze the outcome of the strategic plan and how it is used in
decision making. All human capital plans should be integrated with Lufthansa’s strategic plan.
The management team in each organizational structure should meet the needs of its customers
efficiently and effectively. A workforce plan and summary should be updated frequently,
training and recruited will have to updated in all languages and cultures.
Human Capital Management at Lufthansa
PIA is overburdened by useless staff. The analysis and interviews from the management tell us
that, after huge and rampant corporation every department of the Airline is blessed with an extra
staff of 35%. Most of the staff is useless and even their need is nothing but they all are recruited
on special orders and without a merit list. How can an organization grow with this kind of worst
situation?
Markets
31. Analysis of PIA & Reasons of Poor Performance
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In airline markets, advertising is the most important promotional tool. For Lufthansa, company
use IMC promotional tool that creates favorable and unique images to introduce the product,
routes and aircraft of Lufthansa. Direct marketing One of the growing usages of IMC tools by
Lufthansa is direct marketing. The company has started to sell products to customers with
various activities, under direct marketing including direct selling, telemarketing, web site and
magazines, in terms of direct marketing. Direct marketing are playing now a vital role in getting
the products into the view of the public. Lufthansa use different methods to direct marketing with
these products. For example, Lufthansa published three in-flight magazines to introduce the
product, routes and aircraft of Lufthansa (Bragg & Steven, 2004, pp 22 - 29).
Image of Lufthansa
Lufthansa build a positive brand image in the environmental protection. Nowadays,
environmental protection is an important topic around the world. Everyone advocate protecting
the Earth. Lufthansa also support those topic, Lufthansa is proudly develop an environmentally
sustainable strategy that aims at protecting natural resources and reducing air pollution and then
Lufthansa try to do their best in the recycling effort and selecting the most fuel efficient aircraft.
It shows that Lufthansa want to build an environmental protection brand in the airline market. It
can help Lufthansa build a positive image, which can accept by the social .when Lufthansa create
a positive image they can attracts current and potential customers (Cento, 2009).
Now, Lufthansa have the maturity web site, differences cultural can be met on the web. It a great
opportunity for Lufthansa introduce their produce, routes and aircraft to the world. Lufthansa
create a maturity website, which can offer options for language of preference on the homepage.
32. Analysis of PIA & Reasons of Poor Performance
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Image of PIA
PIA after all this is in news with bad reputation, the airline is losing international customers who
once feel proud to fly from PIA. The image of PIA has become worst after being in rumors for
different cases: especially in Corruption and nepotism. even the residents of Pakistan rarely
travel from PIA even if they had no other choice except PIA.
Financial Performance
Financial Performance In 2010/2011 the Qantas Group reported a strong result despite a number
of significant challenges, with all segments of the Group profitable. Underlying PBT was $552
million, up 46 per cent on 2009/2010. The result was achieved through improvements in earnings
across all operating segments and despite the $224 million financial impact of natural disasters
and over $200 million of ongoing losses in Qantas’ international business (Roberts, Weetman &
Gordon, 2008).
Aircraft used by Qantas are operated on both financial and operating leases. Under an operating
lease, assets and liabilities are off-balance sheet and only rent expenses are recognized. Under a
finance lease asset, liability and depreciation expenses are recorded. Since these two accounting
choices have different impacts on the financial statements, utilizing both gives the company
enough flexibility to manage both the assets and profits of Qantas. In 2011 passenger aircraft
residual value and major cyclical maintenance cost for operating leases were revised, perhaps
because of poor aircraft conditions and certain incidents occurring.
The efficiency ratios Analysis Average Age of Receivables and Accounts Payable Payment
Period have shown a steady improvement over these years. Given the high debt to equity ratio, it
is reassuring to know the firm is improving its ability to meet debt obligations efficiently. The 27
33. Analysis of PIA & Reasons of Poor Performance
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days collection period in 2011 indicates the company is able to collect its receivables before its
payables come due. Asset turnover has also dropped from 2007 and implies the business is not
generating adequate revenue on the assets of the company. This could potentially create issues if
returns remain low and expenses increase (Nobes & Parker, 2008, pp. 112).
Financial Highlights
In particular, Fixed Asset Turnover indicates that the company manages a significant portion of
their long-term investments in PPE and given net sales, the recovery of total investment is
difficult given the current level of Total Assets Turnover. Performance Analysis PIA had
revenue declined by 4.80% this quarter. The Gross Profit shows a steep decline from 2008
dropping from 6.54% to 0.90%. Net Profit Margin depicts a healthier decline from 1.76% in
2009 to 3.21% in 2011. Profit after interest has increased by 87% because of a decrease in other
expenses, depreciation and amortization charges. Return on Equity has a decreased from 16.24%
in 2008 to just 2.03% in 2009, before recovering slightly in 2011. Profit Margin indicates that
only a small amount of revenue was available to the company after major expenses. Net
Operating Income to Capital and Return on Investment shows the declining effectiveness of
investment management (Saudagaran, 2004).
