1) The aviation industry in Pakistan has historically been dominated by the state-owned PIA, but faced increasing competition from private airlines starting in the 1990s.
2) However, most new private airlines failed, leaving PIA, Shaheen Air, and Air Blue as the major carriers currently.
3) PIA has faced significant losses despite government support, demonstrating the need to privatize the airline to increase efficiency and fair competition.
Air India Downfall-A case study of a drowning ship.
Diksha Singh , LL.M (Investment and Securities Law)
National Institute of Securities Market, Maharashtra
email- dikshasingh1860@gmail.com
Air India Downfall-A case study of a drowning ship.
Diksha Singh , LL.M (Investment and Securities Law)
National Institute of Securities Market, Maharashtra
email- dikshasingh1860@gmail.com
Employees at Air India are not getting their salaries for 3 consecutive months. Yet they are continuing to work. How is Air India able to achieve this. This is as part of a project submission at college.
Strategic marketing report on guna airlinesSubarn Pant
The firm in its initial years was into manufacturing scooters and auto rickshaws. It also enjoyed the lion’s share of the Indian two wheeler markets for a long duration of time. In the late Eighties and early nineties the market made a major shift in the type of vehicles on offer. New competitors like Yamaha and Hero-Honda came out with motorcycles, which were more powerful, better, looking and easier to handle. As such the consumers
This word file contains the detailed analysis of Pakistan's Airline Industry with perspective to Marketing Concepts such as SWOT Analysis, BCG Matrix, Porter's Generic Strategies and Pest Analysis. The report also contains the Marketing plan for Serene Air International.
Employees at Air India are not getting their salaries for 3 consecutive months. Yet they are continuing to work. How is Air India able to achieve this. This is as part of a project submission at college.
Strategic marketing report on guna airlinesSubarn Pant
The firm in its initial years was into manufacturing scooters and auto rickshaws. It also enjoyed the lion’s share of the Indian two wheeler markets for a long duration of time. In the late Eighties and early nineties the market made a major shift in the type of vehicles on offer. New competitors like Yamaha and Hero-Honda came out with motorcycles, which were more powerful, better, looking and easier to handle. As such the consumers
This word file contains the detailed analysis of Pakistan's Airline Industry with perspective to Marketing Concepts such as SWOT Analysis, BCG Matrix, Porter's Generic Strategies and Pest Analysis. The report also contains the Marketing plan for Serene Air International.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
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Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
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Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer’s aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
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In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
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Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
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Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer’s aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
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In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
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Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer’s aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
“To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer’s aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Strategic Mistakes That Led To The Failure Of Kingfisher AirlinesSourav Giri
Industry Overview
Introduction to UB Group & KFA
Industry Analysis Based on Porters Five Forces
Identification of Crisis & Reasons for Failure
Identification & Analysis of Strategic Risks
Critical Mistakes in Decision Making & Strategy
Conclusion
The place
The people
Brief history
Thai worldviews
Buddhism
Culture and social organization
Social values
Key events and persons
Challenges of modern Thailand
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Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
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To Privatize or Not to Privatize, that is the Question
1. To Privatize or Not to
Privatize, that is the Question:
State of Aviation Industry in Pakistan
Dr. Joseph Wilson
Member, Competition Commission of Pakistan
International Conference on Air Transport, Law and Regulation:
