PIA: Leading Change

Management

Ahmed Ali, Hassan Sial, Hooria Adnan,

Shermeen Wasif
MBA-II (B)

History of PIA
194
6

195
5

Domestic Market
Share
Airblue; 18%
Shaheen Air; 13%
PIA; 69%

International Market
Share
17%
31%

5%
6%
6%

14%

10%
11%

PIA
Emirates
Saudi Arabian Airline
Airblue
Sahheen Air
International
Qatar Airways
Etihad Airways
Other

Strengths

Weaknesse
s

PIA
Opportuniti
es

Threats

Porters
Five
Forces
Threat
Model

of new
entrants
MODERA
TE

Bargaini
ng
power of
supplier
s
HIGH

Rivalry
amongst
existing
firms
MODERAT
E-HIGH
Threat
of
substitu
tes
MODERA
TE

Bargaini
ng
power of
custome
rs
MODERA
TE

ISSUES

Political
Pressure
s

Poor HR
Policies
Debt
(Rs. 55
billion in
2007)

Changin
g MDs
and
policies

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Financial
performa
nce poor
(Loss of
35.88 bil)

Employe
es
dissatisfi
ed

ISSUES

Money
Leakage
s

Rising
Fuel
Prices

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IFE Score

1= Major Weakness, 2=Minor Weakness, 3=Minor Strength, 4=Major Strength

CAA Figures (2013-2014)

EFE Score

Recommendations
Form a New Board of Directors
Should include experts
No political
background/connections/interferences
Appoint a New Managing Director
Evaluate Performance of Senior
Management

 Appointment of a New Managing

Director
Industry Expert
Experienced
No Political Background/Connections
Oversee Restructuring and
Modernization of Fleet

 Privatization
The Government should sell 49% of its
share to private investors
Will raise capital and improve
operational efficiency
Government will retain the overall
ownership therefore the airline will
remain a National Carrier

 Modernize the Fleet

Induction of New Fuel Efficient Aircrafts
keeping in view the demand/passenger load
of different routes
At present PIA has a fleet of 40 aircrafts
some of which are very old e.g. Airbus A310s
PIA has to replace these aircrafts with newer
ones

Fleet Requirement (Proposed)

5 x ATR 72-500
10 x Airbus A320-200 or Boeing 737-900
5 x Airbus A330-200
10 x Boeing 777-200/300 ER

 Codesharing
Effective way to expand destination
network without buying additional aircrafts
PIA should codeshare with airlines on low
frequency/loss making routes
Will help the airline cut costs and share
revenue with the codesharing airline on a
proportional basis.

Thank You!