[Export
marketing]
|
This
report includes the brief introduction of PIA and its export
performance
|
Table of Contents
Hammad – e – Baritala
Praise is due to Allah whose
worth cannot be described by speakers, whose bounties cannot be
counted by calculators and whose claim (to obedience) cannot be
satisfied by those who attempt to do so, whom the height of
intellectual courage cannot appreciate, and the divings of
understanding cannot reach; He for whose description no limit has
been laid down, no eulogy exists, no time is ordained and no duration
is fixed. He brought forth creation through His Omnipotence,
dispersed winds through His Compassion, and made firm the shaking
earth with rocks.
About PIA - History
Birth of a Nation, Birth of an Airline
Air
transport has probably never been more important to the development
of a new nation than in the case of Pakistan. In June 1946, when
Pakistan was still in the offing, Mr. Mohammad Ali Jinnah, the
Founder of the upcoming nation, instructed Mr. M.A. Ispahani, a
leading industrialist, to set up a national airline, on a priority
basis. With his singular vision and foresight, Mr. Jinnah realized
that with the formation of the two wings of Pakistan, separated by
1100 miles, a swift and efficient mode of transport was imperative.
Orient Airways Takes to the Skies
On
23rd October 1946, a new airline was born. Initially registered as a
pilot project in Calcutta, Orient Airways Ltd. had at its helm Mr.
M.A. Ispahani as Chairman and Air vice Marshal O.K. Carter as General
Manager. The new carrier's base remained in Calcutta and an operating
license was obtained in May 1947.
Four
Douglas DC-3s were purchased from Tempo of Texas in February 1947 and
operations commenced on 4th June 1947. The designated route for
Orient Airways was Calcutta-Akyab-Rangoon, which also happened to be
the first post-war international sector to be flown by an airline
registered in India. Within two months of Orient Airways' operational
beginnings, Pakistan was born. The birth of a new nation generated
one of the largest transfers of population in the history of mankind.
Orient
Airways, along with the help of BOAC aircraft which had been
chartered by the Government of Pakistan, started relief operations
and transportation of people between Delhi and Karachi, the two
capitals. Subsequently, Orient Airways transferred its base to
Pakistan and established a vital link between Karachi and Dacca, the
two capitals of the two wings of Pakistan. With a skeleton fleet of
just two DC-3s, three crew members, and twelve mechanics, Orient
Airways launched its scheduled operations in a fairy-tale manner. The
initial routes were Karachi-Lahore-Peshawar, Karachi-Quetta-Lahore
and Karachi-Delhi Calcutta-Dacca. By the end of 1949, Orient Airways
had acquired 10 DC-3s and 3 Convair 240s which were operated on these
routes. In 1950, it had become increasingly apparent that additional
capacity would have to be inducted to cater to the growing needs of
the sub-continent.
A New National Flag Carrier for Pakistan
Orient
Airways was a privately owned company, with limited capital and
resources. It could not be expected to grow and expand independently.
It was then that the Government of Pakistan decided to form a
state-owned airline and invited Orient Airways to merge with it. The
outcome of the merger was the birth of a new airline, through PIAC
Ordinance 1955 on January 10, 1955.
In
addition to transport activities, Orient Airways had established the
nucleus of overhaul and maintenance facilities and acquired trained
pilots, engineers and technicians, measures which proved to be a
great asset for PIA during its teething phase.
PIA’s First International Service
The
year 1955 also marked the inauguration of the fledgling airline's
first scheduled international service - to the glittering, glitzy
capital city of London, via Cairo and Rome. Initially, there was much
criticism, as the public could not comprehend or justify the need to
operate an international route when, in their opinion, other projects
vital for a developing country should have been given a higher
priority. However, PIA's focus was, and continues to be, to serve the
Pakistani community at large. The provision of transportation to
expatriates has remained one of the foremost priorities of the
national airline. Moreover, PIA earned substantial foreign exchange
through international services, which it invested in the purchase of
aircraft and spare parts, as fleet expansion was a grave necessity
for the airline.