Table of key difference point
Differences Lufthansa PIA
International Recognition Internationally recognized Declining Recognition
Goodwill Moderate Worst
34. Analysis of PIA & Reasons of Poor Performance
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Associates Equity and debt method Equity method
Asset valuation Historical cost Market value (fair value)
Depreciation charges Tax based Economic based
Inventory valuation - FIFO
Finance leases Moderate level Excessive level
Deferred taxes Accrued Accrued
Reserves for income
smoothing
Yes No
Conclusion
The international airline industry has experience diminishing growth in the past five years due to
a slowdown in demand, high fuel costs and falling profitability. Fuel prices have increased
strongly over the past five years at an average of 26.2% per annum. High and increasing
competition on price and quality, as passenger preferences change. High but decreasing barriers
to entry as costs to purchase aircrafts, machinery and skilled labor are very high and there is
limited airport capacity.
Performance evaluation is an important component of managing a business. Managers need
feedback to evaluate, how well they have accomplished business strategy and managed key
business process. Managers need to be able to link strategy with profitability.
35. Analysis of PIA & Reasons of Poor Performance
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Accounting analysis of PIA airline, the airline is in worst condition. Lack of proper management,
rampant corruption, worst financial performance and circular debt are some of the issues which
the company is dealing with. PIA was one of the biggest and top most airline in the world having
experienced staff, and proper management structure but Government interference has lead the
Airline to a situation which has now become uncontrollable for anyone.
36. Analysis of PIA & Reasons of Poor Performance
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CLOSING UP
37. Analysis of PIA & Reasons of Poor Performance
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FINDINGS FROM THE RESEARCH
Some of the findings from the research are as follows:
PIA (Pakistan International Airline) is the flag bearing airline of Pakistan. The airline was
once the proud of Pakistan but know it is under heavy debts from Government and from the
private sector. The share price of the Airline is has decreased up to 43% in the last 5 years
period. Investors are not willing to invest in a single share of PIA. It was a time when people
from Pakistan and from different parts of the world feel proud to fly with PIA. After Hajj
Corruption case and many others like the same, people feel bad about the airline. The fair of the
airline is also higher from the domestic competing airline and this becomes the reason of
declining market share too. Despite of the worst financial performance of the airline is having
other issues too. One of the main issues is political intervention in decisions and management of
PIA. The major decisions cannot be taken by the management itself. Corruption in tenders has
become a common example now. The international airline industry has experience diminishing
growth in the past five years due to a slowdown in demand, high fuel costs and falling
profitability. Fuel prices have increased strongly over the past five years at an average of 26.2%
per annum. High and increasing competition on price and quality, as passenger preferences
change. High but decreasing barriers to entry as costs to purchase aircrafts, machinery and
skilled labor are very high and there is limited airport capacity.
Internationally the demand has declined but now after the financial recovery in US the situation
is becoming profitable against and the airlines are progressing again. While PIA is on the same
trend of ignoring things
38. Analysis of PIA & Reasons of Poor Performance
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Performance evaluation is an important component of managing a business. Managers need
feedback to evaluate, how well they have accomplished business strategy and managed key
business process. Managers need to be able to link strategy with profitability.
Accounting analysis of PIA airline, the airline is in worst condition. Lack of proper
management, rampant corruption, worst financial performance and circular debt are some of the
issues which the company is dealing with. PIA was one of the biggest and top most airline in the
world having experienced staff, and proper management structure but Government interference
has lead the Airline to a situation which has now become uncontrollable for anyone.
CONCLUSION
The vision and mission of PIA states that it has to go up with the people of Pakistan and
is established with a view to lead the airline industry. The airline has gained its name and
recognition in the market within a short span of time but after a number of issues, it derails from
the earned reputation. One rumor is that, Indus air which belongs to a political party would
become the biggest competitor of PIA in the coming future and would eat up the whole share of
PIA. It has not only attracted the staff of PIA by offering them higher salary packages but is also
taking up hands on its routes.one of the competitive edge which PIA has on other airlines is its
routes and Government Subsidy. But irony of the fat that none of them works and PIA, has
become a doubtful airline in the future.
39. Analysis of PIA & Reasons of Poor Performance
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RECOMMENDATIONS
PIA should focus on developing strategies which change the whole situation.