Challenges for the Middle East
Abu Dhabi, April 14 ~ 16, 2009
2. ‘Unless you become more
watchful in your states and check
the spirit of monopoly and thirst
for exclusive privileges, you will
in the end find that... the control
over your dearest interests has
passed into the hands of these
corporations. ‘
Andrew Jackson, Former US President
Farewell Address, March 4, 1837
3. Why liberalize?
To promote competition
To enhance economic efficiency
To facilitate trade and globalization
To protect consumers from anti-competitive
behaviour
To provide better quality goods and services at lower
costs
To generate employment and economic growth
To promote broad development objectives
To meet growing demand that incumbent cannot
meet
To reduce incumbent’s inefficiencies and to make it
competitive
4. History of Aviation in Pakistan
1946: Orient Airways formed
1955: The state-run airline, Pakistan
International Airlines (PIA), formed and
merged into Orient Airways
1960: Civil Aviation Ordinance, primary
aviation legislation in Pakistan, established
1982: Civil Aviation Authority instituted to
handle civil aviation matters in Pakistan
1992: Deregulation & entry of private airlines
5. History of Aviation in Pakistan
1994: Civil Aviation Rules, 1994 issued
1998: Private airline, Bhoja Air, initiated
international flights to UAE from all major
cities of Pakistan; thus becoming a
competitor for PIA on these international
routes
2000: National Aviation Policy drafted
2005: Government allowed private airlines in
Pakistan to operate flights to destinations in
the UK, the US and Scandinavian countries in
addition to flights to Gulf countries
6. History of Aviation in Pakistan
2006: Pakistan ratified the Convention for the
Unification of Certain Rules for International
Carriage by Air
2007: Draft National Aviation Policy devised
to counter effects of deregulation by National
Aviation Policy 2000
7. State of Aviation Industry
Since 1955, PIA faced competition only on
international air routes by foreign airlines.
Liberalization of Pakistan’s domestic aviation
industry started in 1992.
As a result, private airlines, such as Bhoja Air,
Royal Airlines, Hajvairy Airlines, Safe Air, Aero
Asia, Raji Airlines and Shaheen Air
International entered the domestic aviation
stage.
8. State of Aviation Industry
Most of these airline operators started
operations with only one aircraft wet leased
from Central Asian Republics.
However, most of these airlines had to close
their operations within months leaving huge
debts behind.
Karachi Airport was unilaterally opened up for
international airlines in 1992. However, the
policy was reversed in the following year.
9. State of Aviation Industry
The current stage of the aviation industry of
Pakistan is set by three major airlines:
PIA
Shaheen Air International
Air Blue
10. Open Skies Agreements
Pakistan signed its first open skies bilateral
air services agreement with USA in 1995.
In 1998, Pakistan signed its open skies
bilateral air services agreement with
Switzerland.
At the same time, Pakistan concluded liberal
bilateral arrangements with Scandinavian
countries, Gulf Countries and Singapore
allowing them market access to three
additional gateways in Pakistan (i.e.
Islamabad, Lahore and Peshawar).
11. Role of Civil Aviation Authority
Regulatory Body under the control of Ministry
of Defence, Government of Pakistan
Provides services such as Facilitation, Air
Space Management, Air Traffic Control & Fire
Fighting Services
Plans, develops and maintains civil aviation
infrastructures in Pakistan
Ensures conformity International Civil Aviation
Organization standards
Negotiates Air Services Agreements with
other countries
12. History of Aviation in India
1912: Indian State Air Service in collaboration
with Imperial Airways conducted first flight in
India between Karachi and Delhi as an
extension of London-Karachi flight.
1932: Tata Airlines, first Indian airline formed
1947 (Partition): 9 air transport companies
-Tata Airlines, Indian National Airways, Air
service of India, Deccan Airways, Ambica
Airways, Bharat Airways, Orient Airways and
Mistry Airways
13. History of Aviation in India
1948: Air India International formed as a
national carrier.
1953: All airlines nationalized and
consolidated under Air Corporations Act 1953
– Indian Airlines Corporation (Domestic) & Air
India International (International) formed.
1986: Air Taxi Scheme – Private companies
allowed non scheduled air transport
1994 – Liberalization policy – Air Corporation
Act 1953 repealed
14. History of Aviation in India
1995: 10 Airlines started including Jet
Airways Sahara, NEPC Airlines, East West
Airlines, ModiLuft Airlines, Jagsons Airlines,
Continental Aviation, and Damania Airways –
Only Jetways and Sahara Survived
Currently: Indian Airlines, Jet Airlines, Air
Deccan, GoAir, IndiGo,
Kingfisher Airlines, Paramount Airways &
SpiceJet
15. Privatization in India
Privatization of NACIL (Air India International
& Indian Airlines) was announced in 2000.