New Planes, New Directions, New Management
In
1956, orders were placed for two Super Constellations and five
Viscounts which were to be delivered in 1959. At this juncture, PIA
possessed a small fleet which comprised of Convairs, Viscounts, Super
Constellations and DC-3s.
While
Mr. M.A. Ispahani was the first Chairman of the new dynamic airline;
it was the first Managing Director of PIA, Mr. Zafar-ul-Ahsan, who in
his 4 year tenure got the ball truly rolling and set the shape of
things to come. The PIA Head Office building at Karachi Airport,
which houses the entire major departments of the airline, was the
brain-child of Mr. Zafar-ul- Ahsan. In fact, on his departure from
the airline, the employees presented him with a silver replica of the
building with the caption, "The House You Built".
In
1959, the Government of Pakistan appointed Air Commodore Nur Khan as
the Managing Director of PIA. With his visionary leadership, PIA
'took off' and within a short span of 6 years, gained the stature and
status of one of the world's frontline carriers. In aviation circles,
this period has often been referred to as the "golden years of
PIA".
Development,
expansion, and growth were keywords that the new management was
committed to. In March 1960, PIA launched its first Boeing 707 jet
service on the London-Karachi-Dacca, route which later proved to be
very successful. This trail-blazing accomplishment resulted in PIA
becoming the first Asian Airline to operate a jet aircraft, setting
trends for the future. In 1961, the airline took on the mammoth task
of initiating a cross-Atlantic service from Karachi to New York. By
this time, PIA had placed orders for more new aircraft, which
included Fokker F-27s, Boeing 720Bs and Sikorsky helicopters.
Helicopter services in East Pakistan had gained momentum by 1962 and
expanded to include Sylhet, Chittagong, Dacca, Comilla and Ishurdi.
PIA's helicopter services carried over 70,000 passengers during the
first year of operation. At the time, it was regarded as a stellar
operation, equal to any other in the world. Unfortunately, due to two
mishaps, the service was discontinued in 1966.
Historic Firsts and Unbroken Records
In
1962, finding the upper winds forecast favorable, PIA set out to
break the record for the fastest flight between London and Karachi.
With representatives of FAI (Federation Aeronautique International)
on board to monitor the official timings, PIA completed the flight in
6 hours, 43 minutes, 51 seconds, a record which remains unbroken to
this day.
In
1964, PIA achieved another historic first, regarded as major
milestones in the chequered history of the airline. On 29th April,
1964, with a Boeing 720B, PIA earned the distinction of becoming the
first airline from a non-communist country to fly into the People’s
Republic of China. PIA's first service to China was from Karachi to
Shanghai via Canton. In 1964-65, PIA expanded its fleet further with
the addition of a fourth Boeing 720B and two Fokker F-27s. Serious
development had become a reality and the PIA team continued to move
ahead with ambitious plans and goals for the national flag carrier.
A
collective pride and joyous buoyancy was pervasive within the PIA
family. Riding high on the crest of success, PIA became a household
name in Pakistan in the mid sixties. The war between India and
Pakistan, during 1965, further tested the national airline. PIA
played a major role in providing logistical support to the Armed
Forces by operating special flights using Boeings, Super
Constellations, and Viscounts. The Founder of the Nation, Mr. Jinnah
had predicted that the Pakistan Airforce would need the support of a
civil airline in special circumstances, and this came into evidence
during the war.
In
1966, a system of feeder services linking eight new points in West
Pakistan was introduced. By this time, the airline's Viscounts were
proving inadequate owing to traffic growth, and had to be replaced by
Tridents. The airline continued up the growth curve, receiving two
Fokker F-27s, two Boeing 707s and one Trident in the following year.