The Airline should define new policies of hiring employees and making goals.
The goals should be flexible and achievable
The Airline should have to purchase new airplanes as to support the seating capacity and
enhance safety
PIA should regulate policies in such a manner which banned the Government
intervention in the airline
Corruption and Loop holes should be avoided and need to have a strict action against
them.
40. Analysis of PIA & Reasons of Poor Performance
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References
Data Retrieved From: www.pia.com.pk Dated, 12th
February, 2013
Bornhorst, T., Brent R., J. & Sheehan, L. (2010). Determinants of tourism success for DMOs &
destinations: An empirical examination of stakeholders' perspectives, Tourism
Management, vol. 31, no. 5. Pp. 572-589
Buhalis, D. (2000). Marketing the competitive destination of the future, Tourism Management,
vol. 21, no. 1. Pp. 97
Costa, C. (2006). Tourism planning, development and the territory, in Buhalis, D & Costa, C
(ed.) Tourism Management Dynamics – trends, management and tools, Elsevier Ltd.,
Oxford, ch. 25. Pp. 395
Crouch, G. & Ritchie, J. (1999). Tourism, Competitiveness, and Societal Prosperity, Journal of
Business Research, vol. 44, no. 3. Pp. 137-152
Fayos-Solà, E. & Bueno, A. P. (2001). Globalization, National Tourism Policy and International
Organizations, Tourism in the Age of Globalization, London: Routledge. Pp. 45-65
Johnson, P. & Thomas, B. (1999). Tourism Research and Policy: An Overview, Perspectives
on Tourism Policy, London: Mansell. Pp. pp. 1–13
Palmer, A. & Bejou, D. (2002). Tourism Destination Marketing Alliances, Annals of Tourism
Research, vol. 22, no. 3. Pp. 616
Ritchie, J. & Crouch, G. (2000). The competitive destination: a sustainability perspective,
Tourism Management, vol. 21, no.1. Pp. 1-35
41. Analysis of PIA & Reasons of Poor Performance
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Appendix
QUESTIONAIRE
Q1. What job function do you work within?
Planning
Finance
Operations
Administration
Senior management
Other (please specify)?
2
4
3
5
2
0
Planning Finance Operations Administration Senior
management
others
42. Analysis of PIA & Reasons of Poor Performance
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Q2. For how long have you been working for PIA?
Less than 1 year
1-5 years
5-10 years
More than 15 years
Experience Number Of Respondents
Less than 1 year 2
1-5 years 5
5-10 years 4
More than 15 years 6
2
5
4
6
Less than 1 year 1-5 years 5-10 years More than 15 years
43. Analysis of PIA & Reasons of Poor Performance
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Q2. In your opinion is the Airline working smoothly as it does before 8 years?
No
Yes
Feedback
Reviews Number of People
Yes 12
No 4
Feedback 4
12
4 4
Yes No Feedback
44. Analysis of PIA & Reasons of Poor Performance
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Q3. In your personal opinion why PIA is in huge losses?
Rampant Corruption
Bad Management
Over Employed
Lack of Planning
Old Planes and Safety Issues
Others (please specify)
Activity Number of Respondents
Rampant Corruption 4
Bad Management 6
Over Employed 3
Lack of Planning 2
Old Planes and Safety Issues 4
Others
4
6
3
2
4
Rampant
Corruption
Bad
Management
Over Employed Lack of Planning Old Planes and
Safety Issues
Others
45. Analysis of PIA & Reasons of Poor Performance
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Q4. What makes the people dissatisfied from the service of PIA?
Service
Attitude
High Fare
Employee Behavior
Late Arrival & Take off
Others (Please Specify)
Activity Number of Respondents
Service 5
Attitude 3
High Fare 3
Employee Behavior 2
Late Arrival & Take off 6
0 0 0 0 0
5
3 3
2
6
Service Attitude High Fare Employee
Behavior
Late Arrival &
Take off
Others (Please
Specify)
46. Analysis of PIA & Reasons of Poor Performance
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Q5. Being an internal employee what is the major problem of PIA?
Management
Planning
Financial Stability Circular Debt
Government Influence and Intervention
Others (please specify)
Activity Number of Respondents
Management 6
Planning 4
Financial Stability 3
Government Influence 5
Others
6
4
3
5
Management Planning Financial Stability
Circular Debt
Government
Influence and
Intervention
Others (please
specify)
47. Analysis of PIA & Reasons of Poor Performance
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Q6. Why the management of PIA is not focusing on these core issues?
