Industry Background
• Pakistan International Airlines
Corporation (PIAC) was established
in 1955.
• Airline Deregulation Act 1978.
• 1982 the Pakistan Civil Aviation
Authority (CAA)
• CAA faced severe resistance from
various professionals of PIAC
• Resulted in a gradual but certain
decline in standards in all areas of
airline operations
OPEN SKIES POLICY
• In the early 1990s the government of
Pakistan adopted an Open Skies
Aviation Policy
• PIA suddenly found itself competing
with outside carriers at home
• This led to more confusion in the
minds of unprofessional
bureaucrats, the regulatory
authority and of course the national
carrier
PRIVATE AIRLINES
• several local airlines started to appear
in the private sector during the 1990s
• Most were set up with short-term gains
in view
• They used
– old and inefficient equipment;
– Lacked professional managements;
– They blatantly violated basic aviation
standards and laws governing safety
standards.
• Resultantly, several had to be shut
PAKISTAN’S AVIATION
POLICY
• The Pakistan aviation industry was started up when
Orient Airways merged with Pakistan International
Airlines Corporation (PIAC) to become the national
flag carrier of Pakistan called Pakistan International
Airlines (PIA)
• Pakistan’s National Aviation Policy has been reviewed
and revised several times in bits and pieces, mostly
by unprofessional bureaucrats and people with
vested agendas
• Neither the national carrier nor the airlines in the
private sector of Pakistan find the current aviation
policy acceptable
• Lack of vision, inability to use modern management
CURRENT PAKISTAN
SCENERIO
• Poorly served regions by local and
foreign carriers.
• Lack of meaningful incentives.
• Tourism industry remains strained.
• The airport infrastructure is
inadequate to handle the growing
number of travelers.
•
•
• None of our airports is worthy of being
called a world-class facility.
• Inadequate for new technology large
aircrafts like A-380.
• All our civil airports are now in the
middle of densely populated cities
• A vibrant airline industry plays a pivotal
role in projecting a country, and
improving its global market image
which is not so in case of Pakistan
•
• The national carrier has a long way
to go in improving its service,
image, and most importantly, its
profitability. The government
currently absorbs PIA’s heavy
losses on a regular basis.
• No Pakistani carrier has made any
significant contribution towards
developing a decent cargo airline.
•
•
•
•
•
•
VISION OF PIA
‘To be a world class airline exceeding
customer expectations through
dedicated
employees committed to excellence.’
•
PIA
• . Established in 1955, Pakistan
International Airlines (PIA) is a
national airline, operating
passenger and cargo services
covering eighty-two domestic and
foreign destinations.
• PIA is a huge corporation with more
than 17,000 employees.
• The structure is centralized with the
top-level management making the
why PIA has managed to
survive
• Federal government patronage
• CAA’s support to the national carrier
• A high average growth rate of
passenger traffic of around 8-10
percent per annum, to and from
Pakistan, during the past 15 years
PIA Culture
• The distinguished culture is
determined by the vision and
values communicated throughout
the structure and amongst people.
• Since Pakistan International Airlines
is bureaucratic organization, so the
culture is similar to that of any
government organization.
VISION OF AIRBLUE
•
• “To provide exceptional customer
service at low prices”
• Established in 2003, Airblue is a private
airline which offers passenger and
cargo transportation to both domestic
and foreign destinations.
• It is credited as the first private carrier
of Pakistan to operate the Airbus
A320 and introduce e-ticketing,
wireless check-in and self check-in
kiosk facilities.
• The size of the organization is not as
huge as PIA and mostly comprises of
• It is the first airline to have
employees trained according to
international standards.
• Airblue is fast becoming an airline of
choice for the Pakistanis.
• first time in the history of Pakistan
Airblue had placed orders for the
purchase of ten new air crafts
amounting to one billion dollars,
delivery of these airplanes started
• AirBlue’s domestic share is on rapid
rise and it has grown with each
passing day and number of
domestic flights has increased from
12 to 28 flights daily.
•
•
Culture at AirBlue
• Air blue has a open-organization culture
• Culture determinates:
• leadership
• Communication
• Group dynamics
• Workers perceive this as the “Quality of
work life” which directs their degree
of motivation.
• Final outcomes: Performance, individual
satisfaction, and personal growth and
development
Services Cycle
Client Airlines
Travel Agent
Ticket Purchase
ck
Feed Ba
Baggage
Destination Boarding Pass
Baggage Delivery
Security Clearan
Arrival
Departure lounge
PIA Services
• 53 Airplanes in the Fleet
• 76% market Share in Domestic
• 50% market share in International
• Three Different Classes
• Business
• Economy Plus
• Economy
• Global Distribution System (GDS)
• IATA and ICAO approved
• 103 agents operating in Twin city
territory
• American Express
• Air International
• Trans Air etc.