Style, Glamour, and Charisma
Around
this time, the airline saw a change in the top slot. Air Vice
Marshal, Asghar Khan took over the reigns of PIA for a tenure of 3
years. A number of highpoints are attributed to this period. The most
colorful, if not the most significant, occurrence for PIA was the
introduction of a new air-hostesses' uniform designed by none other
than the renowned French designer, Pierre Cardin. Taking the aviation
world by storm, this move, more than any other single factor,
imprinted PIA's name on the international market. The uniforms were
an instant hit, both at home and abroad.
Safety Management System at PIA
PIA is
the first airline to get certified (initial certification) on Safety
Management System (SMS) by Civil Aviation Authority CAA - Pakistan.
CAA Air Navigation Order (ANO 91.0032 issued in September 2008) binds
all airlines operating in Pakistan to have SMS. Well before the
issuance of this ANO, PIA initiated SMS awareness and implementation
in July 2008. PIA awarded initial certification on SMS in 27th
February 2009 by CAA.
The Pursuit of Excellence through Technology and Quality Control
Not
content with a number of historic firsts under its belt, PIA made
history yet again, by installing Pakistan's first computer, an
IBM1401, in 1967. PIA's first Engine Overhaul Shop, located near the
Head Office building, was also completed and commissioned around this
time. The Ground Training School (GTS) now known as the PIA Training
Centre was first conceived and developed during 1961-62.
Interestingly, training was initially imparted in the T-shaped
building which has now become the PIA Dispensary, close to the Head
Office building.
Besides
visible development and growth in traffic and revenues in the
sixties, PIA added additional destinations, new equipment, and
cutting-edge technology to support its ever expanding operations. A
new Jet Hangar for Boeings with a supporting airframe overhaul shop
was completed and commissioned in 1968.
In
1970, PIA set up its own Flight Kitchen in Karachi, which caters,
even today, to the national airline as well as other carriers. Over
the years, with the airline's expansion and increased capacity, the
need for a second Flight Kitchen became imperative.
Ushering In a New Era of Growth and Development
PIA
heralded the nineties by donning a bright new corporate identity.
Old-timers may remember the flutter that the earlier green and gold
livery had created when it was first introduced in 1974. However, in
keeping with the changing times, PIA introduced a smart, sporty 90's
look. The familiar PIA green was reinforced with moss green and pale
blue stripes were incorporated into the new corporate identity. The
stripes, a universal symbol of sport, highlighted PIA's active
participation and sponsorship of a diverse range of national games.
PIA's players have always been at the forefront of Pakistani Cricket,
Hockey, Squash, Football, Chess, Bridge, Polo and Table-Tennis teams.
The nineties also saw the expansion of PIA's massive Haj and Umrah
operations to Pakistan's smaller cities, in addition to the major
cities of Islamabad, Peshawar, Lahore, Quetta and Karachi.
PIA's
growth continues unabated and the airline now operates globally,
covering the entire domestic landscape and international destinations
spread over 4 continents.
Cargo
operations
PIA
operates a cargo delivery system within Pakistan. During the early
1970s, PIA operated a service called "Air Express" that
delivered documents and parcels from one airport to another. Pakistan
International Cargo was started in 1974 using two Boeing 707-320C,
with services to the Middle East and Europe. The operations ended in
the late 1990s when both aircraft were grounded. PIA Cargo transports
goods across Pakistan as well as to international destinations. These
include meat and vegetables, textiles, paper products, laboratory
equipment[32] and postal mail.[33]
In
2003 PIA launched "'PIA Speedex'", a courier service in
Karachi, Lahore, and Rawalpindi/Islamabad; expanding within a year to
12 cities. Today, the airline offers over 70 locations within
Pakistan, with shipments collected and delivered from customers'
homes. From 2004 to September 2007, PIA Cargo operated two Airbus
A300 Freighter aircraft chartered through MNG Airlines to Haan and
Luton; initially these also operated to Amsterdam, Basel and Cologne.
