Research Proposal

Causes of Pakistan International Airline Downfall

Introduction

Pakistan International Airlines Corporation is the national flag carrier and was
incorporated on January 10, 1955 under Pakistan International Airlines Corporation
Ordinance, 1955, which was afterwards replaced by the Pakistan International Airlines
Corporation Act, 1956 (the PIAC Act). The airline operates on both national and
international routes, having a range of advanced aircrafts .The major activity of the
Corporation is to provide commercial air transportation, which includes passenger,
cargo and postal carriage services. The headquarters of the PIAC is situated at PIA
Building, Jinnah International Airport, and Karachi.

Due to competition and rising oil prices, international aviation industry regulations and
some internal factors such as human resource issues of over recruitment, de-motivated
employees, mismanagement of resources both in case of manpower and other
resources, aged fleet, corruption and lack of accountability PIA is facing a deep financial
crisis. It is losing its market share both in international market and domestic circuit. The
present report is written about the current situation of PIA and future plan of action for
PIA. The financial issues includes volatility in fuel prices, huge exchange rate losses,
high overhead costs, corruption, whereas operational issues includes unskilled workers,
delayed 'flights, circular debt issues, strikes, overstaffing, lack of vision etc.

To rectify those, some recommendations and solutions are mentioned, which should be
applied immediately to overcome those issues. The recommendations include
implementation, of Effective fuel ana exchange rate strategies, restructuring,
decentralizing, reduction of overhead costs, elimination of corruption etc.

Objective of research

The main objective of research will be following

To find out the causes and reason of downfall and what are the determinants
Give recommendation and solution to overcome the down falling.

SCOPE OF STUDY

This project will be help full for decision making in PIA. Reader can get information
about the problems and suitable recommendations for those problems. The study
focuses mainly on financial operational mismanagement issues being faced by PIA.
Policy choices and recommendations are suggested in this project.
METHODOLOGY OF STUDY
The methodology adopted for preparation of this report, consists of information gathered
through Primary Sources and Secondary Sources. Questionnaires were filled by the
employees of the PIA to give their insights about the issues being faced by the
Organization.

PRIMARY DATA

Interviews of staff

Practical work

SECONDARY DATA

Annual Reports of PIAC

Newspapers

Internet