• 7% discount given to Agents.
• Lunch and dinners are provided in-
flight services.
• Ground Training School (PTC)
Recent Improvements In
PIA
• New 777 Boeing Airplanes added in
the Fleet.
• Chicago and Bradford routes added.
• Revenue Management system
• Navy
• Mother
• Tony
• Kilo
• Y
• Transit/Transfer passenger Facilities.
Regions Covered By PIA
America & Canada
UK & Ireland
London, Manchester, Birmingham, Bradford, Glasgow,
Stansted
Europe
Copenhagen & Oslo Regional (Istanbul, Amsterdam, Paris,
Frankfurt, Milan, Barcelona)
Paris
South Asia & Far East Asia
Kathmandu, Bangkok, Beijing Narita, Kuala, Lumpur,
Regional (DAC/DEL/BOM)
Gulf & KSA
Jeddah, UAE, Kuwait, Muscat, Doha, Bahrain, Dammam &
Riyadh
Air blue Services
• Low Freight Airline
• 6 air Crafts in the Fleet.
• Target Market: Middle Class
• Services in the Economy Class only
• Meals through: Kitchen Cuisine &
Gourmet.
• E’Ticketing.
• Female Staff hiring
• High Demand (usually overbooked).
Value Added Benefits
• ABN / Faisal Bank Cards (Co-
Branding)
• Every 50Rs. Spent 1 point earned
(1000 points Free)
• Frequent Fliers
• Blue Miles: 2000 miles
• Platinum Miles: 20,000 miles
• In flight sales point ( Feed back
Cards).
• I PAD services
Beyond Boundary
activities
• 152 Passengers Died on the 18th July
incident 2010.
• 5500,000 Rs. given to family of each
passenger by Air-Blue
• Free traveling, hoteling, stay, road
fairs.
• Even the taxi and transport charges
are paid by Air-Blue.
l
a rs
c i
f fi e
O to gs m
u s in
C a t
R
General Ratings:
PIA
Business CLASS:
PIA
ECONOMY Plus: PIA
ECONOMY CLASS:
PIA
Average Ratings for
Airblue
Domestic routes War:
AirBlue growth beats PIA
• According to provisional aviation statistics
for the year 2006-07, Airblue carried 1.4
million passengers in 2006-07, up around
7.7 per cent from previous year’s 1.3
million it carried between different cities
of Pakistan. The PIA, faced with
accumulated losses of more than Rs35
billion, lost domestic market share by 5.7
per cent as it carried five million
passengers compared to 5.3 million
during the period under review. “Airblue
has capitalized on Aero Asia
clientele,” said an industry official.
Airblue, which started with only 22,320
passengers in 2003-04, carried 1.4 million
passengers in the last fiscal year
Comparison PIA vs Air-
Blue
PIA Air Blue
50 Planes 6 Planes
America & Canada, UK & Abu Dhabi, Dubai, Manchester,
Ireland, Europe,
Business South Asia
Class, Economy &
Plus, Sharjah Only
Far Eastand
Economy
Dinner Asia, Gulfserved
Lunch covered Economy Class Only
Baggage allowed 40 to 50Kg No lunch, Snacks only
Direct flights Baggage allowed 20 to 30 Kg
Less flight delays Stays
Customer’s first Preference Usual Delays
76% share Second Preference
Student, Senior citizen, 17% share
Journalist discounts
Ground Training School (PTC) No discounts as such
Retired Air Force staff hired.
Rate Comparison
Tickets PIA Air Blue
Islamabad to Abu Dhabi 15,500 17,150
Islamabad to Dubai 14,500 15,900
Islamabad to Karachi 6,650 8,050
Islamabad to Manchester 44,500 45,200
Islamabad to Sharjah 14,500 17,400
Abu Dhabi to Islamabad 16,500 12,150
Dubai to Islamabad 14,500 14,900
Karachi to Islamabad 7,450 7,250
Manchester to Islamabad 28,500 36,100
Sharjah to Islamabad 14,500 14,900
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Special Thanx to:
Amjad Raja, HR head PIA Islamabad
M. Asad Khan, Sr. Sales promotion Officer
PIA.
Osama Ainuddin, Sr. Sales promotion
Officer PIA.
Saleem Sharwani, Station Head Air Blue
Islamabad.
Madiha Jamil Choudhry, Finance
Executive, Air Blue
Atif Hafeez Abassi, Sales Executive, Air