The
main constraint on volume of cargo lifted from the airports is the
capacity and number of aircrafts operating from there. The facilities
at the airports affect the efficiency with which the cargo is handled
and processed. Capacity to lift the cargo can be increased only by
attracting more airlines to operate their services. It has been
pointed out by the stakeholders that the foreign airlines are not
attracted to call at Pakistani airports because of the relatively
high landing charges and the fuel prices.
Security
of air flights has now become a major concern. In case of cargo not
being scanned or physically checked against explosives it is required
to be detained at the airport for 24 hours cooling period, which
defeats the purpose of sending the cargo by air. Physical examination
causes damage and makes the goods liable for pilferage.
Modern
cargo scanning equipment capable of detecting explosives has
therefore become an essential requirement for handling of cargo at
the airports. Most of the airports lack this.
Cargo
handling terminals, especially those of Pakistan International
Airlines (PIA), do not have adequate capacity for handling the cargo.
At present PIA transports over 50% of the air cargo. Special
attention is needed to expand and modernize the cargo terminals at
Karachi, Islamabad and Peshawar.
There
is demand from the exporters for cold rooms to be provided for
transport of perishable commodities. Where these facilities have been
provided these are not being used. The traders complain that the
facilities do not have a temperature controlled environment. There is
a need for careful assessment of the type and extent of facilities
required and then arrange accordingly.
The
time involved in completion of various business processes at the
airports is unduly long. Pakistan Customs Computerized System (PACCS)
introduced by Customs at the container terminals needs to be extended
to all airports and the IT systems of Civil Aviation Authority (CAA),
airlines, cargo handling agent and air cargo agents integrated with
it.
The
exporters have complained of lack of suitable lockers with strong
rooms at Karachi, Lahore and Peshawar airports for keeping gems and
jewelry and other valuables. There are also complaints of excessive
charges by PIA for carriage of such items.
CAA
does not levy any throughput charges for the exports. It levies
throughput charges at the rate of 2% of International Air Transport
Association (IATA) tariff for the air freight on the normal imports
and 5% of IATA tariff on imports requiring immediate clearance.
Actual
freight paid on these consignments is usually much less than the IATA
tariff and there are complaints from the air cargo agents on behalf
of the importers that the charges levied by CAA are excessive.
Because
of the geographical location of Pakistan there is great opportunity
for exploiting sea-air multi-modal transport to Central Asian
Republics (CAR). But this requires streamlining of related systems
and procedures for quick transfer of cargo from sea ports to airport
and promotion of regular air services to CAR.
Pakistan’s Cargo Market
Total
Air Freight Market of Pakistan = 233,715 Tons
To Pakistan Mostly from the East
Directional Movement of Air Cargo Ex-Pakistan
CARGO Performance
2008 PKR 5.455
Billion
2009 PKR 4.901
Billion
2010 Target PKR 5.700 Billion
2010 Revenue PKR 6.401 Billion
PIA CARGO Performed
13% over and above the target and 30% over 2009 in 2010
2011 Target PKR 7.301 Billion
The performance of cargo in 2011(January - July)
Month
|
ACT
2011
|
TGT
2011
|
2011
ACT Vs. 2011 TGT
|
ACT
2010
|
2011
ACT Vs. ACT (VAR)
|
||
PKR
(in Million)
|
VAR
(%)
|
PKR
(in Million)
|
VAR
(%)
|
||||
Jan
|
479.30
|
481.99
|
-0.6
|
393.62
|
21.8
|
||
Feb
|
391.59
|
500.55
|
-21.8
|
414.91
|
-5.6
|
||
Mar
|
508.85
|
521.55
|
-2.4
|
486.36
|
4.6
|
||
Apr
|
473.90
|
513.16
|
