Pakistan International Airlines (PIA) traces its origins back to 1946 when it was established as Orient Airways to serve as Pakistan's national carrier after it gained independence. Over the years, PIA has accumulated massive financial losses, reaching over $20 billion in 2010 due to issues like overstaffing, hiring unqualified employees, and high fuel and maintenance costs. While PIA owns valuable international assets like hotels in New York and Paris, the airline is under heavy debt of over $1 billion and its continued financial troubles threaten its long-term viability.

1. Case Study

2. HISTORY
Pakistan International Airlines', or 'PIA' for short, can trace its
beginnings to the days when Pakistan was not a nation, rather a
region of British India. In 1946 Muhammad Ali Jinnah realized the
need for an airline network for the forming country and called
upon the help of an industrialist Mirza Ahmad Ispahani to
develop a flag carrier for the nation. Meanwhile, an airline called
'Orient Airways, registered in Calcutta, was formed on 23 October
1946. In February 1947, the airline brought three DC-3 airplanes
from a company in Texas, and in May of that year the airline was
granted a license to fly. Services were started in June from Kolkata
to Sittwe and Yangon. This was the first post-war airline flight by a
South Asian registered airline company

3. PIA FINANCIAL DATA
Year
Revenues
(PKR in
Million)
(Loss) (PKR in
Million)
Employees
(Ave.)
2010
107,532
(20,785)
18,019
2009
94,564
(5,822)
17,944
2008
88,863
(36,139)
18,036
2007
70,481
(13,399)
18,149
2006
70,587
(12,763)
18,282
2005
64,074
(4,412)
19,263
2004
57,788
2,307
19,634

4. Passenger Traffic
Year
Revenue
Passengers
(Million)
Passenger
Load Factor
Average
Passenger
Stage
Distance
(Statute KM)
2010
5.538
74%
2,827
2009
5.535
70%
2,510
2008
5.617
71%
2,479
2007
5.415
67%
2,527
2006
5.732
69%
2,639
2005
5.499
70%
2,638

5. Pakistan International Airlines
destinations
parked in Islamabad.

6. PIA’S FLEET
•
•
•
•
•
•
40 PLANES
BOEING 777 (9)
Boeing 747 (6)
Boeing 737 (6)
Airbus A310 (12)
ATR42
(7)

7. PIA PROFITABLE INVESTMENT
&ASSET
• The Roosevelt Hotel (New York)
The Roosevelt Hotel is at Madison Avenue and 45th Street in
midtown Manhattan, named in honor of President Theodore
Roosevelt. The New York City hotel opened on September 22,
1924. The hotel closed in 1995 and reopened in 1997 after a
$65-million extensive renovation.
There are a total of 1,015 rooms in the hotel, including 52 suites.
The 3,900 square feet (360 m2) Presidential Suite has four
bedrooms, a kitchen, formal living and dining areas, and a
wrap-around terrace.
The rooms are traditionally decorated, with mahogany wood
furniture and light-colored bed coverings.

10. SCRIBE HOTEL (PARIS)

11. The Hotel Scribe is a 19th-century building located in the
centre of Paris, within 200 meters of the Opera, and 400
meters from Place Vendome. Its 213 guestrooms over six
floors feature light, traditional decor with modern
touches. All offer flat-screen televisions with Internet
connections, satellite channels and pay movies, multiline phones, safes . Bathrooms include robes,
shower/tub combinations and complimentary designer
toiletries.

12. PIA’S FAKE DEGREE EMPLOYEES
Pakistan International Airlines has fired 200
employees for presenting fake degrees at the
time of hiring. PIA Director Public Relations
Syed Sultan Hassan told The Express Tribune
that employees were served warning notices
multiple times and given a chance to prove
their documents were valid before being
handed pink slips.

13. PIA DEBT
• MD PIA Ijaz Haroon has said that PIA had declared a
loss of Rs41 billion in the last two years and the
national carrier is under a debt of Rs1.11 trillion
whereas its total net worth is no more than Rs16
billion. According to details Senator Tariq Azeem
presided over the meeting of Senate’s standing
committee’s subordinate body on defence and
reviewed the five year revival plan for PIA. In this
meeting MD Ijaz Haroon informed the subordinate
committee that PIA had a deficit of Rs41.700 million
in the last two years.

14. REASONS FOR LOSS
•
•
•
•
OVER STAFFING
LACK OF COMPETENT EMPLOYEES
HIGH FEUL COST
HIGH MAINTENANCE COST

15. THE END