Due to change in governments and their
approach towards privatization of the national
carrier, the process has suffered setbacks
and the carriers have not been privatized yet.
17. India-Pakistan 1991-2008: Comparison
Pakistan-India Domestic Air Traffic Comparison
0
5
10
15
20
25
30
35
40
Year
1992
1994
1996
1998
2000
2002
2004
2006
Year
Passenger(Millions)
India
PakistanLiberalization in India
Liberalization in Pakistan
LCC Entry Pakistan
LCC Entry India
18. PIA – a failing monopoly
PIA incurred losses of:
12 billion rupees in 2006
13 billion rupees in 2007
18 billion rupees in 2008
Despite continuous heavy losses, PIA
survived due to unmitigated financial and
administrative support of the Government of
Pakistan.
19. State-Aid vis-à-vis Privatization
Liberalization of the aviation industry depends
on the privatization of state-owned flag
carriers
When the state provides administrative and
financial support to a national airline while
private airline do not have access to similar
assistance, the latter face a competitive
disadvantage while the former become
increasingly inefficient and uncompetitive
The very thesis of liberalization is distorted
when entities are not privatized
20. PIA – a failing monopoly
Sinking fuel prices made it possible for PIA to
post a profit of Rs 600 million after a lapse of
nearly four years with the handsome revenue
of Rs 121 billion in the last quarter 2008-09.
However, the difference in fuel prices was not
passed on to PIA passengers, as reflected
from the high Hajj air fares charged by PIA
during Hajj season 2008.
21. PIA – a failing monopoly
Unsatisfactory Customer Services
PIA’s cancellation/rescheduling charges
appear to be against international standards
and practices.
PIA applies percentage charges across the
board to all categories, including normal and
discount fares, while Air Blue and Shaheen Air
charge a fixed fee for refund and change.
Airlines in the United States as well as Thai Air
& Gulf Air, impose fixed refund and change
fees.
Poor Safety Standards
EU banned 35 of 44 PIA aircrafts which failed
EU safety tests in 2007
22. Reluctance to Privatize PIA
Labor Concerns
A large number of employees have been
inducted in PIA on political basis.
Aircraft to Employee Ratio: Comparison
Ideal ratio ranges between 1:130 to 1:170
PIA – 1:418
Air India – 1:229
Japan Airline – 1:74
US Airways – 1:106
23. Government’s Stance on Privatization
Government officials are deliberating that
state-run entities, such as PIA, Railways and
PEPCO, that are extracting 200 billion PKR
from the masses in the form of taxes, should
be privatized to save Pakistan’s economy.
The government is also planning to devise a
long-term scheme for PIA to improve its
financial health after reviewing its
performance in first quarter of 2009.
24. Competition Regime in Pakistan
The Government of Pakistan established the
Competition Commission of Pakistan under
the Competition Ordinance, 2007 in
November 2007.
The Commission intends to detect, and where
necessary condemn anti-competitive
practices, in line with the international
standards, while reflecting the state of
development in the fines imposed or
remedies suggested.
25. Competition Regime in Pakistan
The Commission is analyzing the
unreasonable increase in Hajj air fares
charged by PIA in Hajj season 2008 as
compared to the Hajj fares in preceding years
(2006 and 2007).
PIA and Saudi Airways entered into an
agreement and fixed the airfares to be
charged from Hajjis, which is against the spirit
of competition.
26. Conclusion
There is a need for a strong and independent
regulatory body
The implementation of competition regime will
help prevent anti-competitive issues arising
because of government ownership
Privatization is essential for effective
liberalization and therefore competition