-7.7
|
440.27
|
7.6
|
||
May
|
454.78
|
586.03
|
-22.3
|
541.44
|
-16.0
|
||
Jun
|
656.09
|
732.63
|
-10.0
|
653.90
|
0.3
|
||
Jul
|
655.00
|
790.92
|
-17.1
|
653.90
|
0.2
|
||
Jan-Jul
|
3,619.51
|
4,126.83
|
-12.3
|
3,584.4
|
1.0
|
||
There are three types of CARGO AIR LINES
Dedicated Cargo Airlines
- Cargolux
- DHL
- FedEx Express
All-Cargo Subsidiary
Airlines operating with Cargo Subsidiaries
- British Airways World Cargo
- Swiss World Cargo
- Singapore Airlines Cargo
- KLM Cargo
- Lufthansa Cargo
Non-separate Entity
Cargo Divisions
operating with the rest of Airlines
- Emirates Sky Cargo
- Cathay Pacific
- Etihad Crystal Cargo
- PIA Cargo
Four P’s of Marketing with respect to PIA
Product
It is
an intangible product which is termed as service but provided with a
fleet of modern aircrafts that has both the capacity and capability
to carry heavy cargo at immense distances
- B 747 16.5 Tons
- B 777 – 300 12.5 Tons
- B 777 – 200 9.0 Tons
- B 737 2.0 Ton
- A 310 7.0 Tons
- ATR 0.5 Ton
Within
short time-span, PIA Cargo has built a reputation for timely
deliveries, operational excellence, and a high standard of customer
service.PIA Cargo earns valuable revenue for Pakistan International
Airlines and provides a massive boost to Pakistan's wide spectrum of
exports.
In
addition to offering cargo services through passenger aircrafts, PIA
Cargo also arranges chartered freighter flights to lift meat,
livestock and relief goods within and outside Pakistan. PIA Cargo
also specializes in the uplift of special cargo such as Dangerous
goods, live animals (sheep, cows, camels, horses), and shipments for
cargo aircraft. These commodities are uplifted on leased freighters
as and when the need arises.
- Cargo Sales
- Special Prorate Agreements (SPAs)
- Cargo Operation
- Targeting and Budgeting
- Market Planning
- Freighter Operations (Hiring/Routing etc)
- Space Control & Allocation
- Import / Export
- Claims / complaints
- Call Center
Types
of Goods that are exported through Cargo
- Textile
- Leather
- Machinery
- Surgical Equipment
- Carpet
- Courier
- Sports Goods
- Fruit
- Vegetable
- Fish
Price
TACT (The Air Cargo Tariff)
- TACT Book or CD is issued by IATA mostly thrice a year.
- IATA TACT contains comprehensive information regarding air cargo rules, regulations, rates and charges.
- TACT is more generally used for determining the applicable rates where there are no rates have been issued by the airline.
- TACT Rates are mostly at the upper end.
Commodity Specific Rates and Weight Breaks
- Many Rates are published for Specific Commodities e.g. The Code 8100 is specific for Dental, Surgical and Medical Equipment
- Per Kg Rate is mainly dependent upon the Weight Break i.e. The Higher the Weight Break, the Lower the Rate will be
CRC (Commercial Rebated Cargo) Rates
- In order to make the rates competitive for selling in the Market, PIA Cargo has developed Specific Rates Destination-wise for each Station i.e. the CRC Rates.
- CRC Rates are also developed keeping in view the demand for specific commodities and weight breaks.
- CRC Rates are developed for each Calendar Year after taking the inputs from the Stations, considering the demand, available capacity and the yield on each sector and the density of the Commodities.
Tonnage Deals
- Upon the commitment from the agent or shipper regarding the tonnage on a particular sector, the station may send the case to head office for approval.
- The details are analyzed by the Head office Team and if viable, such deals are approved for a certain time period.
Ad-hoc Rates
- In case ample space is available with the stations which could not be filled up with the TACT or CRC Rates, then the Stations approach the head office for the approval of Ad-hoc rates.
- Requests for Ad-hoc rates are sent on a certain Performa which includes the Competitor Rates, Applicable Rates, and Density etc.