Weak Management
They don’t Care
Lack of Business Expertise
Other Requirements (Please Specify)
Activity Number of Respondents
Weak Management 8
They don’t Care 4
Lack of Business Expertise 5
Other Requirements (Please Specify)
8
4
5
Weak Management They don’t Care Lack of Business Expertise Other Requirements (Please
Specify)
48. Analysis of PIA & Reasons of Poor Performance
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Q7. Is PIA able to solve these problems?
Yes
No
Other Factors (Please Specify)
Activity Number of Respondents
Yes 12
No 5
Others
12
5
Yes No Others
49. Analysis of PIA & Reasons of Poor Performance
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Q8. What does PIA do to secure their position again?
Management Focus
Plan Activities
Leadership Skills
Other Factors (Please Specify)
Activity Number of Respondents
Management Focus 5
Plan Activities 5
Leadership Skills 6
Other
5 5
6
Management Focus Plan Activities Leadership Skills Other
50. Analysis of PIA & Reasons of Poor Performance
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Q9. What are the major areas in which PIA has to focus in order to make their service
better?
Flight Safety
Human Resource Development
Increase Financial Standing
Flight timings
Customer satisfaction
Others (Please Specify)
Activity Number of Respondents
Flight Safety
5
Human Resource Development
4
Increase Financial Standing
5
Flight timings
6
Customer satisfaction
3
0
1
2
3
4
5
6
7
Flight Safety Human Resource
Development
Increase Financial
Standing
Flight timings Customer
satisfaction
Axis Title
51. Analysis of PIA & Reasons of Poor Performance
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Contents
INTRODUCTION......................................................................................................................................3
INTRODUCTION.............................................................................................................................................4
BACKGROUND...............................................................................................................................................7
PROBLEM STATEMENT..................................................................................................................................7
SIGNIFICANCE OF THE STUDY .......................................................................................................................8
SCOPE OF THE STUDY....................................................................................................................................8
RESEARCH DESIGN...............................................................................................................................9
Research Design & Methodology .............................................................................................................10
RESEARCH DESIGN ...................................................................................................................................10
RESEARCH OBJECTIVES ...........................................................................................................................10
SOURCES OF DATA....................................................................................................................................10
A. Primary Source....................................................................................................................................10
B. Secondary Source................................................................................................................................10
SECONDARY SOURCES.............................................................................................................................11
RESEARCH INSTRUMENTS.......................................................................................................................11
I. Questionnaire Analysis .......................................................................................................................11
II. Discussion analysis.............................................................................................................................11
QUALITATIVE QUANTITATIVE RESEARCH ............................................................................................11
UNIT OF ANALYSIS....................................................................................................................................11
LITERATURE REVIEW.......................................................................................................................12
REVIEW OF THE RELATED LITERATURE.......................................................................................................13
US Airline Industry ..................................................................................................................................13
Indian Airline Industry.............................................................................................................................14
Pakistan Airline Industry.........................................................................................................................15
Background of PIA Airline ...........................................................................................................................16
Labor Unions Strike.............................................................................................................................18
Banned For Safety Issues ....................................................................................................................18
During recruitment: ............................................................................................................................20
Employee Motivation Level: ...............................................................................................................20
Nepotism and political involvement in the recruitment and selection:.............................................20
The lack of experience when it comes to the aerospace industry and top management: ................21
52. Analysis of PIA & Reasons of Poor Performance
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Lack of Planning: .................................................................................................................................21
DATA ANALYSIS ..................................................................................................................................22
Data analysis ...............................................................................................................................................23
Financial Standing of PIA.............................................................................................................................24
Share price during last 5 years....................................................................................................................25
Industry Overview.......................................................................................................................................26
Differences between Lufthansa and PIA airline for the investors..............................................................27
COMPARISON OF PIA WITH LUFTHANSA....................................................................................................28
Lufthansa Financial Position ...................................................................................................................28
PIA Financial Position..............................................................................................................................28
Strategic Development at LUFTHANSA...................................................................................................29
Strategic Development at PIA.................................................................................................................30
Human Capital Management at Lufthansa.............................................................................................30
Human Capital Management at Lufthansa.............................................................................................30
Image of Lufthansa .................................................................................................................................31
Image of PIA............................................................................................................................................32
Financial Performance ............................................................................................................................32
Financial Highlights .....................................................................................................................................33
Conclusion...................................................................................................................................................34
CLOSING UP...........................................................................................................................................36
FINDINGS FROM THE RESEARCH.................................................................................................................37
CONCLUSION...............................................................................................................................................38
RECOMMENDATIONS .................................................................................................................................39
References ..................................................................................................................................................40
Appendix .....................................................................................................................................................41