Formal Approval of Ad-hoc Rates
- All the approvals of the Ad-Hoc Rates are required to be routed through M-1.
- However, due to time constraints, the approval has been sent through email after taking consent of the General Manager and the Director.
- Once the shipment is matured, M-1 should be prepared not later than 3 working days.
- M-1 should contain the justification for the rate, copy of the AWB and the email and any other relevant documents.
- In case the M-1 is not raised within the stipulated time, the shipment is treated as irregular by Cargo Revenue and appears as Irregular Claim IRC.
Space allocation
- All the Space available for Cargo is free and available to be utilized for the Station which generates Cargo with the best yield on that sector.
- Generally the space is allocated on the above basis for Winter, Summer and Mango Season.
- Foreign Station often contributes Cargo for Sixth Freedom movement but ignore the Yield for that Cargo as compared to the freight being originated from Pakistan.
- In order to promote soft sectors, low yield Cargo is also encouraged.
Incidental Charges
- Apart from the Freight, there are a number of Incidental Charges which may vary from Station to Station.
- Fuel Surcharge and Security Surcharge are the most common Incidental Charges.
- Other charges may include War Risk Surcharge etc.
Handling Charges Due Agents and Due Carrier
- A number of Charges such as AWB Fee are due Agent whereas Handling Charges etc pertain to the Carrier.
Place
Domestic Network
PIA
Cargo has built a reputation for timely deliveries, operational
excellence, and a high standard of customer service. It delivers
shipments to 22 domestic destinations.
International Network
In
addition to its Country-wide Domestic Network, PIA Cargo Delivers
shipments to over 40 International Destinations, while serving rest
of the world through Interline Carriage.
Additions in Network
During
2010, PIA added the vibrant cities of Chicago and Barcelona in its
Network.Colombo has been added recently to serve the Nation during
the World Cup where Betel Leaves will get a fast channel of import
into the country.
Promotion
Promotional & Brand Building Activities
Cargo
Market Planning Section is also responsible for looking after the
Cargo Branding Affairs.
PIA
Cargo has participated in a number of Internationals and Local Trade
Fairs over the past couple of years which generated good numbed of
sales leads.
Agents
Award Ceremonies are also held at Domestic and International
Stations.
SWOT analysis
SWOT
analysis is a strategic planning method used to evaluate the
strengths, weakness, opportunities and threats involved in a project
or business venture. It involves the specifying the objectives of
business ventures or projects and identifying the internal and
external factors that are favorable and unfavorable to achieving that
objective. This technique is credited to Albert Humphrey who led a
convention at Stanford University in the 1960s and 1670s using data
from Fortune 500 companies.
- Strengths: attributes of the person or company that is helpful to achieving the Objective.
- Weaknesses: attributes of the person or company that is harmful to achieving the Objective.
- Opportunities: external conditions that is helpful to achieving the objective(s).
- Threats: external conditions which could do damage to the objective(s).
1. SWOT Analysis-Internal Factor
STRENGTHS
Strengths
are found in the internal environment of the organization. They are
the backbone of an organization. Strengths of an organization can
over come any kind of weaknesses that the organization is facing. PIA
has a number of strengths due to which it is still one of the leading
airlines in Pakistan. These are as following:
- PIA has status of being Flag Carrier of Pakistan.
- Highest Market Share at domestic network.
- Multilingual Staff on Board.
- Booking Offices in all major cities both at domestic and International.
- PIA has well established brand as it’s oldest airline in Pakistan.
- Subsidized fares.
- Highly Professional Staff.
- Having Government’s protection.
WEAKNESSES
Weaknesses
are also found in the internal environment of the organization.
Weaknesses
if more in quantity can break down an organization easily. They can
over come the strengths as well. PIA also faces a number of
weaknesses which are as following:
1) Old
aging fleet of PIA causing higher operating cost.
2)
Huge burden of Employees which cause financial burden.
3)
Inadequate space on the aircraft.
4)
Charging of higher fare as compared to competitors.
5)
Lack of marketing activities as compared to competitors.
6)
Poor quality service on board especially in domestic flights.
SWOT Analysis-External Factor
OPPORTUNITIES
Opportunities
exist in the external environment. They need to be recognized and
used according to the business being run. An opportunity recognized
and utilized at the right time will be the strength of tomorrow. Such
kind of opportunities also exists for PIA in its external
environment. Some of them are as following:
1) PIA
has huge potential market in Middle East if PIA upgrades its fleet.
2) PIA
has largest domestic network and by proper route planning PIA can
generate huge amount of Revenue with higher profit.
3)
PTDC provides favorable market for domestic as well as international
sectors for the airline.
4) PIA
can generate more revenue by attracting customers through Web and
Mobile Reservations system.
THREATS
Every
organization faces external threats which could do damage to the
business's performance. These threats can damage the business and
even could be the reason of bankruptcy No doubt; PIAC is well
established and seasoned organization. Yet there are certain threats
being posed by the external environment. Some of them are as under:
1)
Negative rising perception about the country, regarding terrorism.
2)
Political instability and law and order situation.
3)
Rising fuel prices in the world.
4)
Over staffing at all levels.
5)
Frequently rising Airlines fare.
6)
Fast growing domestic and international competitors.
7)
Effective promotion strategies adopted by other competitors like
Emirates and Shaheen and Air blue.
Interpretation of SWOT Analysis:
From
the above SWOT analysis I came with certain Conclusion about PIA. No
doubt PIA has good market for further growth and it has many
advantages over many others airlines. But PIA should upgrade it’s
old aging fleet as it is causing the PIA major financial loss because
fuel prices has risen in the international market and PIA has still
old fleet, which causes higher operating cost. Another burden on PIA
is it has the highest number of employees as compared to other
airlines, as number of persons per aircraft is highest. PIA should
adopt a good marketing plan so that it will generate higher profit.
Merit based promotion should be emphasized. PIA should adopt
competitive strategies both at domestic network and on certain
international routes.
Potential Entrants
The
PIA is facing increased risk of being with stiffer competition in
future because foreign carriers such as flydubai etc and new
indigenous private carriers such as Burj Airlines
Bargaining Power of Buyers
The following constituents exerts some
pressure on the PIA pricing policies
Travel Agents
Who wants to increase their commission
with customers.
Business Travelers
They always like to have discounted
fares and keep insisting on that plus they evaluates other airlines
with keen eyes
Competitors
Following are the main competitors of
PIA
In Passenger
Internal
- Air Blue
- Shaheen Air International
- Aero Asia International
External
- Etihad Airlines
- Emarites
- Gulf Airways
In cargo
Dedicated Cargo Airlines
- Cargolux
- DHL
- FedEx Express
Airlines operating with Cargo Subsidiaries
- British Airways World Cargo
- Swiss World Cargo
- Singapore Airlines Cargo
- KLM Cargo
- Lufthansa Cargo
- Emirates Sky Cargo
- Cathay Pacific
- Etihad Crystal Cargo
Bargaining Power of Suppliers
The airline enjoys close relationship
with its suppliers but there is a risk of them giving more importance
to other carriers because sluggish performance of the line on which
there business also depends
Following are PIAs suppliers
- Aircraft Manufacturers
- Airports
- Food Service Company
- Oil Suppliers
Substitute Services
The airline also faces substantial
alternative option competition in this 21st century
landscape
Direct Substitute
- Pakistan Railway
- Ships
- Buses
We conclude that PIAs performance both
in passenger and cargo services are average and sluggish and may
decline due to increase inefficiency and ineffectiveness
Following are areas where the flyer has
to give importance
- Decentralization
- Employee Empowerment
- Overhead Costs
Two-Way Communication
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